Do You Need a Company?
First, the honest question
Company Makes Sense If:
- ✓ Earning €30,000+/year from freelancing
- ✓ Want to reinvest profits tax-free
- ✓ Clients prefer paying companies
- ✓ Planning to scale or hire
- ✓ Need limited liability protection
Maybe Start with Xolo Go:
- ✓ Under €30,000/year revenue
- ✓ Just testing freelancing
- ✓ Need to invoice quickly now
- ✓ Don't want company overhead
- ✓ Can migrate to company later
Not sure? Compare Xolo Go vs Leap
Timeline Overview
Step-by-Step Guide
Apply for E-Residency
E-residency is your digital identity for managing the company remotely. Start this first — it takes the longest.
Application process:
- Apply at e-resident.gov.ee (~15 minutes)
- Pay €100-120 government fee
- Wait 1-3 months for approval and card production
- Pick up at Estonian embassy or pickup point
While waiting: Line up clients, prepare contracts, set up your online presence.
Choose Your Company Name
Pick a name for your Estonian OÜ. You can use your own name or a business name.
Name tips:
- Must end in "OÜ" (private limited company)
- Can't be identical to existing Estonian companies
- "[YourName] Consulting OÜ" is common for freelancers
- Check availability at ariregister.rik.ee
Form Company with Xolo Leap
Once you have e-residency, Xolo handles everything — registration, legal address, accounting setup.
What's included:
- Company registration with Business Registry
- Legal address in Tallinn
- Articles of association
- Ongoing accounting and tax filing
- Dashboard for invoicing and expenses
Cost: €399 setup + €79/month. Share capital optional (€0.01 minimum, €2,500 recommended).
Open Business Bank Account
Your company needs a bank account. Fintech options are fastest and best for freelancers.
Recommended:
Tip: Wise EUR account is what most clients expect. Add USD if you have American clients.
Start Invoicing Clients
You're ready to invoice. Xolo provides an invoicing tool, or use your own and upload.
Invoice requirements:
- Your company name, address, registration number
- Client details and VAT number (if B2B EU)
- Description of services, amount, currency
- Bank account details for payment
- Invoice number (sequential)
VAT: B2B to EU = reverse charge (0% VAT). B2B to non-EU = no VAT. Register for VAT if needed.
Pay Yourself
Once money is in your company, you have two options to get it personally.
Options:
Strategy: Keep money in company (0% tax) until you need it personally. Then decide salary vs dividends.
Monthly Workflow
Running your Estonian company takes about 30-60 minutes per month:
- 1.Send invoices — through Xolo or upload your own
- 2.Upload expenses — receipts for business costs (software, travel, etc.)
- 3.Categorize transactions — Xolo matches bank transactions to invoices
- 4.Review monthly report — Xolo sends summary, you approve
Xolo handles: VAT returns, annual report, tax declarations. You just provide the data.
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.
