How to Start an Estonian Company with e-Residency (Video Guide)

Starting a company in another country used to require local paperwork, legal visits, and complex bureaucracy. Estonia changed that.

Through its e-Residency program, entrepreneurs anywhere in the world can launch and run an EU company entirely online. It’s one of the most advanced digital business ecosystems and is widely used by freelancers, consultants, SaaS founders, and remote entrepreneurs.

In the video below, Hessel walks through the full process - from choosing a service provider to registering an Estonian company and running it remotely.

Watch the Full Guide

How to Start an Estonian Company

Starting an Estonian company through e-Residency follows a clear sequence of steps. At a high level, the process looks like this:

1. Choose a service provider to help manage registration and compliance
2. Apply for Estonian e-Residency
3. Receive your e-Residency card and set up DigiDoc
4. Register your company online
5. Set up accounting, banking, and compliance systems
6. Begin invoicing and operating your business

For a detailed walkthrough of each step, read 👉 A Step-by-Step Guide to Applying for e-Residency

Why You Need a Service Provider

Although Estonia allows businesses to be run digitally, entrepreneurs operating from abroad still need certain local requirements in place. These include a registered business address in Estonia, compliant accounting and reporting.

This is why most founders choose to work with a service provider.

At Xolo, we simplify the entire process by handling company formation, bookkeeping, and ongoing compliance from one platform. Instead of navigating multiple government systems or managing accounting independently, entrepreneurs can rely on a service that keeps everything organized and compliant. In fact, Xolo was recently recognized as Estonia’s #1 accounting company, highlighting its leadership in supporting digital entrepreneurs and e-Residency businesses.

With Xolo you’ll also get help managing tax reporting, bookkeeping, and annual filings, ensuring that your Estonian company meets all regulatory requirements while you focus on running your business.

For many founders, this removes one of the biggest barriers to operating a company internationally.

Banking and Payments

Once your company is registered, the next step is setting up business banking so you can invoice clients and receive payments.

Many e-Residents connect their Estonian company with international fintech banking solutions that support global transactions and multi-currency accounts. These tools make it possible to receive payments from clients worldwide and manage finances remotely.

If you want a deeper look at how banking works for e-Residency companies - including which options entrepreneurs commonly use - read our 👉 Ultimate Guide to e-Residency and Borderless Business Banking

Cost Overview

Starting and running an Estonian company involves several typical costs.

These may include:

• The e-Residency application fee
• Company formation costs
• Monthly service provider fees
• Banking or payment platform fees

Exact costs vary depending on the service provider and the complexity of the business.

Final Verdict: Is e-Residency Worth It?

Estonia’s e-Residency program has become one of the most popular ways for entrepreneurs to start a location-independent company within the EU.

For freelancers, consultants, and online founders, it offers a way to operate globally while managing everything digitally.

The key to making the process smooth is having the right infrastructure and support.

Start Your Estonian Company with Xolo

Xolo helps entrepreneurs start and run Estonian companies online—from incorporation to accounting and compliance.

Instead of navigating bureaucracy, you can manage your entire company from one platform.

Launch your EU company and start operating globally.

👉 Start your company with Xolo today