Global E-Residency Glossary

A set of laws, regulations, and procedures intended to prevent criminals from disguising illegally obtained funds as legitimate income.

A form of authentication issued to documents for use in countries that have joined the Hague Apostille Convention, simplifying the process of document legalization.

A formal document that records decisions made by a company's board of directors, often required for significant business transactions and changes.

The natural person who ultimately owns or controls a legal entity or arrangement, or the natural person on whose behalf a transaction is being conducted.

A tax imposed on the profits of corporations. In Estonia, this tax is only applied when profits are distributed, making it attractive for reinvestment.

The act of conforming to or meeting rules, regulations, standards, and laws that apply to a business or individual in their jurisdiction.

An individual who works remotely while traveling and living in different locations, often leveraging digital technologies to perform their job duties regardless of their physical location.

An agreement between two countries to avoid taxing the same income twice, providing relief for individuals and businesses operating internationally.

A business entity established within the European Union, providing access to the single market and various business advantages including simplified cross-border operations.

A United States federal law requiring US citizens and residents to report their foreign financial accounts and offshore assets to the IRS.

A digital identity issued by a government that allows non-residents to access services such as company formation, banking, payment processing, and taxation. It does not confer citizenship or physical residency rights.

The legal process used to form a corporate entity or company, creating a separate legal entity distinct from its owners.

The official power to make legal decisions and judgments, or the territory within which this power can be exercised.

A process used by businesses to verify the identity of their clients and assess potential risks of illegal intentions for the business relationship.

A business structure that combines the pass-through taxation of a partnership or sole proprietorship with the limited liability of a corporation.

A legal document that establishes a company and defines its relationship with shareholders, including the company's objectives and powers.

A person who acts as a director of a company on behalf of another person or entity, often used for privacy or compliance purposes.

The Estonian equivalent of a private limited company, the most common business structure for e-residents establishing companies in Estonia.

A legal document that gives one person the authority to act for another person in specified or all legal or financial matters.

The official address of a company as registered with the relevant authorities, where official correspondence and legal documents are sent.

A payment integration initiative that makes bank transfers throughout the eurozone as easy as domestic payments, facilitating business operations across EU countries.

The money invested in a company by its shareholders in exchange for shares of ownership, representing the company's equity funding.

A legal document defined by law that allows a person to declare something to be true in the presence of an authorized witness.

The country where an individual or business is considered a resident for tax purposes, determining which tax laws and rates apply to their income and assets.

The pricing of transactions between related entities within a multinational enterprise, subject to specific regulations to prevent tax avoidance.

A consumption tax placed on products and services at each stage of the supply chain where value is added, from initial production to the point of sale.

A tax deducted at source from payments such as dividends, interest, or royalties, often applied to cross-border transactions.