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E-Residency in Estonia, Part I

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Re: E-Residency in Estonia, Part I

#11

Post by edko »

ssijak wrote: post #3

Can I and if I can, how easy it is to get e-residency, open bank account and form a company from abroad (I am from Serbia)? Anyone with such an experience and using such company for a startup?

Getting e-residency is pretty easy. You would have to pick up your ID card, and residency package, at one of the authorized locations, though, and there is none is Serbia. I think the closest may be the Estonian consulate in Vienna. But, if you are going to travel, it may be more worthwhile to go to Tallinn.

Once you have e-residency (which takes a few weeks to be granted) opening a company can be done in a day. You will need an official address in Estonia, but there are several companies that offer that service. I used LeapIn, whose prices are very reasonable. They can also take care of your accounting.

Opening a bank account requires you to visit the bank in person (another reason why traveling to Tallinn is worthwhile). It is not guaranteed that they will open the account for you. I visited two banks. The first turned me down because I could not prove sufficient ties to Estonia. Swedbank (one the the three largest banks operating in Estonia) did accept me. They have a very good service. LeapIn was very helpful in setting this up too. Please note that Estonia is working on making the bank account opening process easier later this year (I believe it will make it possible for you to open an account from abroad; but it is not there yet, as far as I know).

Re: E-Residency in Estonia, Part I

#12

Post by ssijak »

edko wrote: post #11
ssijak wrote: post #3

Can I and if I can, how easy it is to get e-residency, open bank account and form a company from abroad (I am from Serbia)? Anyone with such an experience and using such company for a startup?

Getting e-residency is pretty easy. You would have to pick up your ID card, and residency package, at one of the authorized locations, though, and there is none is Serbia. I think the closest may be the Estonian consulate in Vienna. But, if you are going to travel, it may be more worthwhile to go to Tallinn. Once you have e-residency (which takes a few weeks to be granted) opening a company can be done in a day. You…

Thanks for the answer. I have seen this "The first turned me down because I could not prove sufficient ties to Estonia." on some other place as a reason for a turn down. What they actually need to prove ties to Estonia when you are only e-citizen? Or that other bank that accepted you is not requesting such proof? If you have income with that company, how hard and costly is to take that money (as I understood they tax only when you pay income from the company to you).

Re: E-Residency in Estonia, Part I

#13

Post by occamrazor »

Tankenstein wrote: post #10
occamrazor wrote: post #6

In every EU country digital signatures have the same validity as physical signatures since a long time (Directive 1999/93/EC). Most company filings are submitted electronically. Every state keeps a list of certified identification providers, which are mutually recognised. This list usually includes some government agencies, the national post service, sometimes banks, professional associations, chambers of commerce, a…

Signing anything in Estonia (at least in tech, where i work), is always done digitally.

Is it also common for B2C or person to person transactions?

Re: E-Residency in Estonia, Part I

#14

Post by ddon »

occamrazor wrote: post #13
Tankenstein wrote: post #10

Earlier quoted context omitted.

Signing anything in Estonia (at least in tech, where i work), is always done digitally.

Is it also common for B2C or person to person transactions?

Yes... everybody is using ID-cards here to sign docs and to sign-in online.

Re: E-Residency in Estonia, Part I

#16

Post by gozo »

DanBC wrote: post #7
occamrazor wrote: post #6

In every EU country digital signatures have the same validity as physical signatures since a long time (Directive 1999/93/EC). Most company filings are submitted electronically. Every state keeps a list of certified identification providers, which are mutually recognised. This list usually includes some government agencies, the national post service, sometimes banks, professional associations, chambers of commerce, a…

> What is so special about the Estonian programme? They actually use it.

They've had this in Sweden for like 10 years. It's all pretty clunky, even though you can now use an app instead. You generally have to have your card, then some plug-in, then the host have to implement the whole thing. Usually signing things isn't the whole story either, so you still have to deal with e.g. payments.

The Estonian system is probably better, since it's newer, but the challenge isn't really in handing out cards. It's standardizing authentication on the Internet and connecting that to whatever else matters.

Re: E-Residency in Estonia, Part I

#17

Post by paulsutter »

iokevins wrote: post #2

Toomas Hendrick Ilves, the current Estonian President, represents a cybersecurity expert. Things like that can mean a big deal, with respect to policy. I lived next door, in Riga, Latvia, for several months, in late 1997; during that time, we visited the beautiful city of Tallinn: https://en.wikipedia.org/wiki/Tallinn . Definitely worth the trip.

Talinn is a beautiful city. It feels a bit Scandinavian, but newer, smaller, friendlier, more optimistic, less rich but faster growing.

Re: E-Residency in Estonia, Part I

#18

Post by zutnop »

edko wrote: post #11
ssijak wrote: post #3

Can I and if I can, how easy it is to get e-residency, open bank account and form a company from abroad (I am from Serbia)? Anyone with such an experience and using such company for a startup?

Getting e-residency is pretty easy. You would have to pick up your ID card, and residency package, at one of the authorized locations, though, and there is none is Serbia. I think the closest may be the Estonian consulate in Vienna. But, if you are going to travel, it may be more worthwhile to go to Tallinn. Once you have e-residency (which takes a few weeks to be granted) opening a company can be done in a day. You…

Thank you edko for recommending LeapIN! We appreciate it alot!

Re: E-Residency in Estonia, Part I

#19

Post by zutnop »

ssijak wrote: post #12
edko wrote: post #11

Earlier quoted context omitted.

Getting e-residency is pretty easy. You would have to pick up your ID card, and residency package, at one of the authorized locations, though, and there is none is Serbia. I think the closest may be the Estonian consulate in Vienna. But, if you are going to travel, it may be more worthwhile to go to Tallinn. Once you have e-residency (which takes a few weeks to be granted) opening a company can be done in a day. You…

Thanks for the answer. I have seen this "The first turned me down because I could not prove sufficient ties to Estonia." on some other place as a reason for a turn down. What they actually need to prove ties to Estonia when you are only e-citizen? Or that other bank that accepted you is not requesting such proof? If you have income with that company, how hard and costly is to take that money (as I understood they tax…

For tax questions, there aren't simple answers that would apply for everybody. It depends on where do you have your personal tax residency, do you travel, your health care/insurance/pension situation, etc. The tax rules for people who live and work outside of Estonia (for most of the year) are simple on the Estonian side, but you have to include the rules on your person tax residency side also. For a more personalized answer visit us at https://www.leapin.eu and send us an email please.

Re: E-Residency in Estonia, Part I

#20

Post by zutnop »

gozo wrote: post #16
DanBC wrote: post #7

Earlier quoted context omitted.

> What is so special about the Estonian programme? They actually use it.

They've had this in Sweden for like 10 years. It's all pretty clunky, even though you can now use an app instead. You generally have to have your card, then some plug-in, then the host have to implement the whole thing. Usually signing things isn't the whole story either, so you still have to deal with e.g. payments. The Estonian system is probably better, since it's newer, but the challenge isn't really in handing o…

That's the trick, all Estonian government services + all private services which benefit from strong authentication or authorization have implemented the ID-card log in and signature functionality to their services/apps/websites.

So whether I send 5€ to my mother, or I sell my car to a stranger on other side of the country, or I submit my yearly tax data, or I complete my 1 000 000 € M&A deal, I use my digital identity (PKI infrastructure) to sign the transaction.

The physical ID-card itself is not the most user friendly token in this Estonian infrastructure (requires the reader + op system drivers/soft). The alternative token is Mobile-ID, where the same PKI infrastructure is deployed onto my phone SIM card and I use my mobile device to authenticate / authorize my transactions. At the moment this only works with certified Estonian carriers but in 2016 the next generation of mobile support should make this channel usable over the whole world.

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