Mistakes To Avoid When Starting Your Business in Estonia
In recent years, Estonia, one of Europe's smallest nations in terms of popularity, is selling like hot cake amongst the global entrepreneurs and investors. There are a variety of reasons for the same.
First is its strategic location, which allows business people to envelop entire Europe. Second, Estonia's capable digital infrastructure gives young entrepreneurs and old players of the market to set up/expand their company in Estonia without taking a flight to this European nation. Above, the government policies on ease of doing business have drawn substantial foreign investment in the recent past.
So, are you planning to start your business in Estonia? Before you jump the gun, today, we curated a quick list of the rookie mistakes people make when setting up their Estonian business. So, without wasting any time, let's get on with it:-
Failing to Understand The Difference Between You and Your Business
Even if you are setting up a one-person business, you must treat your company as a separate entity. This is a kind of blunder; generally, the entrepreneurs make their first venture. Your business is not you. Therefore, you are required to follow a strict guideline for managing your company's finances and not include it with your personal finance.
Moreover, on the legal aspect, you need to understand that your Estonian company will pay off the taxes as an entity. At the same time, you are responsible for making the tax return in your own country to avoid this confusion. If you are new to the business game, then you can always take the advice of a qualified consultant to plan out how to open a company in Estonia.
No Business Prospects
The biggest pitfall majority of entrepreneurs make for themselves is starting a company without good prospects. Yes, the process to set up your business in Estonia is super-easy, but a company is still a big commitment that calls for true dedication and efforts to survive & thrive in the market. Thus, you must take being a business owner seriously, not just trying out an entrepreneur idea.
If you've business ideas, then polish it till it becomes a good business prospect. Don't be in a hurry to open a company in Estonia, do research to know whether your business venture can work in Estonia. Further, you need to know, starting your company in Estonia, but not closing it as you require liquidator by your side to file your closing application.
Not Obtaining Licenses & Permits
There is a lot of freedom for investors and entrepreneurs to translate their business idea into reality here in Estonia. However, you still need to respect the local laws, including permits & licenses. For instance, if you want to launch a crypto trade portal, then legally file your application to run this type of business in Estonia.
Do you've something to add to this list, share with us in the comment section below!