What You're Building
Agency structure with Estonian company
An Estonian OÜ gives your agency EU legitimacy while keeping operations flexible. Here's what the structure looks like:
Timeline Overview
Step-by-Step Guide
Apply for E-Residency
As agency founder, you need e-residency to manage the company. If you have co-founders, each needs their own e-residency to be board members.
Process:
- Apply at e-resident.gov.ee (€100-120 fee)
- Wait 1-3 months for processing
- Pick up card at Estonian embassy
Tip: All founders should apply simultaneously to avoid delays.
Form Your Agency OÜ
Choose a company name that reflects your agency brand. Xolo handles registration.
Considerations for agencies:
- Name should work internationally (clients will see it on contracts)
- Consider adding €2,500 share capital for credibility with larger clients
- Multiple founders? Define share split in founding documents
- VAT registration recommended for B2B agency work
Cost: €399 setup + €79/month (scales with Teams usage)
Set Up Banking
Agencies need multi-currency capabilities for global clients and contractors.
Recommended setup:
Tip: Set up both — redundancy matters when client payments are time-sensitive.
Set Up Xolo Teams
This is the agency game-changer. Onboard and pay contractors globally with compliance handled.
What Xolo Teams provides:
- Contractor onboarding with ID verification
- Contract templates (NDA, service agreement)
- Payment in 50+ currencies
- One consolidated invoice for your accounting
- Tax compliance documentation
Cost: Per-contractor fee. Scales with your team size.
Create Client Contract Templates
Professional contracts protect you and impress clients. Set these up before first client.
Contract types to prepare:
- Master Service Agreement (MSA): Umbrella terms for ongoing relationships
- Statement of Work (SOW): Per-project scope, deliverables, pricing
- Retainer Agreement: Monthly ongoing services
- NDA: For sensitive client information
Tip: Have a lawyer review your templates. Worth the investment for peace of mind.
Invoicing Workflow
Establish a consistent invoicing process from day one.
Agency invoicing best practices:
- Invoice immediately upon milestone completion or month-end for retainers
- Include project/retainer reference number for client's records
- For EU B2B: Include client VAT number, use reverse charge
- Set clear payment terms (Net 30 standard, Net 15 for smaller clients)
- Automate reminders for overdue invoices
Scaling Your Agency
The Estonian structure supports growth without bureaucratic overhead.
1-5 Contractors
Xolo Leap + Teams. You handle project management, Xolo handles admin.
5-20 Contractors
Add project management tools. Consider dedicated operations person.
20+ Contractors
Full operations team. May consider local entities in key markets.
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.
