In a world that’s rapidly digitizing, Estonia stands at the forefront with its groundbreaking digital e-Residency program, allowing individuals from anywhere, including India, to access its government services and start businesses digitally. Estonia was the first country to offer e-Residency, starting in 2014. It remains the most popular programme of its kind for ambitious entrepreneurial people.The CSRUniverse’s consulting editor Abhishek Jha was in Tallinn the capital of Estonia recently and had a chance to know the nitty-gritty of this e-residency programme during an interview with the IT and Justice Minister of Estonia, Liisa-Ly Pakosta herself, who is also overseeing this innovative E-residency programme.
Scroll down to explore how this digital revolution is shaping global business pathways and what it means for ambitious Indian entrepreneurs:
TheCSRUniverse: Estonia has become one of the centres of E residency, or E visa, where one can apply for E residency and they can establish their company. So how does this happen? We're joined by the IT Minister of Estonia and she will describe how this entire E-residence works and how Indian businessmen may benefit from this scheme.?
Liisa-Ly Pakosta: Although Estonia is a small country, we are part of the European Union. So it means in a part of our European Union single. All our government services are digital. So these government services can be used by whatever place in the world including of course your wonderful country India. So when somebody from India wants to do business in Estonia, including the European Union. So the easiest way to do this is to become an E resident of Estonia. It's quite easy, I would say, you don't have to come over here physically. You can do it digitally. And you get then an E citizenship of Estonia. You get the digital personal number. And you get then an E citizenship number. And with this digital personal number, you can get access to all the digital services, including, for example, starting a company in Estonia.
TheSCRUniverse: …So with a single market in Estonia, one can have access to all the European markets unhindered?
Liisa-Ly Pakosta: So the basic value in the European Union is that we have a borderless economy, single market. So that means that it's built on shared rules, but also on shared possibilities. So when you become an e-resident in Estonia, and when you start a company in Estonia, you can run the business with this company, Portugal, Germany, Italy and in Estonia, likewise, because it's all a single market.
The CSRUniverse: minister, any specific companies or type of business which people can do with this ?
Liisa-Ly Pakosta: For example, it's easiest to enter Estonia doing IT business, because the market here is very advanced, but also we physically have extra possibilities for those who want to start working in the IT sector. So to come to Estonia, and if you have a professional understanding of IT, then it's much easier to come here.
The CSRUniverse: So from an Indian business person's point of view, he has a company in Estonia by E residency. How does he pay taxes? Does he have any obligation to the Indian government, or will he be paying only to the Estonian government? How does it work out?
Liisa-Ly Pakosta: There is an agreement between the Indian government and Estonian government to avoid double taxation. So when a company is already working and there will be taxation issues, I would suggest that the company looks up the most profitable possibility. And so Estonia and India, having this avoidance of double taxation, it would be very easy to pay all the taxes in Estonia, because we also have a fully electronic tax system. It's very easy to declare your taxes.
TheCSRUniverse: And also, how many Indians have so far availed this facility, and what's the cost or the fee of this residency if somebody wants to obtain this.?
Liisa-Ly Pakosta: We have already more than 1000 companies started by e- residents from India. Now, about the fee, I actually have to look up. I don't think it's a big one. I think it's like a state fee, which is nominal.
The CSRUniverse: Apart from this entire business, my question is, in terms of cyber security and cyber technology. Where are India and Estonia collaborating in terms of cyber security, and what are your plans with India?
Liisa-Ly Pakosta: Cyber security is an area where no country can be successful alone, so you need good cooperation with other like-minded countries. And luckily, India and Estonia have good cooperation actually here. So our ministers of foreign affairs have regular meetings on cyber security issues. But of course, we would like to go further on also exchanging specialists, exchanging more experiences, but also doing research on development projects together.
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