Why Estonia?

 Estonia is kickass country to register your startup in…

👉🏼 Firstly, the tax structure is as simple as 20-20-20.

There’s 20% Income Tax, 20% Corporate Tax and 20% VAT

The VAT applies if your annual turnover is more than EUR 40k = INR 36L

👉🏼 But here’s the main reason. If the profits of your company are not withdrawn but retained in the company for growth, there are no taxes on the profit.

It only gets taxed when you distribute those profits to the shareholders. This is insane!

👉🏼 Okay there’s more. No dividend tax, so no double taxation either.

There is just a fixed monthly expense paid to the government which is like a Provident Fund and Pension Fund, which you pay in other countries anyway.

👉🏼 Ease of Business: The country has a zero bureaucracy policy…

👉🏼 You can set up a company in less than 4 hours within EUR ~400, all online. That’s in less than INR 40k

👉🏼 Banks share real time information with the tax department and there’s a single accounting software for all transactions across the country.

So, your tax returns actually happen in less than 20 minutes, all automated, because all the data is already pre-entered and validated.

👉🏼 The owner of the company can be a non resident of Estonia… and both the owner and the operator can be the same. They also have a provision of Electronic Tax Residency in case someone is interested

👉🏼 Now forget business, let’s talk about the social benefits for people actually living there…

👉🏼 Free public education, free public health and free public transportation

👉🏼 Moreover, Internet access is a fundamental human right

👉🏼 Okay, now which kind of business should register in Estonia? The country and the government prides itself in being a digital leader where they claim that all their public records are on a safe digital blockchain.

And anyone wanting to do e-commerce or other tech business in Europe should consider setting up base here for the sheer operating ease and tax benefit.

However, if you have no business in Europe, um, it’s just good info to know for your next global business idea, but don’t go around registering a company just like that.