Since Bitcoin’s sudden surge in value last year, lots of entrepreneurs have started cryptocurrency- and blockchain-related businesses. Health blockchain startups like Nanovision are going to completely revolutionize global healthcare, and entrepreneurs in every industry are using ICO campaigns to raise money for their startup costs. Cryptocurrency is everywhere in the news. Business leader Brian Magierski is blogging about blockchain on Medium, and cryptocurrency blogs are being read on the daily by financial experts. So if you’re looking to start a cryptocurrency business, it’s a great time to get started.
But something else to consider is starting it in Estonia. This country is much more friendly to alternative businesses than the US is–and this is just one of the many reasons. To learn more, read on.
1 Legal framework available
If you’ve taken a look at how to start a cryptocurrency business in several countries, it becomes clear quickly that many countries have no processes set up for authorizing this kind of venture. It’s a terrifying thought that after all the work of setting up a business, you could end up hitting a legal wall that forces you to leave the country and abandon it. But in Estonia, you can apply for an activity license for the provision of financial services.
According to Comistar, “As a foreigner, you have to be able to prove that you hold no criminal offenses by submitting your criminal record together with the application of the Financial Services activity license.
Additionally, description of the KYC/AML procedures of the company has to be submitted together with the application. Comistar can help you with drafting the KYC/AML procedural rules. Once the application is submitted, you will receive an answer within 30 days. The state fee is 345€.”
So instead of having to stress about the legal situation with your new cryptocurrency business, you can focus on important things like making the right industry contacts and working on your website’s about us page. While it’s true that 96 countries have made Bitcoin unrestricted, Estonia is one of the best for your company.
2 E-Residency option
According to Medium, “Estonia is open to entrepreneurs from around the world and is regarded as one of the world’s most advanced digital nation. Anybody who wishes to start a business in Estonia can get a so-called e-residency to access all electronic services offered by the government. E-residency provides the possibility to establish a company online, manage it remotely and achieve location independence. E-Residency program saves time you would otherwise have spent on bureaucracy, tax authorities, and incorporation.”
So if you weren’t sure about moving all the way to Estonia, you could still run your cryptocurrency business from there. As long as you can run it remotely, you should be fine. However, if you’re looking to mine cryptocurrencies, then you can still move there, and save money considering that the average price of electricity for Estonian households was 12.07 euro cents per kilowatt hour in the first half of 2017.
3 Beneficial tax policies
In addition to the great reasons so far, there’s yet another reason to set up shop in Estonia, for any business leader. According to Data Driven Investor, Estonia is ranked “14th on the ‘Paying Taxes’ Doing Business’ ranking (the 5th amongst the European countries), [and] has one of the most competitive tax environments in the continent. Estonian tax burden is very light: the current corporate income tax rate ranges from 14 percent to 20 percent. The reinvestment of profits further lightens it: corporate income tax is due only if (and when) dividends are distributed.”
VAT doesn’t apply to transactions with a cryptocurrency, which is a relief, especially for cryptocurrency business leaders.
4 Low operational costs
Finally, as you can imagine, Estonia is quite a cheap country. This means that setting up shop is going to cost you barely anything. In addition, the simplicity of setting up a business, as compared to other countries, makes operating a business not only easier but cheaper.
According to E Estonia, “Modern e-solutions make setting up and running a business in Estonia quick and easy. Estonian solutions like digital signatures, electronic tax claims, e-Business Register or the availability of public records online have pared bureaucracy down to a bare minimum and facilitated an environment where business is easy.” Even registering your company with a notary only takes two to three days, which is incredibly fast compared to other European countries.
As you can see, Estonia’s the place to be for anyone looking to start a cryptocurrency business.
What other countries are you considering for opening your cryptocurrency business?