Gibson Watts Global: PEO & EOR Services

Why Estonia is the Ideal Destination
for Global Entrepreneurs

For entrepreneurs unable to secure a US startup visa, Estonia offers an attractive alternative in Europe. This digital-first country has emerged as a top destination for startups due to its business-friendly policies, innovative infrastructure, and access to the EU market. In this post, we’ll explore why Estonia is ideal for entrepreneurs and how partnering with an Employer of Record (EOR) like Gibson Watts Global can simplify global expansion.

Key Advantages of Starting a Business in Estonia

Estonia is a member of the European Union, offering businesses seamless access to the European single market. This is particularly beneficial for non-EU entrepreneurs who want to expand into Europe but don’t want the hassle of establishing a physical presence in each country. By registering a business in Estonia, you can operate throughout the EU with ease, gaining the freedom to trade, collaborate, and build your presence in this dynamic region.

The country’s digital infrastructure is another major advantage. Estonia has become a leader in digital governance, offering entrepreneurs the ability to register and manage businesses entirely online. Through Estonia’s e-Residency program, entrepreneurs can create a company and manage all aspects of their operations remotely. This digital-first approach makes it easier for business owners to establish a global presence without needing to physically visit the country, saving both time and money.

One of the most appealing aspects of doing business in Estonia is its favorable tax system. Unlike many countries where businesses face heavy tax burdens on profits, Estonia taxes only distributed profits. This means that reinvested profits, those used to grow the business—are not taxed. This unique system enables entrepreneurs to grow their businesses more effectively by keeping capital within the company and facilitating faster scaling without the immediate pressure of tax payments.

Estonia also offers a robust startup ecosystem. With one of the highest per capita rates of venture capital investment in Europe, the country has established itself as a hub for innovation and entrepreneurship. The supportive environment is conducive to new business development, and there is ample opportunity to secure funding and collaborate with other startups. Whether you are looking for initial seed funding or seeking to scale your venture, Estonia’s dynamic startup scene provides numerous opportunities for entrepreneurs.

Estonia makes starting a business straightforward, with a fast and affordable registration process. Entrepreneurs can register their companies online, often in just a few hours. The minimum share capital requirement is just around €2,500, which can be deferred, reducing the upfront costs for entrepreneurs. This low barrier to entry makes Estonia a particularly attractive option for startups and small businesses looking to enter the European market.

The country’s legal framework is stable, and it upholds the rule of law, providing a secure environment for businesses. Estonia ranks high in ease of doing business and offers a supportive regulatory environment that encourages entrepreneurship. The lack of bureaucracy and red tape means that entrepreneurs can focus on running and growing their businesses rather than getting bogged down in administrative hurdles.

How to Establish Your Business in Estonia

Step 1: Test the Waters with the Digital Nomad Visa
 Before committing fully, entrepreneurs can explore Estonia using the Digital Nomad Visa. This visa allows you to live and work in the country while evaluating the business environment and startup community.

Step 2: Register Your Business via E-Residency
 Once you’re confident in the market, you can register your company remotely through the e-Residency program. This digital ID allows you to access the European market, manage your business, and handle administrative tasks from anywhere in the world.

Step 3: Scale with the Startup Visa
 If you’re ready to expand and build a team in Estonia, the Startup Visa allows non-EU founders and their employees to move to Estonia and gain access to the broader European market. This visa is designed to attract innovative entrepreneurs and global talent.

Step 4: Long-Term Residency Permits
 For those seeking long-term relocation, Estonia offers residency permits for founders and key team members, giving you the freedom to live, work, and grow your business within the EU.

How Gibson Watts Global Can Help

It’s no secret that competition for top talent is fierce in the tech sector. And with the pandemic having ushered in a new era of remote work, companies are no longer confined to hiring in their home country.

When you’re looking to bring in tech talent from abroad, it’s important to take into account various factors to ensure a successful and compliant hiring process, such as local labor laws, immigration regulations, and cultural differences.

Considering hiring tech talent internationally but unsure how to get started? Our PEO/EOR services will help you build your international tech team with confidence.

What is an EOR?

An Employer of Record (EOR) acts as a third-party employer on behalf of a business, handling all HR functions, including payroll, taxes, risk management, and employee retention. For businesses expanding globally, an EOR provides a seamless solution to manage local compliance without the need to establish a legal entity in each country.

Why Partner with Gibson Watts Global?

At Gibson Watts Global, we specialize in providing people-focused global employment services. With over 20 years of experience, we help businesses streamline their international expansion by managing administrative tasks, allowing you to focus on what matters most—growing your business.

Human-Focused Approach

What sets us apart is our emphasis on people. We prioritize employee satisfaction, which we believe is crucial for successful market entry and long-term growth. By building strong relationships with both our clients and their employees, we ensure smooth communication and high retention rates.

Reach out to us today to learn more about how we can support your international expansion.

 

To learn more about Estonia take a look our our Estonia Country Guide

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Written by Gibson Watts Global Relationship Manager, Hollie Parker

With over 6 years of experience as a Relationship Manager, Hollie specialises in building and maintaining strong connections between clients, employees, and local teams. Holding a 2:1 Honours Degree in Accounting and Finance, Hollie’s expertise combines financial knowledge with a deep commitment to customer service.

 In her current role, Hollie not only prioritises an exceptional, human-led service, but also plays an active role in the company’s marketing activities. Hollie collaborates with external partners on innovative projects, and contributes to the creation of industry-relevant content that informs and engages.

 

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