I’ve written previously about the impressive way that Estonia have integrated digital technologies and processes into their governance. The flagship policy is their e-Residency scheme, which allows businesses from around the world to register easily in the country, and thus gain access to the EU single market.
The success of the program was underlined with recent statistics revealing that the number of e-Residency applications has now exceeded the number of births each year in the country. The 11,096 applications in 2017 to date brings the total to over 27,000.
“With over 27,000 e-Residency applications to date, we’ve seen the initiative’s popularity grow steadily since launch.” said Kaspar Korjus, Programme Lead, e-Residency. “e-Residency offers the freedom for every world citizen to easily start and run a global EU company from anywhere in the world, and as of October 2017, our e-Residents own over 4,000 enterprises.”
e-Residency provides applicants with a state-approved digital identity and access to the e-Residency platform. This allows users to access a range of Estonian public services as well as some provided by international service providers. For instance, e-Residents can easily run their business inside the EU from anywhere in the world via the digital platform, which allows them to create bank accounts and conduct online financial transactions to support their company.
Global reach
The 27,000 applicants have come from over 150 different countries, with Finland coming out on top. Perhaps unsurprisingly given the vote to leave the EU, the UK also scores highly, coming in 5th place.
The companies applying for the scheme have a range of motives, but the desire to trade globally is evident. For instance, 41% reveal that they wish to start an international business in the country, with just 27% hoping to bring their business to the local Estonian market.
The success is vindication of the unique approach taken by the country that has placed digital technology at the heart of what its government is trying to do.
“Estonia is the first country creating a borderless digital society for global citizens by offering e-Residency. Anyone, regardless of nationality or location, can apply for the transnational, government-issued digital identity and benefit from a platform built on inclusion, legitimacy, and transparency.” Companies founded by e-Residents work in a range of industries. Of these sectors, business and management consultancy, computer programming, non-specialised trade, tech consultancy and business support services proved to be the most popular,” Korius says.
The overall aim of the program is to allow Estonia to punch above its weight internationally, growing its digital economy and encouraging innovation. The project is nearly three years old, and still therefore in an early stage of its development, but the team are excited about the progress it has made to date and about the potential it offers in the future.
