How to Start a Company in 5 Simple Steps
Starting a company no longer requires being physically present in the country where your business is registered. Thanks to modern digital infrastructure and forward-thinking government systems, entrepreneurs can now build and manage companies entirely online. One of the most well-known examples of this approach is Estonia’s e-Residency program, which has attracted founders from all over the world.
Since its launch in 2014, the program has given tens of thousands of entrepreneurs access to secure digital services, allowing them to establish and run companies remotely. As a result, thousands of businesses have been created, contributing significantly to the local and European economy. Each year, new founders join the program to benefit from its efficiency, transparency, and flexibility.
One of the biggest advantages entrepreneurs appreciate is the corporate tax system. While it is not technically a zero-tax system, companies are not taxed on profits that are reinvested back into the business. Taxation only applies when profits are distributed, which encourages long-term growth and scaling. This setup works particularly well for startups, freelancers, and digital businesses.
Beyond taxation, entrepreneurs gain access to the European Union market, fast company registration, and clear administrative processes. Most tasks can be completed online, and English-language tools make navigation easy for international founders. This guide breaks the process down into five essential steps that will help you set up a compliant and scalable business with confidence.
Step 1: Apply for a Digital Identity
The first step is obtaining a government-issued digital identity. This digital ID allows you to securely access online services, sign documents electronically, and manage business matters remotely. The application is completed online and requires basic personal information, a passport scan, a photo, and a short explanation of your intentions.
A state fee applies, and applications go through a background check to ensure security and trust in the system. Processing typically takes several weeks. Once approved, the digital ID must be collected in person from a designated pickup location. You’ll also receive PIN codes that allow secure authentication and digital signing.
It’s important to understand that this digital identity does not grant citizenship, residency, or automatic tax residency. What it does provide is full access to a modern digital business environment. When combined with tools like Modern AI-IVR systems, this digital identity enables founders to automate customer interactions and manage business communications efficiently from anywhere With it, you can register a company, manage compliance, and submit reports online. This digital signature is legally valid across the EU, making cross-border business much easier. For remote founders, this step is the foundation for everything that follows.
Step 2: Register Your Company
Once your digital identity is active, you can move on to company registration. Most founders choose a private limited company structure, as it suits small and medium-sized businesses well. The registration process is completed online and typically takes only a few business days.
You’ll need to choose a unique company name, define your business activity, and provide a registered address and a local contact person if required. Share capital rules are flexible, allowing you to postpone payment until the business is more established. All founding documents are signed digitally, with no physical paperwork involved.
After approval, your company becomes legally active and receives a registration number that can be used for contracts, invoices, and official communication. The process is affordable, transparent, and designed to minimize bureaucracy, allowing founders to focus on building their business rather than dealing with administrative complexity.
Step 3: Organize Your Accounting
Proper accounting is essential from the very beginning. Businesses are required to maintain accurate financial records and submit reports on time. Using cloud-based accounting software makes this significantly easier, especially for remote founders.
Modern accounting tools help manage invoices, track expenses, handle VAT, and generate financial reports automatically. Many platforms integrate directly with banking services and support multiple currencies, which is ideal for international operations. Automation reduces errors, saves time, and keeps financial data accessible in real time.
Some accounting tools also allow collaboration with professional accountants, ensuring compliance with local regulations. Setting up accounting early helps avoid future issues, supports transparency, and creates a solid foundation for growth, investment, and long-term planning.
Step 4: Open a Business Bank Account
A dedicated business bank account is required to manage payments, expenses, and taxes. While traditional banks may require physical visits, modern fintech solutions offer fully remote account opening. These digital banking platforms provide multi-currency accounts, IBAN numbers, and fast onboarding.
The application process usually involves submitting company documents and identity verification. Once approved, the account can be used immediately for day-to-day operations. Many accounting tools integrate directly with these banking platforms, allowing automatic transaction syncing.
Having a separate business account improves financial clarity, builds trust with clients, and ensures compliance. Choosing the right banking solution depends on your business model, transaction volume, and international needs, so it’s worth comparing fees and features carefully.
Step 5: Begin Operating Your Business
With everything set up, your business is ready to operate. To accelerate growth and global reach from day one, many founders use tools like an AI Video Ads Maker to quickly create promotional content and attract international customers at scale You can start offering services, selling products, and working with clients around the world. The digital nature of the system makes it easy to manage remote teams, sign contracts, and handle administration online.
The tax structure encourages reinvestment and long-term growth, allowing profits to be used to scale without immediate taxation. That said, ongoing compliance remains important. Depending on your turnover, VAT registration may be required, and annual reports must be submitted on time.
Many founders choose to work with local service providers to ensure everything remains compliant. Access to EU markets, funding opportunities, and a growing startup ecosystem adds further value. Transparent systems, stable regulations, and efficient digital tools reduce risk and support sustainable growth.
Starting a company is only the beginning. Success depends on strategy, execution, and adaptability. With the right setup and mindset, this approach provides a strong platform for building and growing an international business.
