Estonia is one of the most digitally advanced societies in the world. In fact, some call it “e-Estonia” because its capital city is so connected and uses digital services so frequently. At this time, Estonia has a special regime for blockchain businesses called “The Digital Residence Program” that allows you to get an Estonian e-Resident identity and consequently a preliminary license to operate your crypto business in the country. The process is not easy, but with a little bit of research and persistence, almost anyone can do it! Here is our guide on everything you need to know about getting a crypto license in Estonia.
What is an e-Resident?
An e-resident is someone who is a citizen of the internet and uses the internet to conduct business. An e-resident of Estonia can conduct business online and receive payments online. In many ways, e-residents of Estonia are thought of as “digital nomads,” who don’t have a fixed place to live but can still conduct business in Estonia. Estonia has more than 50,000 e-residents and has become a hub for entrepreneurs. This is because Estonia has built a reputation for being a very digitally advanced society that is friendly to businesses in the “new economy,” such as the blockchain sector. There are a number of benefits to becoming an e-resident of Estonia, including the ability to digitally sign documents and use services like e-Health, where you can get government-subsidized healthcare online. To become an e-resident of Estonia, you first need to apply and be accepted as a resident. The application process can take up to a year, during which time you are given the status of “e-visitor.”
The Estonian Licensing Process for Crypto Businesses
In Estonia, for almost any business — blockchain-based or otherwise — you must apply for a business licence. The Estonian licensing process may be applied to both physical and virtual businesses. For crypto business, before applying for a licence, you first need to be an e-resident. If your application is approved, you will receive a preliminary licence, which is valid for 12 months. This is your chance to operate and test your business in the real world, with the support and backing of the Estonian government. Once you have been given this opportunity, if you have conducted a successful operation, you must then apply for a fully-fledged business licence. If your application is rejected, you need to wait 12 months before reapplying.
The Costs of the Estonian Licensing Process
Becoming an e-resident of Estonia and applying for a preliminary licence costs €100. This is a one-time cost. After that, if you are granted a fully-fledged licence and are operating your business in Estonia, you pay an annual tax of €3,900. The fees for applying for an Estonian licence can be difficult to budget for, especially if you don’t have a lot of money. However, there are a number of ways to get around these hurdles.
How to Apply for an Estonian Licence
The first thing you must do when applying for an Estonian licence is to register a company in Estonia. There are many advantages to registering a company in Estonia, including the low tax rate and high level of trustworthiness among Estonian people. There are a few things to keep in mind when registering your company in Estonia: – You must use a registered agent when registering your company. – You must use a registered address, as your company will be receiving government mail at this address. – You must file a tax return within six months of registering your company.
Summing up
Becoming an e-resident of Estonia and applying for all of the benefits that
come with this is a long, difficult process. However, once you are granted a
preliminary licence, you get the chance to operate your business in the real
world, in a country that is extremely advanced when it comes to the
blockchain sector. There are a number of things you should keep in mind when
going through the Estonian licensing process, such as using a registered
agent when registering your company, using a registered address and filing a
tax return within six months. If you successfully navigate the licensing
process, you’ll be rewarded with the chance to operate your business in the
real world and build a sustainable blockchain business.
