Starting a Cryptocurrency Company in Estonia and obtaining the necessary licenses
Estonia is an excellent country to start a cryptocurrency company in for a few reasons:
No corporate income tax on reinvested profits
No VAT on cryptocurrency trades
You can easily remotely manage an Estonian Company
Suitable for running an ICO
Optimized tax environment
Which types of Cryptocurrency Company can You have?
For either of these types of Company You need an operating license from the FIU (Estonian Financial Intelligence Unit). Your Company can only offer one of these services or also both types of services but that means that You also need both licenses. Unfortunately, there is not a joint license for both of these services and You will need to apply for them seperately and You will be issued two different licenses.
A Cryptocurrency Company in Estonia is defined as a financial institution, but with no special reporting requirements to Estonian tax authorities. Accounting and reporting is the same as for a regular Estonian Company. Please bear in mind that the FIU can always make inquiries about Your Company’s activities. You can find some of their advisory guidelines on their website here.