In 2014, Estonia launched a unique program to help non-EU entrepreneurs gain access to global markets. Based on the most recent data, Russians and Ukrainians are among the major users of it.
Alexey Voronkov, currently the country manager for Ukraine, shared some statistics about the program as of January 30, 2018:
- The current total number of applicants is 32,590.
- The top three countries by applicant are: Finland, 3,586; Russia, 2,081; Ukraine, 1,886.
- The current total number of applicants who have incorporated companies is 2,969.
- Top three countries for incorporating companies are: Ukraine, 372; Finland, 300; Russia, 269.
What are the key benefits of the program for Eastern-European entrepreneurs? Gutsol, former Head of Global Growth for the e-Residency program, emphasizes it is access to global markets and ease of doing business without having a physical presence in Estonia.
Early in the program there were issues for non-residents of Estonia establishing local bank accounts. This was solved using companies with fintech banking solutions like the Finnish provider Holvi. E-residents can now accomplish everything online including establishing a bank account.
The program does not allow you to travel to Estonia or other European countries or give you residency in Estonia or a tax I.D., said Voronkov. But e-Residency does provide a digital ID card that can be used to conduct legal transactions online like signing documents and registering a corporation within Estonia’s legal framework.
In terms of the future, e-Residency could help facilitate ICOs. Estonia is considering launching an “estcoin,” or crypto utility token, with specific benefits for its users.
Other “country-as-a-service” programs are expected to appear in other countries. According to sources with knowledge of the matter, both Croatia and Azerbaijan are considering offering their own e-residency options.
