After submitting your e-Residency application, get a handle on admin, find service providers, and get to know community
While 3-6 weeks may seem like a lifetime after seeing that “Application submitted!” pop-up, the reality is you’re now beginning your business’ journey. Congratulations!
Here we’ll go over 5 of the simplest and most important topics on any upcoming e-Res business agenda.
Not all banks are cut from the same thread, and the same goes moreso for e-residents vying to secure a business account of their own.
While the global banking landscape changes and expands at a staggeringly fast-pace, some hurdles remain in place for e-residents when choosing a viable provider for financial services. For example, Estonian banks require new clients to make at least one visit in-person to verify their identity. They also generally only onboard new business clients with a significant connection to Estonia, i.e. with local clients, business partners or logistics.
Luckily, since 2019 Estonia has allowed e-residents to open business bank accounts from any European Economic Area country. This means that European residents with existing business banking relationships may not have to look further.
If you’re interested in opening an account with a digital bank, or with an Estonian banking partner like LHV or Coop, a quick jolt of research will go a long way in ensuring your happiness.
Partners like Wise, Revolut and Wamo potentially make cross-border banking a breeze in today’s modern world, if you’re looking into fintech solutions. However it’s necessary to ensure your payment gateways for accepting customer funds (like Stripe, Payoneer or PayPal) are able to link up with your chosen banking partner.
We’ve written a complete guide to borderless banking so you can kick things off with a steady foot.
Read more about business banking options for e-residents:
It takes some time to get your e-Residency application sorted out and the card delivered to your nearest pickup point. So, here’s a little productivity hack that can get you started right now.
There are service providers who can issue professional invoices under your name so that you could start earning income without delay.
For example, aside from e-Residency company formation and admin, Xolo offers Xolo Go - an invoicing solution that lets you generate and send invoices for free, paying only 5,9% whenever you withdraw funds to your personal bank account. It’ll take just 10 minutes to create your first VAT-compliant invoice and receive payments via a bank transfer or credit card.
E-residents can start using Xolo Go for a quick start and, once their e-Residency card arrives, switch over to invoicing under their own company. Which gets us to the next point…
Invoicing, banking and admin work all have one thing in common: They are mundane things that you don’t have to handle yourself!
There are a handful of service providers dedicated to helping e-residents launch, manage and grow their businesses, but it’s important to choose the one that best fits your individual needs as an e-resident. You’ll find that a bit of research will net you the most value and the best cost when comparing multiple providers.
Xolo offers a €59 a month starter plan for solopeneurs to help them handle accounting, expense reporting, invoicing and more. Beyond this our services continue to grow around your business revenue and needs. However, if you need support for a more complex setup, using the Comparison tool on the e-Residency marketplace might set you up for success.
Being able to hand off the majority of your administrative work to a trusted, knowledgeable and proactive provider will ensure that you’re maximizing the time you spend on growing your business and doing what you do best.
Read the e-Residency team's tips on how to find the perfect service provider for your business:
It’s important to state that any citizenship- or residency-based tax obligations are yours to consider regardless of being an Estonian e-resident –– this is not a get out of taxation free card in your home country, or wherever you may be dually-obligated tax-wise. Take care to brush up on cross-border tax concepts like permanent establishment and double taxation treaties. You won’t regret getting all your ducks in a row before investing time and effort into setting up your business across borders.
Estonia makes taxation simple and entirely digital, and company profits that are reinvested in the company do not incur corporate taxation (awesome). Your decision to go with Estonia’s pioneering e-Residency program puts you in one of the most startup and business-friendly tax nations in the world. A good choice.
There are a few types of taxes to be aware of when you’re thinking of applying for e-Residency:
For a full breakdown of these taxes, and a bit more information on dividends, personal income taxation in Estonia, and some unique ways you can aid yourself year-round (and tax season), check out our ultimate guide to paying taxes in Estonia.
Starting a business may feel like a daunting undertaking, but you’re not alone! Entrepreneurs and freelancers across the world have a ripe opportunity to connect and aid each other like never before.
Joining a community like the official e-Residency Facebook group, or Xchange by Xolo, will feed your entrepreneurial spirit. Contributing and sharing with peers is the simplest and best continual business practice you can do freely. We hope to see you vibin’ with the 120K global entrepreneurs in Xolo, and becoming the next e-Res business to join our 6K+ strong community of companies!
