Any tips for a 2 person European company. One founder based in Amsterdam, the other in London. We are close to setting things up, some input from other founders would be great
Ask HN: What surprised you about Estonia e-Residency and running an Estonian OÜ?
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Re: Ask HN: What surprised you about Estonia e-Residency and running an Estonian OÜ?
#12Please beware: From: https://learn.e-resident.gov.ee/hc/en-gb/articles/3600007215... > Corporate tax residency > However, some countries have different rules for deciding if a company is tax resident. It is common that, in addition to the place of incorporation, the place of effective management can trigger tax residence. If you run your company from a country with regulations like this, then the company may end up h…
Also estonian law doesn't recognize trusts, so if you want to save your assets for your children that's a problem.
Re: Ask HN: What surprised you about Estonia e-Residency and running an Estonian OÜ?
#13It was great until they turned racists and stopped me from using the service because of my nationality (Russia), even though neither me or the business had anything to do with Russia.
are you a russian speaking estonian? or russian citizen?
Re: Ask HN: What surprised you about Estonia e-Residency and running an Estonian OÜ?
#14Question: are OÜs particularly beneficial even for non-Estonians (EU), and in what way?
I can't speak about all EU countries, but the one country I looked into (Spain), I couldn't find a way to do everything remotely. It required being physically present for some things, so that's why I am asking about whether Estonia actually delivers IRL on the e part of e-residence.
Re: Ask HN: What surprised you about Estonia e-Residency and running an Estonian OÜ?
#15It was great until they turned racists and stopped me from using the service because of my nationality (Russia), even though neither me or the business had anything to do with Russia.
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Re: Ask HN: What surprised you about Estonia e-Residency and running an Estonian OÜ?
#16It has been a great experience. Setting up the company was online, and it took 3 days, including the time spent to change the name because the initial name was rejected. You can use Wise for banking, but LHV is also visible but there is an account limit if you don’t live there. Accounting is easy, but you will need an accountant for tax reporting if you have a VAT ID. My accountant charges me 60 euros per month and does an amazing job.
Re: Ask HN: What surprised you about Estonia e-Residency and running an Estonian OÜ?
#17Useless + overhyped .
Company will end up as tax resident from the country where it is managed & controlled .
If there is an DTA the tie breaker rule applies and the country from where it is managed & controlled gets the right to tax .
Also you get to enjoy bureaucracy+ dual accounting in both countries .
If there is no DTA it can lead to double taxation .
And if you don't have a fixed place of management/business+ tax residency (basically nomading) a US LLC disregarded for tax purposes is a much better fit .
Re: Ask HN: What surprised you about Estonia e-Residency and running an Estonian OÜ?
#18I was surprised how amazing it is ? What do you wish you had known before getting started? Your yearly financial data is public, everyone will know your income / profit. And you will get spammed, your email will be public too. How easy has it been to run the company remotely? Great Have you ever needed to travel to Estonia to resolve an issue? Only visited once to open bank account LHV but I closed it since then and…
Same experience for me, it's been great! I never needed to visit since I could use Wise for banking. The only thing is that surprised me was the tax rate, when I created my Company the advertised rate was 20/80 but in reality it was ~25/75 and it increased since.
Wise is not a bank.
Re: Ask HN: What surprised you about Estonia e-Residency and running an Estonian OÜ?
#19It was great until they turned racists and stopped me from using the service because of my nationality (Russia), even though neither me or the business had anything to do with Russia.
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Re: Ask HN: What surprised you about Estonia e-Residency and running an Estonian OÜ?
#20Please beware: From: https://learn.e-resident.gov.ee/hc/en-gb/articles/3600007215... > Corporate tax residency > However, some countries have different rules for deciding if a company is tax resident. It is common that, in addition to the place of incorporation, the place of effective management can trigger tax residence. If you run your company from a country with regulations like this, then the company may end up h…
Also estonian law doesn't recognize trusts, so if you want to save your assets for your children that's a problem.
You mostly use foundations for that purpose in civil law countries (which are also not part of the hague trust convention )