Estonia is a great choice for startups. It has a tax system that helps businesses grow. Reinvested profits face no corporate tax. Indians can get e-residency for under ₹40,000. Setting up a company takes just 4 hours online. A 20% VAT applies if turnover exceeds €40,000. Fixed tax rates of 20% cover corporate, VAT, and income tax.
An investment banker suggested Estonia for European business. He stated anyone building a tech company globally should consider it. Estonia offers many benefits to e-residents. The e-residency is affordable for Indians. You can form a company quickly from anywhere.
Estonia taxes reinvested profits at 0%. Tax is only applied when profits are paid out as dividends. The country uses a 20-20-20 tax rule. This applies to corporate tax, VAT, and income tax. VAT registration is needed for yearly sales over €40,000.
Company registration in Estonia is fully online. It usually takes only a few hours. Famous figures like Bill Gates use Estonia’s e-residency. Over 2,000 Indian business owners are e-residents.
Estonia provides public services to all. Healthcare, education, and transport are free. Internet access is a basic right. This digital approach is recognized in the EU. Despite its small population, Estonia has created 12 unicorn companies. It also provides grants and venture capital. This attracts tech founders worldwide.
Estonia is ideal for global business expansion. However, it’s not for everyone. If your business is solely in India, Estonia may not be beneficial. Estonia’s e-residency does not grant citizenship or visa-free travel. It offers a secure digital ID. You can run your business from anywhere. The e-residency card can be picked up in India.