Here’s why an e-resident can have their digital ID card certificates closed

Estonia is proud to open its digital doors to e-residents around the world, but those doors can also be closed when necessary.

The Estonian Police and Border Guard Board has closed the digital ID certificates on a small number of e-Residency cards belonging to people who established companies in Estonia, but failed to demonstrate compliance with Estonia’s business rules.

This means they are no longer able to use their digital ID cards and no longer have access to Estonia’s e-services. Any unfinished business they have in Estonia must be completed without the use of their digital ID card.

Estonia has an open and transparent online environment where companies can be managed entirely online from anywhere, but those benefits also come with responsibilities — regardless of whether you are a citizen, resident or e-resident.

There have been more than 40,000 applications for e-Residency since the programme was launched more than three years ago and these e-residents have subsequently established approximately 5,000 companies. As those companies mature, ongoing checks between the Estonian Police and Border Guard Board and the Estonian Tax and Customs Board are part of a range of measures that are necessary to protect the integrity of Estonia’s business environment for the overwhelming majority of e-residents, as well as citizens and residents, who follow correct procedures and fulfil their obligations. As another example, I also wrote earlier this year about why Estonia has zero tolerance towards the practise of appointing ‘nominee’ directors or shareholders, which is incompatible with the transparency required to operate in our business environment.

It’s important to emphasise though that e-residents who make mistakes or are unsure of their obligations will always receive the support and guidance that they need to operate correctly in Estonia’s business environment. E-residents can email nonresident@emta.ee for advice relating to taxation or e-resident@gov.ee for general advice about e-Residency. Companies are contacted by email whenever there is an issue that needs rectifying, but we always strongly recommend that e-residents focus on growing their own business by choosing an accountant who is already familiar with Estonian rules.

E-residents are already required to appoint a local contact person at their company address in Estonia, which can both be obtained in addition to accounting from an e-Residency business services provider.

Estonia’s digital doors are open to friends of our digital nation around the world, including legitimate entrepreneurs who would like to establish, manage and grow a company within our supportive online business environment. In order to continue offering those opportunities, Estonia’s digital doors must also be closed to people who could cause harm to our digital nation or fail to meet their responsibilities while operating here.