Not Legal Advice
This guide provides general information only and is not legal advice. Company formation requirements and regulations vary by country and change over time. Consult a qualified legal professional before making business decisions. Information current as of January 2025.
Before You Start
What You'll Need
Documents
- • Valid passport
- • Proof of address (utility bill, bank statement)
- • Passport-style photo
- • Brief business description
Timeline Expectation
- • E-Residency: 2-4 weeks
- • Company setup: 1-2 days
- • Banking: 1-2 weeks
- • Stripe: 1-3 days
Total realistic timeline: 4-6 weeks from application to accepting payments. Plan accordingly for your launch.
The 10 Steps
Apply for E-Residency
Go to e-resident.gov.ee and complete the online application. Pay the €100-120 government fee. Choose your pickup location (Estonian embassy or service point nearest to you).
Timeline: Application takes 30 minutes. Approval in 2-3 weeks. Card delivery to pickup point in 1-2 additional weeks.
Pick Up Your E-Residency Card
Visit the pickup location with your passport. You'll receive your e-Residency card and card reader. Activate your digital ID.
Pro tip: Install the ID software before pickup. Test your card works before leaving the pickup point.
Sign Up with Xolo Leap
Create your Xolo account. They'll guide you through company formation, prepare the documents, and handle registration with the Business Registry.
Timeline: Company registered in 1-2 business days. You'll get your company registration number immediately after signing.
Open Business Banking
Open a Wise Business or Revolut Business account for your Estonian company. You'll need your company registration number and personal verification.
Timeline: Wise typically 3-5 business days. Revolut similar. Get EUR account first, add USD/GBP as needed.
Apply for Stripe
Create a Stripe account for your Estonian company. Select Estonia as your country. Provide company details and connect your Wise/Revolut EUR account for payouts.
Timeline: Most approvals in 1-3 business days. Have your company registration extract ready if requested.
Configure Stripe Tax (Optional but Recommended)
Enable Stripe Tax to automatically calculate and collect VAT for EU customers. Set your tax settings based on your product type (SaaS = digital services).
Why: Stripe Tax handles VAT calculation automatically. You still need to file returns, but collection is handled.
Set Up Your Billing
Integrate Stripe Billing for subscriptions. Create your pricing plans. Set up checkout pages or integrate with your app.
Tools: Stripe Checkout, Stripe Billing Portal, or integrate with your stack (Next.js, Rails, etc.)
Launch & Get Your First Customer
Go live! Your infrastructure is ready. Accept your first payment. Stripe processes, funds settle to your Wise account.
Celebration moment: First payment received. Your EU SaaS company is officially in business.
Monthly: Upload Statements to Xolo
Each month, export your bank statements and upload to Xolo. Their team matches transactions, handles bookkeeping, and keeps you compliant.
Time investment: ~20-30 minutes per month. Upload statements, answer any questions from Xolo team.
Scale: VAT Registration When Needed
Once you exceed €10k in EU B2C sales, register for OSS (One-Stop-Shop) to handle EU VAT in one place. Xolo helps with registration and quarterly filings.
Threshold: €10,000 total EU B2C sales. B2B sales with VAT numbers don't count toward this threshold.
Common Mistakes to Avoid
Don't Do This
- ✗Wait until launch day to start the process
- ✗Forget to pick up your e-Residency card
- ✗Mix personal and business accounts
- ✗Ignore VAT until you get in trouble
Do This Instead
- ✓Start e-Residency application 6 weeks before launch
- ✓Schedule pickup as soon as card is ready
- ✓Keep all business transactions in business account
- ✓Set up Stripe Tax from day one
Frequently Asked Questions
Everything you need to know before getting started
All information verified as of December 2025. Prices and features subject to change. Always verify current pricing with providers.
