- September 11, 2017
- Posted by: admin
- Categories: Altcoins, Initial Coin Offerings, Other Altcoins
China is a huge market for cryptocurrencies.
As China has banned ICOs, it means there are a lot of blockchain entrepreneurs in China that are looking for alternatives. They need a solution for Initial Coin Offerings (ICOs).
Estonia as an Alternative for ICOs?
We at Cryptoincome.me find that Estonia could be an interesting option for both — blockchain entrepreneurs and investors. It’s a small country between Russia and Finland, with only 1,3m inhabitants.
Why we think Estonia could be an interesting option for Chinese blockchain entrepreneurs?
Because Estonia is known as a digital nation. It’s a forward thinking country, one that has also talked about issuing its own coin — Estocoin. This might never happen, but there aren’t many countries that are at least thinking in this direction. Estonia has the highest number of startups per capita. Skype was developed there as well.
Estonia has an e-residency program which is available for everyone. You can apply for Estonian e-residency no matter where you live (almost). It takes about 30 days to receive your e-residency card. The application process is a simple one (we share a link below).
Easy Access to Entrepreneurs
Once you have the e-residency card, you can establish Estonian company online. You can also manage and sign administrative papers online (like changing the board members, signing annual reports etc).
Company registration takes literally 30 minutes. It’s not a bureaucratic process. Additionally, no share capital has to be paid to start a company.
This is especially attractive for Chinese entrepreneurs who are interested in doing ICOs. Why not do them using an Estonian company?
Country also has a favorable tax system (company income tax is 0%, if you do not take the profit out of the company). NB! I’m not a tax advisor, so please consult your tax advisor regarding possible tax implications you may have.
All governmental institutions run online programs. Voting is done online. To be honest, the whole Baltic and Scandinavian area is leaning towards technological advancements.
Possible Hurdle in Opening a Bank Account?
The only possible problem at the moment is opening a bank account. You have to visit the country. Lately, Estonia has passed the legislation that banks may use video identification during the onboarding process, but currently no banks are doing it for non-residents. If that changes, then it will be even more convinient to operate an Estonian company.
Then again — as a blockchain company, maybe you only need a wallet?
Cryptoincome.me has reached out to Comistar as a possible partner for Chinese (or for any other country) blockchain entrepreneurs.
Comistar offers different support services for foreign entrepreneurs in Estonia, including tax advisory and accounting.
Comistar Estonian office has provided a step by step instruction for entrepreneurs who want to register their Estonian companies online. Just check their website for more info.