Choosing a Service Provider

Why you need a service provider

Every Estonian OUe needs a local contact person and a registered business address in Estonia -- this is required by law (source: Estonian Commercial Code, as of July 2026). Since you as an e-Resident don't live in Estonia, a service provider fills this role.

But a service provider is far more than just a mailbox address. They are your accounting team, your substitute tax advisor for the Estonian side, and your compliance safety net. Without one, you'd have to understand Estonian accounting law, file monthly tax returns with the tax authority, and prepare the annual report in Estonian.

You could theoretically do this yourself. But if you don't speak Estonian and don't understand local accounting law: don't. The EUR 59-139/month is worth every cent. I don't know a single active e-Resident who handles their own accounting.

The Estonian commercial register (ariregister) requires every company to have a contact person in Estonia. This person is responsible for communicating with authorities and must be able to respond to inquiries within 3 business days. If you can't fill this role yourself (because you're sitting in Barcelona, Bangkok, or Buenos Aires), you need a service provider.

What a service provider actually does

An e-Residency service provider handles all administrative obligations of your Estonian company. Here's what that means in detail -- and why it's more than you think.

Virtual business address

Your company needs a registered address in Estonia. The service provider provides this. Mail is received and forwarded digitally. This is not a shell company -- it's the legally required contact address for authorities and the commercial register.

The address appears in the public commercial register. Customers and business partners can look it up. All three major providers use professional office addresses in Tallinn -- no residential addresses or PO boxes.

Accounting and tax returns

The service provider records your income and expenses, prepares the monthly tax returns (TSD declaration for payroll taxes, KMD declaration for VAT) and files them with the Estonian Tax and Customs Board (emta.ee). You upload invoices and receipts to the dashboard -- the team handles the rest.

In practice, the monthly workflow looks like this: you upload your expense receipts, the accountant categorizes them, prepares the tax returns, and files them on time. You receive a monthly financial report with revenue, expenses, and profit. With Xolo, this process takes 5-10 minutes of your time per month.

VAT returns

If your company has a VAT number, monthly VAT returns are filed. Even at EUR 0 revenue. The service provider knows the reverse-charge rules for EU transactions and ensures the returns are correct. Mistakes with VAT can be expensive -- fines start at EUR 100 per late return. More on this in the guide Taxes Explained.

Annual report

The annual report (majandusaasta aruanne) must be filed by June 30. The service provider prepares the balance sheet, income statement, and notes. You review and sign digitally with your e-Residency card. In my case, this takes 20 minutes per year. Without a service provider, you'd need to know Estonian accounting standards and prepare the report in the correct format -- practically impossible for non-Estonians.

Invoicing

All three major providers have integrated invoicing. You create invoices directly in the dashboard, which are automatically recorded in the accounting. PDF export, recurring invoices, customer management -- all included. The invoices automatically contain the correct tax notes (reverse charge, VAT number, company details).

Banking integration

The service provider connects to your business account (Wise, LHV, or Revolut). Transactions are automatically imported and categorized. This saves hours of manual data entry. The integration works both ways: incoming payments are automatically matched to the right invoices, outgoing payments to the corresponding expense categories.

Company formation

All three providers also offer company formation as a service. They prepare the founding documents, file them with the commercial register, and guide you through the entire process. Setup pricing differs sharply: Xolo charges no setup fee (you pay only the state fees through their platform), 1Office bundles formation into a EUR 315 one-time package that includes the state fee, and Companio charges EUR 390. More on this in the guide Company Registration.

The main players

As of July 2026, three providers dominate the market for e-Residency services. Together they serve an estimated 80% of all e-Resident companies (source: e-Residency Marketplace, as of July 2026). There are also smaller providers and local accounting firms, but for most new e-Residents, these three are the relevant choice.

All prices as of July 2026, excluding VAT. Xolo Leap has no setup fee -- the state fees (EUR 265 registration + EUR 25 + VAT registry fee) are paid through the platform. Companio's and 1Office's setup fees are one-time; 1Office's EUR 315 formation package already includes the state fee, registered address, and contact person. Monthly costs are billed annually or monthly -- with annual billing, some providers offer 10-15% discount.

Xolo in detail

Xolo (formerly LeapIN) is the market leader among e-Residency service providers. The company was founded in 2016 in Tallinn and has specialized in e-Residents and digital nomads from the start (source: xolo.io, as of July 2026). With over 10,000 companies served, Xolo is the provider with the most experience in the market.

The history

Starting under the name LeapIN, the company initially offered its services from EUR 49/month or as 5% of outgoing payments. The rebrand to Xolo happened in 2019. Prices have evolved since then, quality has improved. In the early days there was even German-language support -- today everything is in English, but the quality remains consistently high.

Xolo has evolved over the years from a pure accounting service to a full-service platform. The dashboard is the most modern on the market: invoicing, expense management, tax overviews, document archive -- all in one place. The mobile app (iOS and Android) enables invoicing and receipt capture on the go.

The current plan structure

Xolo restructured its pricing. The company-management product is Xolo Leap, now in four tiers (all excluding VAT, no setup fee -- state fees are paid through the platform):

The core is the same across tiers: accounting, tax returns, dashboard invoicing, banking integration (Wise, LHV, Revolut), and the annual report. The higher tiers buy you more capacity and more service -- if you're on Starter, expect the leanest version of the package and check Xolo's current feature matrix for what your specific business needs (e.g., transaction volume or support level).

Xolo Go is now a different product: freelancing without your own company. It costs EUR 0/month on a pay-as-you-go basis -- you invoice clients through Xolo's entity and pay per transaction instead of running your own OUe. Useful for testing freelancing before incorporating, but it's not company management. This guide is about Leap.

Companio and 1Office

Companio (from EUR 89/month)

Companio used to be the budget option -- that's no longer the case. Founded in 2018 in Tallinn, they offer a modern dashboard in Spanish and English. The entry plan is now PRO at EUR 89/month plus a EUR 390 setup fee. Above that: Premium at EUR 199/month and Ultra at EUR 594/month.

Strengths:

• Modern, clean dashboard
• Good onboarding process with video tutorials
• Spanish-language support (relevant for the growing Latin American community)
• Fast response times in chat (1-2 business days)

Weaknesses:

• No longer the cheapest: EUR 89/month vs. Xolo Leap Starter at EUR 59, plus a EUR 390 setup fee that Xolo doesn't charge
• Smaller team than Xolo (less redundancy during sick leave/vacation)
• Fewer banking integrations (no Revolut)
• Shorter track record (since 2018 vs. Xolo since 2016)
• Less experience with complex tax scenarios (e.g., withholding tax on US payments)
• No German-language support

1Office (EUR 315 formation + from EUR 90/month)

1Office is the most comprehensive provider with the broadest service range. They offer not just accounting but also full legal support, physical office space in Tallinn, and company formation as a complete package. Their pricing is modular: EUR 315 one-time for formation (including the state fee, registered address, and contact person), then EUR 15/month maintenance plus accounting from EUR 75/month -- full-service accounting from EUR 135/month.

Strengths:

• Full legal support (contracts, licenses, legal advice)
• Formation package (EUR 315) already includes the state fee -- transparent one-time pricing
• Physical office space rentable in Tallinn (from EUR 200/month)
• Broadest service offering of all three providers
• Also suitable for larger companies with multiple employees
• Notarial services available

Weaknesses:

• Modular pricing adds up: maintenance + accounting + extras can exceed the flat packages of Xolo or Companio
• Only LHV banking integration (no Wise, no Revolut)
• Dashboard less modern than Xolo and Companio
• Higher complexity in onboarding (more forms, longer process)
• Longer support response times (2-5 business days per community feedback)

1Office is the right choice if you need more than just accounting -- such as legal advice for contracts, physical presence in Estonia, or support with licenses and permits. For freelancers and solo founders, it's usually overkill.

How to decide

The provider choice depends on five factors. Cost is only one of them -- and usually not the most important.

1. Monthly revenue

• Under EUR 2,000/month: Xolo Leap Starter (EUR 59/month) -- since Xolo's restructuring, the cheapest full package is also the best one
• EUR 2,000-5,000/month: Xolo Leap Standard (EUR 99/month) -- the sweet spot of price and performance
• Over EUR 5,000/month: Xolo Leap Pro (EUR 139/month) or Premium (from EUR 259/month) -- more service is worth it at this level

The monthly fee should not exceed 3-5% of your revenue. At EUR 1,000 monthly revenue, even EUR 59 for Leap Starter is 5.9% -- borderline. Below EUR 1,000 monthly revenue, you should fundamentally consider whether an Estonian company makes economic sense.

2. Banking

If you use Wise (and you should -- see Banking Setup): Xolo or Companio. Wise integration saves you 2-3 hours of administrative work per month. 1Office only has LHV integration -- and getting an LHV account as a non-resident is difficult. Many LHV applications are rejected, and the process takes 2-4 weeks.

3. Response time

Xolo's higher Leap tiers offer priority support; on Starter, expect standard response times of 1-2 business days. Companio: 1-3 business days. 1Office: 2-5 business days (per community feedback, as of July 2026). If you have time-sensitive questions (e.g., before a tax deadline or during a government inquiry), fast support is invaluable. For day-to-day needs, 1-2 business days is sufficient.

4. Language support

All three offer English support. Companio additionally has Spanish. No provider currently offers German-language support. Your English needs to be good enough to discuss accounting questions via chat. The dashboards are all in English -- even Companio's Spanish interface doesn't cover all technical terms.

5. Warning signs when choosing a provider

Switching providers

Switching providers is possible but involved. The process takes 1-3 months and includes migrating all accounting data, changing the contact person in the commercial register, and handing over open tax returns. It's not a disaster, but it's not something you start lightly either.

What happens during a switch:

1. Engage new provider -- the new provider initiates the handover process and contacts the old provider
2. Transfer accounting data -- all receipts, invoices, bank statements, and historical bookings are migrated
3. Change contact person -- the entry in the Estonian commercial register is updated (processing time: 3-5 business days)
4. Change business address -- the registered address switches to the new provider
5. Complete open returns -- the old provider files any outstanding tax returns and then formally hands over

The costs for a switch are EUR 200-500 (one-time, with the new provider). Some providers cover migration costs as a welcome offer. The regular setup fee at the new provider also applies -- ask if it's reduced for switches.

The most common reason for switching: the provider doesn't grow with the business. What works at EUR 2,000 monthly revenue isn't enough at EUR 10,000. More complex transactions, multiple revenue streams, international clients -- at some point you need a dedicated accountant instead of just a dashboard.

My recommendation

For most freelancers and solo founders: Xolo Leap -- Starter (EUR 59/month) if you're starting out, Standard (EUR 99/month) once you're established. Since Xolo dropped its setup fee and introduced the EUR 59 Starter tier, the recommendation got simple: the most reliable provider is now also the cheapest. The Wise integration alone saves you 2-3 hours of accounting work per month. The dashboard is the best on the market. And with 8+ years of experience, Xolo has seen every tax scenario.

The old logic -- "Companio if you're on a budget, Xolo if you can afford it" -- is dead. Companio's entry plan costs EUR 89/month plus a EUR 390 setup fee. Xolo Leap Starter costs EUR 59/month with no setup fee. Companio still makes sense if you specifically want Spanish-language support; otherwise the math no longer favors it.

Above EUR 5,000+/month revenue: Xolo Leap Pro (EUR 139/month) or Premium (from EUR 259/month). More hands-on service is worth it at this revenue level -- the premium over Standard is a fraction of a percent of your revenue, irrelevant compared to the time saved and errors avoided. My accountant has brought me more than EUR 1,000 in tax optimization in one year -- through better expense categorization alone.

If you need more than an accounting solution -- legal advice, physical office, license applications: 1Office. But for 95% of e-Residents, that's overkill.

The next step after choosing your provider is Company Registration. Your chosen provider guides you through the entire registration process. You should have understood your Estonian company's taxes beforehand -- your service provider handles the execution, but the decisions are yours.

Frequently asked questions

Can I switch service providers?

Yes, a provider switch is possible at any time. The process takes 1-3 months and costs EUR 200-500 with the new provider. The new provider handles the migration of accounting data, the change of the contact person in the commercial register, and the new business address. Still, choose carefully the first time -- the switch is doable, but it costs time and double monthly fees during the transition month.

What happens if my provider goes bankrupt?

Your company exists independently of the service provider. It's registered in the Estonian commercial register and continues to exist regardless of what happens to the provider. You'd need to engage a new provider to take over the contact person and business address roles. You should regularly export and back up your accounting data -- all three major providers offer this in the dashboard. The deadline for changing the contact person is 30 days after the previous contact person ceases (source: Estonian Commercial Code, as of July 2026).

Do I need a separate tax advisor?

For the Estonian side: no. Your service provider handles all Estonian tax returns, the annual report, and communication with the tax authority. For your personal tax situation in your country of residence: yes, absolutely. The interaction between Estonian corporate tax and your personal income tax is complex. A tax advisor with cross-border experience costs EUR 200-500 for an initial consultation. The investment pays off -- mistakes in your personal tax filing can be expensive. More on this in the guide Taxes Explained.

Is Xolo really better than Companio?

"Better" depends on your priorities -- but the price argument for Companio is gone. Xolo has the longer track record (since 2016 vs. 2018), more banking integrations (Wise, LHV, Revolut vs. only Wise and LHV), and since the pricing restructuring also the lower entry price: Leap Starter at EUR 59/month with no setup fee vs. Companio PRO at EUR 89/month plus EUR 390 setup. Companio has a modern dashboard and Spanish-language support -- if that's important to you, it's still a solid choice. For everyone else: Xolo. My personal recommendation after 8+ years: Xolo -- because of the dashboard, the Wise integration, and the experience with complex tax questions.

What is the difference between Xolo Go and Xolo Leap?

They're different products since Xolo's restructuring. Xolo Leap is for running your own Estonian company -- four tiers: Starter (EUR 59/month), Standard (EUR 99/month), Pro (EUR 139/month), and Premium (from EUR 259/month), all excluding VAT and with no setup fee. Xolo Go is freelancing without your own company: EUR 0/month, pay-as-you-go -- you invoice clients through Xolo's own entity instead of incorporating. Go is a way to test freelancing; Leap is what you need for an actual e-Resident company (as of July 2026, source: xolo.io).

Continue reading

• Company Registration -- The next step after choosing your provider
• Banking Setup -- Business account and payment processing for your company
• Taxes Explained -- What your provider handles for you and what it doesn't