AMAs November 15, 2020

I'm an e-Resident and an Estonian company owner AMA

Jan Klosowski @deltabadger

Hi guys,

I'm an e-Resident for more than two years. Last year, I opened a company in Estonia remotely. This year in June, I moved to Tallinn, and besides being a UX design contractor, I build my own product. I curate a small community around it on Telegram and have some regular sales growing slowly.

From time to time, I see some e-Residency related questions. I'm here to answer all of them :)

  1. 2

    Hi Jan,
    How much does it cost in total to run the company there? (accounting and other paperwork, virtual office, local director, etc?)

    1. 2

      The cheapest you can go is probably Xolo, and their pricing is pretty transparent. It works fine for a simple type of business, so definitely check it out. Unfortunately, that wasn't enough for me. When I considered them, they told me it would not work for any trading (crypto/stocks) or accepting Bitcoin payments. Now, you can accept BTC, but it will be immediately converted to EUR what doesn't work for me either.

      So I had to find a regular accounting company (I'm pretty happy about them.) The pricing was/is as follow:

      • incorporation ~950eur
      • virtual office address ~400eur/y
      • annual tax declarations ~400eur/y
      • accounting ~70-120eur/m

      A few times I needed something extra, e.g., help with registering my residence in Estonia, etc. In every case, it was ~120eur.

      (Also, the mandatory shared capital is 2500eur, but you don't have to introduce it to the company until you want to pay yourself dividends or sell your business, so it's not an issue at the beginning.)

      It really depends on your case, e.g., if you're paying VAT, need a virtual office, etc. With Xolo Go, you can even start invoicing people without having a company (no fixed fee, just 5% of your sales.)

      When it comes to the director – do you really need it? If it's for tax purposes, it doesn't work anymore. You're the UBO (ultimate beneficial owner), and a hired board member will not do much. I don't have any. I own 100% of the company, and I'm the only board member.

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