Estonia is the greatest jurisdiction on the planet to make an ICO because of its friendly controls, e-government, and taxes. There are approximately 200 million dollars accumulated via ICOs that are created here.

In Estonia, ICO regulation is not specified nor discussed in the national act. Being an EU member state, the method of cryptocurrency transactions taxation is governed by the national legislation of EU members depending on the type of cryptocurrency transactions. As a rule, for the purposes of taxation digital currency is recognized as an intangible asset or commodity.

Overview

Estonia is very generous on Crypto currencies and many project find their way here. We have negotiated several ICO project and have expertiese know how. However, you should have to examine some key issues, before you choose Estonia as your home for ICO.

Every ICO is different and should mapped separately. We are qualified to offer you with fair costs, a preceding legal opinion, on your ICO to bypass additional future costs. The legal evaluation will be based on your White paper/Company plan. We can further assist you with Terms and Conditions, Cookie and Privacy policy.

The Estonian Finacial Superrvising Authority (FSA) has granted following guidelines for for businesses employing with virtual currencies and ICOs. In case the token will give voting and engaging right in profit distribution, the token will be viewed as security – a security token. Distributing a security token indicates, that the same responsibilities appear for issuer, as on IPO. The IPO candidate must be registered and certified by Estonian Financial Supervision Authority (FSA).

Notable feature

ICO company’s structure

  • minimum one Shareholder (a person or legal entity, no limitations with views to citizenship or residence)
  • minimum one Director (foreign citizens are allowed)

Confidentiality

  • Director’s data – part of the government record
  • Shareholder’s data –  part of the government record
  • Beneficial owner’s data – published to the Authorities

Registered Agent – Local Representative is needed if there are no EU citizens within the management

Registered office – Local Registered office is needed

Company secretary – Not Needed

Company name

  • Language: Any
  • Letters: Roman alphabet.
  • Must be distinct from other previously recorded company names and trademarks
  • Cannot include such words as Assurance, Insurance, Bank, University, etc. without receiving a proper license.
  • Name indicating any relationship to local, state or federal government are commonly prohibited.

Timeframe

14 days + delivery time for the courier

Taxation

  • Estonian organizations and affiliates of foreign entities are subject to 20% income tax only in regard to all shared profits (both original and deemed)
  • Starting from January 1, 2018 – the CIT charge on regular profit allocations will be reduced to 14%, although only if profits are paid to legal entities

Reporting

  • Recording annual statement is essential
  • Accounting reports shall be kept in Estonian
  • VAT and salary statements are need to be filed monthly

Advantages

  • Possibility to obtain e-residency and get entrance to all local e-services.
  • 0% tax on retained and reinvested profits.
  • 14% tax on shared profit.
  • No obligatory representatives are expected, Director can fulfill his duties without taking actual salary.
Procedure

Primary steps

  • Asking preferable ICO company names from the side of customer;
  • Investigating the availability of chosen ICO company names using Estonian and EU databases;
  • Gathering essential due diligence from the client;
  • Publishing the receipt for our services after the selected Company name is confirmed to be available.

Incorporation of company

  • Sending the client relevant data and papers and collecting the important information;
  • Preparation of the full set of business establishment documents, ICO company White Paper and legal view on its adaptability with Estonian law, and sending the package of the records to the client for endorsement and signing;
  • Filing the reports to the Commercial Register on client’s behalf;
  • Covering state fees.

Opening the bank account

  • Estonian law permits to open account in any foreign jurisdiction. We can help you with the opening of bank account in any preferred jurisdiction between those we offer. Kindly note that bank requirements and time frame differ from bank to bank.
  • Transmission of documents

Hard copies of business incorporation documents will be mailed to the location given by the client via courier.

Document Needed

In order to receive license, Startup Formations will fill all mandatory application forms and further obtain apostilled corporate records.

For all Director and Shareholder:

  • Approved passport copy
  • Approved proof of residential address

If Shareholder is legal entity:

  • Original records of Good Standing
  • Original record of Incumbency

In order to start a bank account for Estonian ICO company, you will be obligated to provide the next papers:

  • Approved copy of a valid passport of each Shareholder and Director.
  • Proof of address like recent utility bill of each Shareholder and Director.
  • CV of each Director and Shareholder
  • Optional: Bank reference of each Director
  • Optional: Legal reference

*If original papers are not in English or Estonian, the records must be appended by a notarized translation (in English or Estonian).

*Additional documents may be asked by the Commercial register or local bank at any time to confirm specific information.

*When Shareholders are legal bodies, it is expected to present apostilled set of corporate records and certificate of Good Standing.