IN THE same week the UK government triggers Article 50 to exit the EU, UK company Red Robot Media (RRM) formally applied for registration of a new Estonian sister company.
The new Estonian company will allow RRM to retain a presence in the EU after Brexit. For EU clients, the move will also guard against Brexit uncertainty and give the company more flexibility post-Brexit.
RRM’s director Claire Broadley is a member of the Estonian e-residency programme. The programme allows individuals from anywhere in the world to set up an Estonian company and maintain close links with the EU after Brexit. There are currently approximately 1,000 UK citizens registered as Estonian e-residents.
Claire’s new company, Red Robot OU, will operate out of Tallinn, Estonia and will accept payments in euro from June, direct to its Estonian bank account, which will help it to protect against any further devaluation of the pound.
UK Estonian e-residents are creating companies to guard against Brexit uncertainty and ensure they can access valuable benefits of EU membership. Companies set up in Estonia will be able to access all of the benefits of the Digital Single Market, a program which the UK intends to exit over the course of the next two years.
For micro businesses like RRM, Brexit presents challenges in terms of costs and legal compliance. In particular, it is difficult for a very small business to attract significant EU business in an unclear post-Brexit environment. The Estonian e-residency program allows micro businesses to put contingency plans in place.