Estonia has got business regulation that makes it, overall, a very much business friendly environment, which is the main reason why it is a home for many successful companies who grew up to become important international market players, mostly in technology sector, including IT, and why it is also among the countries with the highest number of entrepreneurs per capita. Starting a business is easy and cheap and compliance with tax regulation is among the best in the world, due to simple procedures and high usage of electronic tax filing. Obtaining construction permits and getting electricity is quick, although the latter could be expensive. There are few administrative or licensing requirements in conducting a daily business, which helped bring corruption to a low level. State institutions
show a strong inclination to digital era tools, instead of the old fashioned paperwork – an innovative example of which is the electronic residency: basically, a foreign national entrepreneur residing abroad can easily register and run a company in Estonia, under its laws. Labour regulation is characterized by flexibility of the workplace, with little requirements and costs for redundancy workers, with short notice periods (one to three months), and with low severance pay (a monthly salary). Maximum working week is set at 5 days, with prolonged workweeks in case of workload increase, but with restrictions on the night work. Compulsory military service of 8 – 11 months is still present. The monthly minimum salary is approximately 40% of the average wage, which is at the higher end of its proposed level by the World Bank. It was increased approximately 10 percents as compared to the previous year.