4
2 Comments

Estonia vs UK for company as a EU citizen?

I'm in the EU, trying to decide which would be more beneficial for me, forming a company in Estonia or UK.
The previous topic here in IH helped a lot:
https://www.indiehackers.com/forum/llc-in-delaware-for-eu-citizen-end-to-end-2f7593f164

Has anyone researched the pros and cons of each?

I've been hearing various opinions on opening a bank account in the UK. Some say that with an address (I have a friend living there) it's easy to open a bank account and some say that it's very difficult and that you shouldn't attempt forming a company in the UK unless you're a UK resident.

Estonia has 0% corporate tax but the whole social tax thing seems confusing to me.
“The good news is: your employee salary is not taxed at all, as long as you are working outside of Estonia. However, for the board member salary, you are supposed to pay two taxes: the Income Tax (20% of the gross amount) and the Social Tax (33%) of the salary plus the income tax.”

Opinions/thoughts? Which one would you go with?

  1. 2

    For opening the UK bank account, it IS easy to do with an address in the UK. You have to prove you reside at that address though, usually through a utility bill with your name on it. If you don’t actually live there that’s pretty much impossible.

  2. 1

    Your country of residence.