In Germany, it reduces the overhead of owning a company dramatically (the overhead of a German GmbH is quite a bit more than just taxes, including mandatory registrations, etc.).
In Switzerland, it reduces necessary share capital from 25'000CHF to 2,500EUR (which can be deferred).
In the US, it probably doesn't make sense unless your situation is very special.
As a digital nomad, it gives you a clear business home while traveling the world (and running everything online is essential).
Estonian accounting and business management is all electronic, so you can essentially run your business 99% in Estonia, do yearly tax reports in your resident, all while reducing the day-to-day complexity of running your business significantly. (No more paper or faxing!)
For non-EU residents, an Estonian entity gives them a clear legal path to marketing and selling in the EU with proper VAT, etc. reporting.
Every one I know has had slightly different reasons while Estonia made sense for them. I'm also purposefully not addressing the intangibles of registering a business in a well-functioning, well-regulated, forward-looking jurisdiction, which is a large component for many of my friends. (We care about Estonia, like its ideals, and want to see it succeed on a global scale.)
Here's a few examples:
In Germany, it reduces the overhead of owning a company dramatically (the overhead of a German GmbH is quite a bit more than just taxes, including mandatory registrations, etc.).
In Switzerland, it reduces necessary share capital from 25'000CHF to 2,500EUR (which can be deferred).
In the US, it probably doesn't make sense unless your situation is very special.
As a digital nomad, it gives you a clear business home while traveling the world (and running everything online is essential).
Estonian accounting and business management is all electronic, so you can essentially run your business 99% in Estonia, do yearly tax reports in your resident, all while reducing the day-to-day complexity of running your business significantly. (No more paper or faxing!)
For non-EU residents, an Estonian entity gives them a clear legal path to marketing and selling in the EU with proper VAT, etc. reporting.
Every one I know has had slightly different reasons while Estonia made sense for them. I'm also purposefully not addressing the intangibles of registering a business in a well-functioning, well-regulated, forward-looking jurisdiction, which is a large component for many of my friends. (We care about Estonia, like its ideals, and want to see it succeed on a global scale.)