Estonian e-residency lets you create an Estonian company.

It’s useful to some people to be able to create a company not tied to a particular location. For example, UK citizens generally can’t operate a UK company if they are not resident in the UK.

So, if you’re a digital nomad type, you’re scratching around to find a jurisdiction where you can run your company and moving around.

There are a few options. But Estonia is in the EU, the tax situation seems reasonable and they are positively welcoming. So, this is one problem that was solved.

I guess they could have just made it easier to start companies, without the e-residency. But being tied into the same ID system seems to make managing the company easier.