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Analiza Pathak
Born in Guwahati, raised in Mussoorie and Delhi, She grew up reading magazines more than textbooks. She is an experienced writer/editor and has shifted focus to various aspects of communication. Her a ... Read More
Investment banker Sarthak Ahuja is encouraging Indian business owners who want to grow internationally to look towards Estonia, a small country in Europe. In a viral LinkedIn post, he shared that for less than Rs. 60,000 and just four hours online, anyone can open a European company and become an e-resident of Estonia and this is all without leaving India.
Ahuja wrote, “Mukesh Ambani, Bill Gates, and Barack Obama have all taken e-residency of a European country,” highlighting Estonia’s open and modern digital economy.
“Anyone who wishes to do business in Europe or build a tech company anywhere in the world must consider setting up a company in Estonia…The company can be set up all online within 4 hours, in less than Rs 60k sitting anywhere in the world…In addition, the country makes you an e-resident of Estonia and gives you an e-residency card which you can pick up from the Estonia embassy in India itself…,” he further said.
Estonia’s e-residency program started in 2014. It allows people from anywhere in the world to start and run a company online, with the benefit of being trusted as a European Union business. For Indians, e-residency costs less than Rs. 40,000 and comes with benefits like no corporate tax on profits you keep in the company, easy business setup, and access to European markets.
According to Ahuja, the entire process is online and can be done quickly. Once approved, the e-residency card can be picked up from the Estonian embassy in India.
The financial benefits of starting a business in Estonia are very appealing. There’s no corporate tax on profits as long as the money is kept inside the company. A flat 20 per cent tax is charged only when you take out profits as dividends, and there’s no double taxation.
Estonia also keeps things simple: VAT, income tax, and corporate tax are all set at 20 per cent. You only need to register for VAT once your business earns more than €40,000 in revenue, the report further said.
But it’s not just about low taxes. Estonia offers a fully digital system that makes it very easy for business owners. The country provides free public education, healthcare, and transport, and the internet is considered a basic right. For a country with just over 1 million people, Estonia also has strong access to venture capital funding, making it a great place for startups.
Estonia’s tech scene is booming. The country already has 12 unicorns (startups valued at over $1 billion), and more than 2,000 tech entrepreneurs from around the world have become e-residents, building European businesses without having to move there.
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