The financial & technology area is arguably the most rapidly evolving in modern times. With no lack of innovations to name, cryptocurrencies have drawn the most attention from the investment community as well as the mainstream. Not only investors, but the general public are further opening up to new ideas to think regarding money. This spike in interest has driven to the development and succeeding growth of the cryptocurrency business, whose active development has kept regulatory bodies as well as policymakers under pressure. The result is that companies, both huge and small, are excited for more a more pleasant atmosphere to develop and grow. This unique circumstance is what brings us to Estonia.

Timeframe: Around 4 months

Minimum paid-up capital: GBP 2,178.00

Overview

Estonia has a clear and convenient legal and tax background for cryptocurrency transaction and crypto wallet services provider companies (e.g. 0% corporate income tax). This small European Union nation of just 1.3m people is considered as one of the world’s most advanced digital countries, it is a generally recognized choice to jurisdictions like Malta, Gibraltar or Switzerland, only with lower costs and easier management. Our legal team helps with the end-to-end setup of blockchain and crypto business structures with a complete range of maintenance services, including licensing.

The following documents and information will be required in order to obtain Cryptocurrency exchange license:

  • Internal control rules of the company.
  • Internal procedure rules of the company.
  • Company’s website address.
  • Contact details of the person in charge.
  • Data on the compliance officer appointed for the prevention of money laundering and terrorist funding.
  • Data on the person who is in charge of the command of the international economic sanction and who has been selected by the undertaking in accordance with Estonian legislation.

Testimony of criminal records of a beneficial owner.

Notable features

General Information

  • Minimum one shareholder (private person or corporate entity). No limitations to citizenship or residency. For optimal service structure kindly discuss with our legal team.
  • At least 1 director/administration board member. Foreign citizens are acknowledged, no limitations to citizenship or residency. Can be the same as a shareholder.
  • No secretary nor local physical office needed (only local certified office and registered agent – we hold the license to provide these services).
  • Beneficial owners’ specifications are disclosed to the authorities.

Taxation

  • Virtual currencies (i.e. Bitcoin and altcoins) exchange services are not entitled to the VAT.
  • Services invoiced (i.e. sales invoices) in virtual currencies are entitled to regular VAT rules.
  • Corporate profits are not taxed until the profits are assigned as dividends.
  • Income tax 20% is imposed on whole dividends (calculated as 20/80 of the net profit). Special provisions implement for a 14% rate (for statutory entities).

Accounting requirements

  • Recording annual statement is necessary
  • Accounting records shall be conserved in Estonia
  • VAT and salary declarations are filed monthly if the business is listed for VAT purposes in Estonia and hires any employees.
  • Secretary – Not needed
  • Registered Agent – Local Representative is required if there are no EU citizens within the management
  • Registered office – Business need a local Registered office.
  • Company name
  • Letters: Estonian-Latin alphabet
  • A private limited company’s title shall carry the following outline of an appendage “OÜ” (“osaühing” [private limited company]). The abbreviation may solely be employed at the start or end of the company’s name

N.B.

  • Restricted links for company name: name of country and local administration bodies and agencies.
  • The words “riigi” [state], “linna” [city] and “valla” [rural municipality], and separate words which lead to the aid of a local government may be employed in the business name of a company only if the state or local government operates more than one-half of the shares of the business.
  • A company’s name shall not be hostile to great morals, as well as shall not be deceived with respect to the judicial form, area of activity or scope of activity of the project.
  • The registrar can refuse any name which it deems objectionable or opposite to the public interest.
  • The company name is restrained to be alike or similar that of an existing company.
Procedure

In order to receive a license, the next steps will be carried out:

  • The arrangement of application forms
  • Collection and analysis of reports in accordance with the law requirements
  • The inclusion of the organization
  • Bank account application
  • License application with the Regulator
Documents Required

If you are thinking of getting Obtain Estonian Cryptocurrency Exchange License, kindly provide the following papers:

  • Notarized copy of valid passport (each of Administrator/Director or Shareholder)
  • Notarized copy of proof of residence (e.g. Utility bill of each Director)
  • Salvadoran Tax Payers Identification Card- for each shareholder
  • Bank reference (of each Administrator/Director)
  • 2 Character reference Letter issued by professionals (of each Administrator/Director and Shareholder)
  • Complete CV dated and signed by the applicant (of each Administrator/Director and Shareholder)
  • Diploma of higher education
  • Notarized criminal record

In case the shareholder is a business, it is expected to provide:

  • Certified correct copy certificate of registration
  • List of stockholders
  • Copy of the last annual/financial return
  • Apostilled Certificate of Good Standing

Additional Due diligence may be appointed by Government Authorities*:

Original documents that prove the source of capital

All paperwork needs to be provided in English**

* Additional reports may be asked by the Registry or local Bank at any point to verify specific information

** If reports are not in English, then they must be brought by a notarized translation