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Ask HN: Have You Incorporated in Estonia?
7 points by pier25 6 days ago | hide | past | web | favorite | 8 comments
Would you do it again?

I have one company there. I'm planning a migration to a different arrangement, but depending on what you are trying to do it might be OK.

If you want to be incorporated in the EU and are from an EU country where the government UX sucks, it might be worth it.

If you are a B2B software company that frequently hires contractors in the EU it's better to have the company outside the EU as there's less paperwork involved. Also tax reasons.

How easy was incorporating, getting a bank account, doing taxes, etc?

I'm from the EU and starting to work solo on a SaaS this year and probably release it next year. I don't plan on hiring people short term.

You need an ID card to do most things without going there or using snail mail. You can go there and get either a temporary residence card, or get an e-residence card online, which costs around a 100€ and takes about a month to get. You can pick it up at an embassy.

Company registration is done through a web app where you just select from drop downs or choose numbers, like how many shares are needed for certain votes etc. I think it was around 250€ and was approved in a day or two. A forwarding address for the company is about a 100€.

You have to visit the bank to open local accounts. You can get an account with a EU-wide challenger bank if you don't want to go there just for this. No real benefit to having a local account unless you want financing for local projects or something along those lines. The banks charge you more or won't open accounts if you are a foreigner or e-resident.

Taxes and reports can be done online. If the company is dormant or doesn't make a profit it's very simple. Otherwise you can get an accountant.

No idea about employees and payroll but unless you want to employ locals it's not very interesting.

I haven't and have yet to see any advantages to do so.

It's fast and cheap.

For example freelancers in Spain (called an "autónomo") have to pay the state about $300 USD every month regardless of how much money you make to be able to produce invoices and charge for your services.

Of course there are also taxes when you do make money. Not sure about the percentage now but when I lived there it was about 40% of your profit.

The Spanish system absolutely boggled my mind when I lived there. I also remember the "retenciones" system where your client retains a percentage of your payment for the government to collect as upfront tax (like a secondary VAT for income tax). I always assumed the complexity and untrusting nature of the tax system drives a lot of people to evade taxes partially or completely.

AFAIK the "retenciones" tax is for employees, not when paying for a service/good and you receive an invoice from a freelancer or another company.

me too. Is there any independent, yet reliable, source of valuable info about this ?

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