SWISSMONEY Iban Accounts with Sepa

Our valued sponsor

EmiratesSetup
SWISSMONEY Iban Accounts with Sepa
EmiratesSetup

Is Estonian company via e-Residency worth it?

#4
You have to sign this PoA and get all done remote if you don't want to travel there. It requires notarizing and apostille and you need to send the original notarized docs to your agent there!
 
#5
I think one also has to consider how current and potential future clients look at your company. Being able for your client to profit from the EU reverse charge VAT system among EU companies, and for you to evade witholding tax deducted from your pay could be a major factor to consider. And unless one needs a real bank account with deposit protection in Estonia one can now deposit the share capital with approved EMIs like Holvi and Transferwise, hence does not have to visit Estonia. I am waiting for my approved e-residency card, did a lot of reading, hope I got it right. New forum member, be gentle ;-)
 
  • Like
Reactions: John Andrews
#6
Lucas0511 said:
I think one also has to consider how current and potential future clients look at your company. Being able for your client to profit from the EU reverse charge VAT system among EU companies, and for you to evade witholding tax deducted from your pay could be a major factor to consider. And unless one needs a real bank account with deposit protection in Estonia one can now deposit the share capital with approved EMIs like Holvi and Transferwise, hence does not have to visit Estonia. I am waiting for my approved e-residency card, did a lot of reading, hope I got it right. New forum member, be gentle ;-)
Click to expand...

Will you re-phrase that in a simplier manner? What's your point?
 
#7
Let me try @karim8899 , with a EU company you get credibility vs. other EU companies, evade withholding tax deduction on your pay and you do not have to charge them VAT under EU reverse charge system. E-Residency does not require you to travel to Estonia, unless you need a real bank account, usually with LHV bank.

karim8899 said:
Will you re-phrase that in a simplier manner? What's your point?
Click to expand...
 
#12
1/ bank
I think that all the Estonian banks are among the most expensive of Europe. Georgian banks are much cheaper.

2/ VAT
The EU countries are not happy about the actual system. In the future, they want to tax all incoming goods thanks to the post office companies. For example, you order something from Georgia, they would like all the courier companies to collect the VAT. This already happens with UPS and DHL but it should also work for the official courier companies like "la poste" in france

if you have a Georgian company and if you sell digital good to Euro customers no-one will ever ask you to follow the EU rules on the Georgian side. Normally, this should be on the customer side. However, if you have a portuguese customer, no-one will ever be able to ask this portuguese customer to pay VAT.

3/ there is no money exchange controls in Georgia
Georgia - Foreign Exchange Controls | export.gov
 
#17
JimBeam said:
Not sure about this...
Have you checked pricing for banks in Switzerland, Lichtenstein or even Cyprus.
Click to expand...
Yes, Switzerland and Lichentein banks ask for very high deposit. (I don't remember, i think it is like like 50,000 euros? 100,000 euros? upfront.
Cyprus is ok but it is part of the anglo saxon world. They ask for a letter of recommendation to open a bank account. In my case it is IM PO SS I BLE
 
#18
LisaSimpson said:
i found articles that mention it is possible to avoid opening an Estonian bank account:
Digital Banks For Your Estonian Company

I am skeptical about it because i thought we had to deposit 2500 euros as equity in a bank located in Estonia when starting a business there.
Click to expand...

This is mandatory in every country. In Estonia you can postpone that for up to 10 years.
And if you deposit it right away - it's usable for business expenses right away so no worries.
In Cpyrus it's €5k (but can be also postponed)




LisaSimpson said:
I get the trick. They modified the commercial code of Estonia. You can use a digital bank anywhere in Europe during 10 years and then, you must open a bank account in Estonia and deposit 2500 euros for equity.
Estonian companies now have greater freedom in business banking
So, in other words, they let you grow and then you are forced to use a, Estonia based bank.
Click to expand...


Again, you have 10 years to do it. You can save €10/month and pay that after 10 years. Don't see any problem with that.
But, again if you you want to payout dividends, you'll have to deposit these €2.5k first before you can make the payouts.


LisaSimpson said:
Yes, Switzerland and Lichentein banks ask for very high deposit. (I don't remember, i think it is like like 50,000 euros? 100,000 euros? upfront.
Cyprus is ok but it is part of the anglo saxon world. They ask for a letter of recommendation to open a bank account. In my case it is IM PO SS I BLE
Click to expand...

Yes, but we were talking about the prices.
Here's the pricelist of Estonian LHV bank: Price List · LHV and that's probably couple times less than I pay in Cyprus.
Just monthly account keeping fee is €50 in Cyprus vs here is €0 saving you €600/year if you compare to Cyprus.

So I don't see any reason for these complaints at all....
 
#19
@JimBean With "here" you refer to Georgia, right.

At LHV the yearly cost is €240 for non-residents.

I think with Lithuania in EU preparing e-Residency and Azerbaijan offering it the landscape for e-Residency will offer more choices soon. I certainly would like to see some competition among those countries, with other countries joining in. Mounting competition will hopefully also keep Estonia from implementing some crazy ideas from the Whitepaper for e-Residency 2.0 - like the requirement for e-resident companies to double profit every year ;-) . Some of these ideas have now made it into an action plan, whose content has not been published yet. Time will tell.
 
You must log in or register to reply here.
The Kingdom Bank

Forum Announcement

Latest Threads

SWISSMONEY Iban Accounts with Sepa
The KingDom Bank
Offshore Bank Accounts
Top Bottom
Back