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Complete SaaS Company Setup Guide: Estonia to Stripe
Launch your SaaS company in the EU with Estonia e-Residency, Xolo Leap, Wise Business, and Stripe. Complete infrastructure setup in 4 weeks with full tax compliance and international payment processing.
What You'll Build
- Estonia E-Residency - €150 one-time digital identity for EU business
- Xolo Leap - From €59/month for company formation, accounting, and tax compliance
- Wise Business - Free multi-currency IBAN for international banking
- Stripe Payments - 1.5% + £0.20 per transaction for global payment processing
- VAT MOSS Compliance - Automatic EU VAT handling included
- 100% Remote Operation - Work from anywhere in the world
Step 1
Get Estonia E-Residency
Estonia's e-Residency is your digital identity that allows you to establish and run an EU company 100% online. It's not citizenship or residency - it's purely a digital business tool.
What You'll Do:
- Visit e-Residency.gov.ee and complete the online application form. You'll need to explain your business intentions (e.g., "I'm launching a SaaS product and want to establish an EU company").
- Upload required documents: passport copy, recent photo, and motivation letter. The motivation should be genuine - they approve most legitimate business applications.
- Pay the €150 state fee (includes e-Residency kit, card reader, and lifetime digital identity).
- Wait 3-4 weeks for approval. You'll receive an email when your kit is ready for pickup.
- Pick up your kit at any Estonian embassy or police station in Estonia. Book an appointment through the portal.
Pro Tips:
- • Use the waiting time to plan your SaaS product, pricing, and business model
- • Check embassy locations - some countries have multiple pickup points
- • The card reader works on Mac, Windows, and Linux - test it immediately after pickup
- • Your e-Residency digital identity is valid for 5 years, then renewable for €100
Step 2
Form Your Company with Xolo Leap
Xolo Leap is a complete solution for SaaS companies: company formation, accounting, tax compliance, and business banking all in one platform. It's specifically designed for digital businesses.
What You'll Do:
- Visit Xolo.io and choose Leap plan. Start with the basic plan (€59/month) - you can upgrade later as you scale.
- Complete the company formation wizard. You'll choose your company name, business activities (use code 62.01 for software), and shareholder structure.
- Sign documents with your e-Residency card. Use the card reader and PIN codes. Xolo handles all submissions to Estonian Business Registry.
- Pay company formation fee (€250-300 including state fees, included in first month's subscription).
- Receive your company registration in 1-2 business days. You'll get your company registry code and official documents.
What's Included in Xolo Leap:
- • Company formation and legal address in Estonia
- • Automatic bookkeeping (connects to Stripe, Wise, and other tools)
- • Quarterly VAT declarations (VAT MOSS for EU sales)
- • Annual tax returns and financial statements
- • Unlimited invoice generation
- • Dedicated accountant support
- • Built-in business banking option (or use Wise)
Pro Tips:
- • Choose a clear, simple company name - avoid special characters or overly long names
- • Share capital requirement is €2,500 but you can pay it gradually from revenue
- • Connect your Stripe and Wise accounts to Xolo for automatic transaction import
- • Set up regular monthly transfers to yourself (salary and/or dividends)
Step 3
Open Wise Business Account
Wise Business (formerly TransferWise) provides multi-currency business accounts with low-cost international transfers. Essential for receiving Stripe payouts and paying international contractors.
What You'll Do:
- Visit Wise.com/business and create a business account. Select "Estonia" as your company jurisdiction.
- Verify your company. Upload your company registry extract from the Estonian Business Register (you'll get this from Xolo).
- Verify yourself as director using your e-Residency card or passport. Video verification may be required.
- Add initial funds (minimum €20 recommended) to activate your account.
- Get your account details for EUR, GBP, USD (and 50+ currencies). Each currency gets its own local bank details.
Why Wise for SaaS Companies:
- • Hold and receive money in 50+ currencies with local bank details
- • Perfect for Stripe payouts (GBP, EUR, USD accounts available)
- • Ultra-low fees for international transfers (0.35-0.65% typically)
- • Business debit card for expenses (virtual and physical cards)
- • Batch payments for paying multiple contractors at once
- • API access for automated payments (advanced feature)
Pro Tips:
- • Get GBP and EUR accounts at minimum - these are essential for European business
- • Set up Stripe to pay out to your Wise GBP account for lowest fees
- • Use Wise's "Balance" feature to hold funds in multiple currencies and convert when rates are favorable
- • Connect Wise to Xolo Leap for automatic expense and income tracking
Step 4
Set Up Stripe for Payments
Stripe is the de facto payment processor for SaaS companies. It handles credit cards, subscription billing, invoicing, and has excellent developer tools for integration.
What You'll Do:
- Visit Stripe.com and create an account. Select "Estonia" as your business location.
- Activate your account. Provide company details, business description, and expected processing volume. Be honest and specific.
- Verify your company. Upload company registry documents and proof of business address (use documents from Xolo).
- Connect your Wise bank account for payouts. Use your Wise GBP or EUR IBAN details.
- Set up your first product or subscription in the Stripe Dashboard. Configure pricing, billing interval, and trial periods.
- Integrate Stripe into your SaaS using Stripe Checkout, Billing Portal, or custom integration via their API.
Stripe Features for SaaS:
- • Subscription billing with automatic recurring charges
- • Customer portal for self-service plan changes and cancellations
- • Usage-based billing for metered features
- • Automatic invoice generation and email delivery
- • Dunning management for failed payments
- • Tax calculation (Stripe Tax) for EU VAT compliance
- • Fraud detection and 3D Secure authentication
Pro Tips:
- • Enable Stripe Tax to automatically calculate and collect EU VAT (€10/month but saves huge accounting time)
- • Use Stripe Checkout for fastest setup - it's a hosted payment page that handles everything
- • Set up webhooks to sync payment events to your SaaS (essential for automated provisioning)
- • Configure email receipts and failed payment emails in Stripe Dashboard
- • Use test mode extensively before going live - Stripe provides test cards
Step 5
Configure Accounting and Tax
With your company, bank, and payment processor ready, it's time to configure accounting and tax compliance. Xolo Leap automates most of this, but you need to set it up correctly.
What You'll Do:
- Connect Stripe to Xolo Leap. Use Xolo's integrations panel to link your Stripe account. All transactions will import automatically.
- Connect Wise to Xolo Leap. Link your Wise account so bank transfers are automatically recorded.
- Register for VAT in Estonia (required if selling to EU consumers). Xolo handles the application - it takes 2-3 days.
- Enable VAT MOSS registration. This allows you to file one VAT return for all EU countries instead of registering in each country.
- Set up your personal compensation. Decide on salary vs dividends (ask your Xolo accountant for tax-optimized advice).
- Configure expense categories. Set up categories for common SaaS expenses: hosting, tools, subscriptions, contractors.
Understanding Estonian Company Tax:
- • 0% tax on retained earnings - profits left in the company are not taxed
- • 20% tax on distributed profits - only pay when taking dividends
- • VAT - 22% in Estonia, but you charge customer's country rate for EU B2C sales
- • Salary - 20% income tax + 33% social tax (paid by company)
- • Most founders optimize by taking small salary + larger dividends
Pro Tips:
- • For B2B sales to EU companies, use reverse charge (no VAT) - customer's VAT number required
- • Sales outside EU are typically VAT-exempt (0% rate) - great for US customers
- • Keep business expenses separate - use Wise card for all business purchases
- • Take time to understand the dividend vs salary tradeoff - it significantly impacts your take-home
- • VAT filing is quarterly - Xolo reminds you and prepares everything automatically
Step 6
Launch Your SaaS Product
With all infrastructure in place, you're ready to launch your SaaS and start accepting customers worldwide. Here's your final checklist before going live.
Pre-Launch Checklist:
Test payment flow end-to-end.Use Stripe test mode to verify signup, payment, and account provisioning work correctly.
Verify VAT is calculated correctly.Test with addresses from different EU countries to ensure proper VAT rates apply.
Set up legal pages (Terms, Privacy, Refund Policy).Required for GDPR compliance and payment processor terms. Use templates but customize for your SaaS.
Configure webhook handling.Ensure your SaaS responds correctly to Stripe events (payment success, failure, subscription canceled).
Add company details to your website.Include company name, registry number, address in your website footer (EU legal requirement).
Set up customer support email.Use your domain (@yourcompany.com) for professional communication.
Test the cancellation flow.Verify customers can cancel subscriptions easily (legally required and reduces chargebacks).
Enable monitoring and alerts.Set up Stripe alerts for failed payments and unusual activity.
Your SaaS Infrastructure Is Complete!
You now have a complete, professional SaaS business infrastructure:
- Legal entity: Estonian company with EU market access
- Payment processing: Stripe accepting cards worldwide
- Banking: Multi-currency accounts via Wise
- Accounting: Automated bookkeeping through Xolo Leap
- Tax compliance: VAT MOSS, quarterly filings, annual returns
- Scalability: Infrastructure grows with your revenue
Frequently Asked Questions
All information verified as of October 2025. Prices and features subject to change. Always verify current pricing with providers.
