Estonia has been on the news in the past couple of years for introducing their flagship e-residency. E-residency is was launched by the government of Estonia in December 2014. This has become a ground breaking initiative for entrepreneurs around the world. Now people around the world can run a EU company without residing there. The main advantage is the fact that they can not have access to the EU market through Estonia. The E-residence program was created for mainly freelancers and online startup entrepreneurs. Now they can run a EU business without physically living there. It gives the holders of the e-residence the ability to register a business and open a bank account in Estonia. The whole idea is to have access to the European market. People prefer banking in solid jurisdictions such as the United States and the European Union.
E-residence for people living outside of the European Union
For entrepreneurs that don’t live in the European Union but want access to the lucrative market this e-residence has its benefits. For example they now can offer their online services such as digital marketing and software development to customers in the European Union. They can also take advantages of the low taxes in Estonia. Estonia has one of the most advanced digital platforms in the world. People can even cast their votes online. Internet is also a constitutional right in Estonia.
Even if the e-residence is an upgrade in terms of innovation it doesn’t come without its own limitations. Some of these limitations mean that entrepreneurs have to have a business that is designed for online functions. The e-residence card cannot be used as a identity document. It also cannot be used by people with previous financial crimes.