Starting a consulting company can be a lucrative and flexible business opportunity. If you’re thinking about setting up your consulting firm, here’s a simplified guide to get you started, with a focus on why Estonia might be the perfect location for your business.
Why Choose Estonia?
Estonia offers unique benefits for entrepreneurs. Here are some key numbers:
- 116,300+: Total number of e-residents of Estonia
- 31,800+: Number of Estonian companies established by e-residents
- 873: New e-residency applications in July 2024
Estonia’s e-Residency program allows you to start and manage a business online, making it an attractive option for consultants.
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Success of Eesti Consulting
Pawel Krok from Eesti Consulting launched his company in 2018 to provide services to non-residents. His success illustratesPawel Krok, a board member at Eesti Consulting, has extensive experience in launching consulting companies across EU countries. He specialises in providing services for digital nomads and non-residents. Pawel has recently contributed to the World Bank’s Business Ready 2024 Project, demonstrating our commitment to global efforts for a sustainable private sector and fighting poverty. how effective the e-Residency program can be for setting up and running a consulting business from anywhere in the world.
By choosing Estonia, you can take advantage of its business-friendly environment and digital infrastructure to grow your consulting company efficiently.
Tax Incentives of Business in Estonia
Estonia offers a unique environment for entrepreneurs and consultants. As a digital-forward nation, Estonia provides several advantages for running a consulting business:
0% Corporate Tax on Reinvested Profits: One of the standout features of operating in Estonia is the 0% corporate tax on reinvested profits. This means if you reinvest your profits back into the business, you won’t incur corporate tax, allowing your business to grow faster. This policy encourages companies to reinvest in their growth and development rather than paying taxes on profits.
Startup-Friendly Environment: Tallinn, the capital of Estonia, is known for its vibrant startup community, making it an excellent location for new ventures. The city is a hub for innovation and entrepreneurship, providing a supportive ecosystem for startups.
Simplified Tax Administration: Estonia offers a straightforward and efficient tax administration system. Business owners can handle their tax affairs online through the e-Tax Board, making tax compliance easier and more transparent.
Flat Corporate Tax Rate on Distributed Profits: While profits reinvested in the business are tax-free, distributed profits are taxed at a flat rate of 20%. This flat rate simplifies tax planning and ensures predictability in tax liabilities when profits are distributed.
No Withholding Taxes on Dividends: Estonia does not impose withholding taxes on dividends paid to non-resident shareholders, making it an attractive option for international investors.
Attractive R&D Tax Incentives: Estonia supports innovation through various tax incentives for research and development activities. Companies engaged in R&D can benefit from a favourable tax environment that supports innovation and technological advancement.
Transparent Business Environment: Estonia is known for its low levels of corruption and high levels of transparency. This creates a reliable and predictable business environment, which is crucial for long-term business planning and operations.
What is e-Residency Initiative?
Estonia’s e-Residency program is a revolutionary tool for digital entrepreneurs, making it easier than ever to start and manage a business from anywhere in the world. Here’s how it works:
What is e-Residency?
E-Residency allows you to start and manage an Estonian company online, regardless of your physical location. The program provides access to Estonia’s robust digital infrastructure, including online banking and a range of business services.
How to Apply?
Applying for e-Residency is a simple process. You can submit your application online, and once approved, you will receive your e-Residency card at a local embassy. This card enables you to set up and manage your business remotely, without the need to visit Estonia.
Managing Your Business
With your e-Residency, you can utilise Estonian digital services to handle various business tasks such as filing taxes, managing financial accounts, and more, all from the comfort of your home.
No Need to Visit Tallinn
You don’t need to visit Tallinn to get your e-Residency. You can collect your e-Residency card from an Estonian embassy or consulate in your home country. Here are a few examples of countries where you can pick up your e-Residency card:
- 🇺🇸 United States
- 🇬🇧 United Kingdom
- 🇦🇺 Australia
- 🇨🇦 Canada
- 🇩🇪 Germany
- 🇫🇷 France
- and other countries around the world
This means you can start and manage your Estonian company without ever needing to travel to Estonia, making it incredibly convenient for international entrepreneurs.
Launch Accounting Services
To operate as a consultant company in Estonia , you need also launch accounting software to deal with invoices – sales and purchases. It’s very important to do it properly and monitor exceeding VAT thresholds. If you have a lot of employees – you need to start thinking about payroll software.
How to Win Clients for Consulting
Effective promotion is key to attracting clients and growing your consulting business:
- Build a Professional Website or Ecommerce: Your website should reflect your expertise and services. Ensure it’s user-friendly and showcases your skills and experience. A lot of consulting companies launch Ecommerce instead of websites to experiment with programmatic ecommerce content.
- Optimize for SEO: Implement basic SEO strategies to improve your website’s visibility in search engines. Focus on keywords relevant to your consulting services and use meta tags effectively.
- Acquire Backlinks: Backlinks from reputable sites can boost your website’s authority and search ranking. Develop relationships with industry influencers and contribute guest posts to relevant blogs.
TIPS for New Companies
As you set up your consulting company, keep these additional factors in mind:
If you’ve recently registered your company in Estonia, here are some practical tips to help you integrate into the local business community and maximise the benefits of your e-Residency:
1. Join the Commercial Association KODA.ee
- Why? KODA (Commercial Association of Estonian Entrepreneurs) is a valuable resource for networking, gaining business insights, and accessing local business support.
- How? Visit the KODA.ee website to learn more about membership benefits and how to join.
2. Join the Facebook Group for e-Residents
- Why? Joining Facebook groups dedicated to e-Residents provides a platform to connect with other entrepreneurs, share experiences, and seek advice from those who have already navigated the e-Residency landscape.
- How? Search for e-Residency-related groups on Facebook, such as “e-Residency Community” or similar groups, and request to join.
3. Register with the Estonian e-Residency Marketplace
- Why? The Estonian e-Residency Marketplace is a hub for e-Residents to showcase their companies, find service providers, and connect with potential clients.
- How? Visit the Estonian e-Residency Marketplace website to add your company and explore various business services available to e-Residents.
4. Connect with Top IT Companies
- Why? Partnering with top IT companies can help you scale your business faster by leveraging advanced technology solutions and services.
- How? Explore this list of Top IT Companies to find potential partners for collaboration.
5. Enroll in a Digital Marketing Course
- Why? Digital marketing is crucial for any business. Gaining knowledge in this area can help you attract more clients and grow your online presence.
- How? Consider enrolling in a Digital Marketing Course to develop the skills needed for successful online campaigns.
6. Optimise Your Website with SEO
- Why? Getting SEO done for your website is essential for improving online visibility, driving organic traffic, and achieving higher search engine rankings—key factors in boosting your business growth.
- How? Partner with a professional SEO agency like TDF to analyse your website, optimise content, and implement effective SEO strategies. For link building, dedicate time to the process or hire a specialized agency like Glormy to accelerate results. If your budget is higher, you can consider engaging a larger, results-driven international search engine marketing agency like non.agency, which is especially recommended for fintech companies. Raf Chomsky from non.agency says: ‘We achieved 689,135 more visitors for a FinTech SaaS website, with a 124.45% increase in visitors YoY (from 553,759 to 1,242,849), working with this website over two years, during which the campaign was active for six months each year.
7. Try Cold Emailing to Reach More Clients with Ease
Cold emailing is a great way to reach more clients without hiring more people, and using tools like SalesForge.ai makes it even easier. You can connect all your email accounts—like Gmail or Outlook—in one place, so you manage everything from one tab. To avoid your emails landing in spam, SalesForge.ai helps warm up your mailboxes and checks email addresses to reduce bounce rates, ensuring more people open your emails.
SalesForge.ai also helps you personalize emails quickly without spending too much time. Its AI tools let you create custom emails for each client in seconds, allowing you to reach more people while still keeping your messages personal. It’s a simple way to scale your outreach without adding more work.
By following these tips, you’ll be better positioned to leverage the benefits of operating in Estonia and build a successful business with the support of the local and global e-Residency community.
Conclusion
Running a consulting company can be a rewarding venture, especially when leveraging Estonia’s business-friendly environment and e-Residency program. By focusing on strong branding, effective promotion, and understanding the local business landscape, you can position your consulting firm for success.
With these steps, you’re well on your way to launching a thriving consulting business.
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Pawel Krok
Pawel Krok, a board member at Eesti Consulting, has extensive experience in launching consulting companies across EU countries. He specializes in providing services for digital nomads and non-residents. Pawel has recently contributed to the World Bank’s Business Ready 2024 Project, demonstrating our commitment to global efforts for a sustainable private sector and fighting poverty.
