One of Estonia's first "e-residents" explains what it means

Post by skeletal88 » Wed, Apr 04, 2018, 8:45 AM UTC

edwin01 wrote: post #99

thinkloop wrote: post #78

Earlier quoted context omitted.

Thanks for touching on some of the things I was expecting to read in the article. > you need to have half of your capital available always What does this mean, in a bank account?

Yes. If your balance at the end of the year isn't half of your starting capital, you need to tell estonian government officials how you are planning to recover from this horrible failure. I didn't know this on my first year and we just made a small investment at the end of the year that made the balance to drop at horrific 40% level which triggered alarms in the government. If you fail to satisfy them with your plan,…

Post by ProblemFactory » Wed, Apr 04, 2018, 8:48 AM UTC

edwin01 wrote: post #117

pavlov wrote: post #115

Earlier quoted context omitted.

I realize it’s annoying, but the requirement to register “lost” share capital is a common one in Europe. Think of it as a warning flag to potential lenders. The default assumption in society is that limited liability corporations have enough assets that it’s safe to sell them something on credit, i.e. invoicing rather than cash. Forcing companies to register the fact that their equity is negative provides an easy way…

This is a good point. However for me the annoyance is not about reporting the decrease, it's the fact that if capital drops below 50%, government is now in control whether they exercise that control or not. I would understand something like 10% but 50% is just ridiculous to me.

Post by pavlov » Wed, Apr 04, 2018, 9:02 AM UTC

edwin01 wrote: post #117

pavlov wrote: post #115

Earlier quoted context omitted.

I realize it’s annoying, but the requirement to register “lost” share capital is a common one in Europe. Think of it as a warning flag to potential lenders. The default assumption in society is that limited liability corporations have enough assets that it’s safe to sell them something on credit, i.e. invoicing rather than cash. Forcing companies to register the fact that their equity is negative provides an easy way…

This is a good point. However for me the annoyance is not about reporting the decrease, it's the fact that if capital drops below 50%, government is now in control whether they exercise that control or not. I would understand something like 10% but 50% is just ridiculous to me.

Post by edwin01 » Wed, Apr 04, 2018, 9:08 AM UTC

fcolas wrote: post #120

I'm within the 1st year of e-residency + incorporation. Here're a few of my experiences. 1. Setup is not as straightforward as they claim, but it's still quite easy. It compares well to what I've seen in France (LegalStart, CCIs, etc.) and the USA (Clerky/C-corp, Delaware, etc.). Actually there's no (printed) paper work because all is digitally signed with your e-residency card—only that is a big plus. 2. Running the…

Post by kwhitefoot » Wed, Apr 04, 2018, 10:20 AM UTC

mathgladiator wrote: post #46

ummonk wrote: post #42

Earlier quoted context omitted.

That describes a ton of populist leaders throughout history though. Sometimes it is more beneficial to raise a mob and usurp power than to stay withing the system.

History has been defined more by classes and royalty and rich familes, and America has more people that have risen based on their ability to execute. My claim is that this creates a release valve of sorts where people that can execute can rise in ranks.