The fintech sector in Estonia is a highly innovative and user-friendly one. Service providers in this industry cover banking, fund management, treasury and shared services, as well as insurance and e-government. The market players adopt new technologies constantly and improve the user friendliness of the industry for clients from all over the world. In this article, our Estonian company formation consultants cover a few key aspects related to opening a fintech company in Estonia.
Fintech services offered in Estonia
Here are a few major fintech services our company formation advisors in Estonia strongly believe are worth covering in order to begin a successful fintech business in Estonia:
• E-commerce: you could open an Estonian company which offers patented payment tools to e-commerce businesses. This type of business allows online retailers to immediately provide monthly installment plans at checkout, on the client’s current credit cards;
• Loans: this type of fintech company makes finance more accessible. For example, you could offer better rates for student loans, as well as simpler procedures and better services across the board. In just a few minutes, the clients could calculate a loan rate on the business website;
• Investment: you could provide an investment platform which offers clients the ability to trade like professional brokers by copying strategies from the real successful ones. When investing money, it can get confusing because of all the stocks and charts, so by sharing investment strategies on a social community, other people could gain the ability to do the same, or analogous investment decisions.
Things to consider when starting a fintech company in Estonia
To register a fintech company in Estonia, it is necessary to choose a business name and to verify its availability fist. Afterwards, the company should be registered with the Commercial Register. Then, it should be registered as a VAT payer and, finally, it should register its employees with the employee registry.
Before starting a fintech company in Estonia, our company registration agents in Estonia recommend you to consider the following aspects:
• The local regulations: the financial services can be a difficult sector to enter because of the regulations imposed by the local authorities. The legislation related to this industry has been put in place to protect the financial systems from abuse. Moreover, the compliances which are requested for financial institutions usually require hiring accountants and lawyers;
• The major competitors: the major players in the sector are the banks, which hold assets. Many of them have the ability to either partner up with fintech businesses or to buy them out;
• Client trustworthiness: security has become the most important point of all tech companies at the present.
Some investors may also be interested in starting a cryptocurrency business. In this case, our agents can help you apply for the Estonia crypto license. The cryptocurrency exchange is the most common business that requires a crypto license in Estonia. This kind of enterprise must apply for an exchange license from the National Bank as it is regarded as a trading platform. In addition to this permit, companies must also respect particular requirements. Our local consultants are at your service should you decide on this type of activity.
If you would like to know more about the fintech sector in Estonia, or if you want to open an Estonian company, we invite you to get in touch with our friendly staff.