Why Brexit can make a positive impact for your business, and not be the end of the world

Now you have to react and move your business, or at least incorporate a subsidiary company somewhere inside the EU, choose wisely. When you are scaling pros and cons, we will give you one possible location to consider; Estonia.

Ernest Hemingway has written that in every port in the world, at least one Estonian can be found. Estonia is a small country with population of 1,3 million people. People in Estonia speaks Estonian as their mother language, but they also speak really good English. Actually Estonians are on the 7th place in the world speaking English as non-native speakers. In addition to English many people also speak Russian, Finnish and German. Entrepreneurship is becoming more and more popular among Estonians. Nevertheless, most new businesses last 3 years and have one or two employees, still Estonians take their changes and try to turn their passions into money. Often they do it beside on average 40,8 hour working week. Estonia government have started many projects to support entrepreneurship. Most popular institution is Enterprise Estonia (EAS). There are also many nationally supports programs to get starting money or finance product development, expand overseas etc.

Beside everything, Estonia is desirable destination for entrepreneurs all over the world. Estonia locates on the border of East and West. For entrepreneurs from Asia, Estonia is a gateway to rest to the Europe, but also the last stop before Russia and other East- Europe countries. Estonia have all the possibilities and know how to intermediate business trades between East and West. Highly developed e-services and hard working multi- lingual people make business quick, cost-effective and trustworthy.

The Republic of Estonia is the first and yet the only country to offer e- residency. e-Residency of Estonia allows non-Estonians access to Estonian services such as company formation, banking, payment processing, and taxation. e-Residency additionally enables secure and convenient digital services that facilitate credibility and trust online. e-Resident will get a smart card which can be used to sign documents and as a identification card.

E- Residents can:

– digitally sign documents and contracts. Digital signatures and authentication are legally equivalent to handwritten signatures and face-to-face identification in Estonia and between partners around the world.
– verify the authenticity of signed documents
– encrypt and transmit documents securely
– establish an Estonian company online
– Big Six Europe will help you to get physical address in Estonia, that is required to establish a company
– administer the company from anywhere in the world. Or you can let Big Six to do it for you.
– conduct e-banking and remote money transfers
– access online payment service providers
– declare Estonian taxes online
– fulfilment of medical prescriptions

The first thought with having your business thousands miles away, is probably offshore tax, banking and other arrangements. But it´s not like that with Estonia. Estonia is not a Caribbean sea like tax heaven, though the tax burden is still far from the highest. Commonest taxes you need to know about are income tax (20%), corporate tax on profits (20%) and VAT (20%). There are also social taxes totalling around 35% for employees and directors that perform their services within Estonia. If you use employees from any other countries, you pay social tax to their homeland. Also e-residents will have their financial footprint monitored by the government digitally, and can not be hidden in a warren of complicated legal arrangements. It doesn´t matter if you are an e-resident or not, here are some good points why Estonia is one of the best countries in the world to locate your business:

– minimal bureaucracy and clear tax framework
– easy infrastructure
– there are low startup and maintenance costs
– remote administration from anywhere in the world
– 0% company income tax until distributions are made. So, more money stays in the company’s till, thereby – giving businesses the ability to set up a remote team faster and more successfully. Remember that e. Residency does not determine tax residency
– company is located in EU, that increases perception of trustworthiness
– inclusion in the EU´s legal framework
– digital signing. You don´t have to print and scan your documents or use expensive international couriers to send documents
– both the European Union and the United States recognise e-Residents’ digital signatures as being legally binding
– pay taxes online.

If you are considering moving your company to earn more profit, to pay less taxes or to avoid consequences of Brexit, consider Estonia. Ask consultation from BIG SIX & Partners. Tell us about your visions and we provide solutions.