Many cryptocurrency users find Estonia a perfect place for starting business and registering a company for numerous reasons. In Estonia there are many Bitcoin ATMs, cryptocurrency startup companies and computer system network providing buying and selling virtual currencies. Estonia is chosen to hold an ICO – Initial Coin Offering industry, and the number of projects related to cryptocurrency is bigger than in other countries.
Why you should incorporate your cryptocurrency company in Estonia
1. Legal regime
In comparison with other jurisdictions, for example Malta, Switzerland, Australia, currently in Estonia it takes only 30 days to get cryptocurrency license. Even after changes that will occur next month in legislation, it will be possible to obtain a license within 3 month, that is much faster than in above mentioned jurisdictions.
2. Regulators of high quality
Estonian regulators are very easy to communicate with. That means a lot since you need to have direct communication with them very often. Blockchain companies find affable attitude of regulators very important and for Estonia that is a huge advantage.
3. E-residency program of Estonia
This ambitious and innovative program is launched by Estonian government as part of effort to build a digital nation. It provides entrepreneurs from all around the world to establish a company that will be locally independent and managed remotely. In any other country this kind of process can be prolonged due to complicated bureaucracy, taxation and integration, but not in Estonia.
4. Convenient tax policy
Among the Organization for Economic Co-operation and Development (OECD) Estonia has the most competing tax environment. The tax anxiety is almost imperceptible and all tax duties and obligations can be drastically cut by assets reinvesting. The income from ICO isn’t taxed unless it’s distributed as dividends. That is because the Estonian Income Tax Act can’t make a difference between ICO and some regular investment. That is why in Estonia virtual currencies are not subjects to Value Added Tax (VAT).
5. Costs of starting a business are low
in Estonia to register a licensed cryptocurrency company, charter capital of the company needs to be only 2.500€ for limited liability company. In comparison to other popular administrations such as Switzerland or Singapore the costs in Estonia are very low. Some people who can’t afford to register their projects in Switzerland may find it much more appealing to register them in Estonia and enter the EU (European Union) or EEA (European Environment Agency) anyway.
Even after changes that will occur next month in legislation, share capital of 12 000 € is not that much. (More about changes in crypto regulation in Estonia).
6. Cryptocurrency market
In Estonia there are more than 1000 cryptocurrency/blockchain companies that makes Estonia one of the leading countries for cryptocurrency and blockchain business. There are many networking events taking place on blockchain and cryptocurrencies, so, you can be up to date in this field and even build fruitful joint ventures with other entrepreneurs just participating these events.
7. Multilingual environment
Official language is Estonian, but most people, state departments are available and speak English. Moreover almost 30% of population speak Russian, which allows you to access near 250 000 000 potential customers in CIS markets just hiring local staff.
Company formation is a very important decision that should be carefully and strategically planned. You should ask for advice from professionals and people who know exactly what is best for you.
There are clearly a lot of benefits to incorporate your business related to cryptocurrency in Estonia but it’s important to carefully consider everything. Making professionals to deal with this process will make it easier and more safe. They will provide you with all information that you may need and you will know exactly what your legal and compliance obligations are.