Country as a service becoming reality in Estonia
Computer Weekly, the popular technology news website has written an article, how the Estonian e-residency programme is gathering pace.
The Estonian government believes foreigners will create more companies in the country than Estonians themselves by 2022.
Since 2015, the small Nordic country has pioneered an e-Residency programme, which gives foreigners, such as entrepreneurs, easy access to government services.
Today, you don’t have to be Estonian to set up and run a company in the country. So far, 17,000 people have signed up to the programme.
This kind of outlook would be a shocking statement from a government official in any country in the world, other than Estonia.
Estonia, which was given observer status in the Nordic council in 1991, might be small, but it punches above its weight when it comes to IT in government, and is giving easy, secure access to services via an ID platform.
A step ahead in tech
Estonia, home of Skype and Transferwise developers, has done a lot to be at the forefront of modern technology adoption. It had paperless government meetings 10 years ago, and about 97% of the population hold smart ID cards to prove their identity when accessing online services.
The first to sign up were tech-savvy entrepreneurs from around the world, and the first 17,000 e-residents plan to establish some 10,000 companies.
“This is one-third of all companies in Estonia, and we are in a beta phase one year in,” said Kaspar Korjus, head of operations of the e-Residency team. “In five years, we will have more e-Residency companies than local companies,” he said.
One more hurdle
Today, all the essential business services are available for e-residents, and the last administrative challenge to becoming a truly location-independent country is the ability to open corporate bank accounts remotely for e-residents. This hurdle is due to be removed any day now. The laws were changed last year to enable this, but banks have taken their time to implement them.
Opening the country and its governmental systems and creating an online business environment has been a focus for the e-Residency team.
“We can say that we have a product and an offering for e-residents,” said Korjus. “We have changed more than 10 laws in that time, as well as a lot of processes, and we have built new services.
“You never have to visit Estonia. It is a matter of convenience. People can visit the country as tourists, but it should only be voluntary,” he said.
For example, Nasdaq, which operates a local Tallinn Stock Exchange, has launched an online shareholder meeting and voting system for e-residents.
A startup called LeapIn is the first to build a platform for e-residents to launch companies as well as run them, and it has seen a spike in interest since the service opened up.
Safe EU harbour for Brits
One of the first Brits to launch an e-company in Estonia using LeapIn was digital nomad Zack Young.
“I considered both Hong Kong and Singapore before Estonia, as they have a sound legal structure, but they were also complex to manage. I needed a solution which enabled me as a nomad to run a location-independent company,” he told Computer Weekly.
So far, around 1,000 Brits have become e-residents, and 55 of those have launched companies in Estonia. The rate is less than for many other countries. Korjus said there was clearly some pent-up demand as the implications of the Brexit process are yet to become clear.
“People are waiting for decisions on what is going to happen,” he said. “They see a great opportunity of still being able to live in the UK whilst running their EU companies via e-residency, without even having to visit the EU. This is perfect for them.”
Read the full article HERE
(Source: computerweekly.com; author: Tarmo Virki)