Borders, boundaries, and politics are never set in stone, and only a few years ago the UK was part of the largest global trading bloc. As well as freedom of movement, it was easy for British entrepreneurs to trade without tariffs, across the EEA and beyond.
We know what happened there, and it is one of many geopolitical changes that have impacted on our region in recent years. However, there is still an excellent pathway for enterprising Brits to collaborate and do business internationally, and keep a digital presence in the EU at the same time.
Business without borders for Brits
While technology has theoretically made things easier to work internationally, like multi-currency fintech and open banking standards, politically the world has become more complex and fragmented in other ways beyond Brexit.
However, an innovative solution has emerged from Estonia that provides a wealth of opportunities: e-Residency. This program offers a wealth of advantages and opportunities to British entrepreneurs, freelancers and start-ups, making it an attractive and streamlined option to set-up a company online and manage it remotely, from the U.K. or anywhere else in the world.
Estonian e-Residency is a government-issued digital identity available to anyone globally. It allows non-Estonians to start and manage a location-independent business online, while enjoying access to EU markets.
The program, launched in 2014, has been instrumental in fostering a digital nation, welcoming entrepreneurs from all over the world. So far from reinforcing political isolationism, British e-Residents of Estonia are part of a global community of innovators and creators which is now well over 115,000 strong, with over 30,000 thriving e-Resident businesses. Of these, 4,675 UK e-residents have established 1,153 OÜ's (Ltd’s), meaning that British entrepreneurs rank 8th in the national league table.
Benefits of Estonian e-Residency for British Entrepreneurs
Access to the EU Market
Since Brexit, British businesses face many barriers in accessing the EU market. Estonian e-Residency offers a solution by enabling entrepreneurs to establish an EU-based company. This setup helps maintain seamless trade and operations within the EU, bypassing many of the restrictions and tariffs imposed by Brexit.
It also means that these business owners can access EU startup funds, grants, support, and advice, to grow their business across the bloc, and in one of the world’s strongest and most stable currencies, as well as, accessing collaboration opportunities with the global e-residency population, of course.
Ease of Business Setup
The process to obtain e-Residency and set up a company in Estonia is straightforward and efficient. The application is done entirely online and remarkably easy. Getting your e-Residency ID card takes between 4-6 weeks, and you can collect it at the Estonian Embassy in London, or at any other of their 50+ pick-up points across the world.
The digital-first approach of Estonia makes it a hassle-free experience, contrasting sharply with traditional bureaucratic processes, e-Residents can carry out most procedures online, significantly reducing the administrative burden. For example, the company registration process takes 1-2 business days - comparable with business formation in the UK at Companies House, but unlocking a much broader global stage of operations.
Cost-Effectiveness
Starting and running a business through Estonian e-Residency is relatively cost-effective. There are no requirements for a physical office in Estonia, and the administrative costs are lower compared to many other EU countries.
This aspect is particularly advantageous for freelancers and small business owners operating on tight budgets, and the unique fiscal advantage of 0% Corporate Income Tax on reinvested profits makes Estonia a particularly attractive place for innovation and business growth.
Advanced Digital Infrastructure
Estonia boasts one of the most advanced digital infrastructures in the world.
That means e-Residents can use various digital services, including signing documents, business banking, encrypting files, and declaring taxes online. This digital convenience streamlines business operations, making it easier to manage a company from anywhere in the world, via the security of public-private key signatures, which can even be operated from a mobile device.
Reputation and Trust
Estonia is renowned for its transparency and trustworthiness in business practices. Having an Estonian-registered company can enhance credibility and trust with clients and partners within the EU and globally. The country's stringent regulations ensure that e-Residents adhere to high standards of business conduct, and your future trading partners and customers know that each e-Resident has been vetted by the Estonian Police and Border Guard before commencing business operations.
Opportunities for Freelancers
Freelancers stand to gain significantly from Estonian e-Residency. The programme provides a robust platform to offer services across the EU without the need for a physical presence.
With the ability to invoice clients in the EU, freelancers can maintain competitive advantages and continue growing their client base within Europe and beyond.
English language support and information
The digital infrastructure of Estonia is provided natively in 3 languages (Estonian, Russian, and English), so you are not dependent on translation in browser for statutory information, and superb business English is written and spoken by financial and business services across Estonia.
In fact, it’s easy to forget you’re doing business in a foreign country sometimes!
As a British freelancer who faced uncertainties post-Brexit, I found Estonian e-Residency to be a lifeline - you can reach more about how I manage my Estonian business as a British freelancer in Spain right here.
Setting up my company in Estonia was remarkably smooth, and the ability to operate within the EU market without facing new trade barriers has been invaluable. The digital tools provided through e-Residency have simplified my business processes, allowing me to focus more on my clients and less on administrative tasks. For freelancers and small business owners looking to navigate the new landscape effectively, e-Residency provides a practical and innovative pathway to continued success.
By embracing this opportunity, British entrepreneurs can ensure their businesses remain competitive and resilient in the face of changing economic conditions, whatever the geopolitical future holds.
How to get started with your Estonian e-Resident Enterprise
GroüHub is part of the specially selected e-Residency Marketplace of service providers, who guide and support aspiring entrepreneurs through the onboarding process, and then provide the necessary local office representation, accounting support and digital tools for you to operate your business smoothly and without borders.
We will steer you through the process of obtaining your digital ID in Estonia, forming your company, setting up banking and other services, and interacting smoothly with the Estonian digital infrastructure, as you scale and grow your business.
It starts with a simple discovery call, to explore the possibilities - book HERE!
We offer you to book a personalized advisory call with our expert, who will listen, understand, explain and clarify your questions about e-Residency and doing business in Estonia.
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