Establishment and internationalization through the Internet is a contemporary way for companies to enter foreign markets. There is not much scientific research done in the field of Internet and its effect on Internet based companies explaining their internationalization purpose via the Internet.

The purpose of this dissertation was to understand why a company chooses to use the Internet in its establishment and internationalization. The research questions are studied in relation to the internationalization of an Internet based company. We studied four different internationalization theories to see if they could explain the company’s internationalization through the Internet.

The conclusion of the conducted research is that a number of aspects are relevant in relation to the company’s choice of establishment and internationalization with the use of the Internet. A simplified model was created to illustrate the features.