• Mardo Soo

Basic requirements to start Cryptocurrency company in Estonia

Updated: Jan 8, 2020

Cryptocurrency business surely is one of the most successful businesses that anyone can indulge in. But in case you wish to start this business in Estonia, there are certain requirements that need to be fulfilled. Any businessman who wishes to start it must initially obtain a Cryptocurrency License in Estonia. This license is responsible for recognizing the transactions and then helps to convert them into fiat currency. Also, the license will help you not only to receive funds from third parties, but also you will be able to transfer them as well. In order to understand more about how to get a license, you need to dig further into this article.

Basic Requirements for obtaining the Cryptocurrency license

In order to be able to apply for a license, the Estonia company formation must be fulfilling some prerequisites. We are mentioning these requirements below to offer you an idea about the things that need to be done.

First of all, the company applying for the license must have at least the authorized capital of about two thousand and five hundred Euros. Well, there are no strict rules about having any kind of capital deposit, but it is recommended for you to have around 2,500 Euros deposited in your company's bank account. If you happen to face any kind of problem to open the Estonia company formation account, you can always seek help from the internet.

The basic structure of the company applying for the Cryptocurrency License should be as follows.

There should at least be one shareholder in the company. The council of the company must consist of three or more members on the panel. There must be a board with more than one member on the team. The company must have a contact person, who is to be held responsible for any kind of communication with the state authority. Along with this, that person must also be capable of International financial Sanctions and AML. The shareholders of the company also are provided with the right to act as the board members as well. They can take up both the responsibilities simultaneously. The person linked to AML must be able to keep an eye on the activities of the customer. This is to make sure that no kind of money laundering or terrorism financing is taking place. In case any kind of suspicious activity is noticed by the company having Cryptocurrency License in Estonia, the next step for them is to notify the authorities responsible.

Taxation process of companies dealing with Cryptocurrencies

The taxation policies for the companies with cryptocurrency licenses are mentioned down below.

Twenty five percent taxes, in the case of dividend, withdraw. It is totally on the company how they wish to divide their dividends.

Thirty three percent is the social tax that is to be paid by the company on the personnel.

The income tax is about twenty percent on the profit margins. Basic requirements to start Cryptocurrency company in Estonia

Final words

All the basic requirements in order to gain the Cryptocurrency license is mentioned in the above article. In case you need any kind of filling help or have any doubt with something else, you can always look forward to seeking help from the internet. Also, make sure that everything with your Estonia company formation is up to date, and all your documents are well maintained before you file for the license application in the state related to Cryptocurrency.

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