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Setting up and operating a business when you are a location-independent freelancer can be challenging. Digital nomads who want to run a solo business can end up spending hundreds of euros to register and set up a company.
Every country has different regulations and taxation. That, combined with requirements such as residency add to the complexity.
Xolo (formerly LeapIN) is an Estonian company based in Tallinn, Estonia and founded in 2015. So far it raised €8 million in funding.
Its core SaaS platform helps set up and run microbusinesses to include accounting, banking and taxation. It relies on the Estonian e-residency infrastructure which allows to manage a business remotely.
Xolo has developed self-service automation tools to manage day-to-day business operations. Its target market is solo entrepreneurs and freelancers based in Europe. Xolo’s USP is to minimise the time and costs of business administration.
The Xolo platform allows to:
- send invoices
- receive international payments in multiple currencies,
- collect and declare VAT
- file corporation taxes
- handle compliance.
It also has accounting and reporting facilities. It is integrated with Transferwise, PayPal, Stripe and LHV (premium plans only), but you can request to support other payment providers.
Xolo estimates its potential market to be 40 million solo entrepreneurs worldwide. Typical customers include web developers, designers, management consultants and freelancers. However, not all types of businesses are covered: at the time of writing Xolo can not support drop-shipping and Fulfilment by Amazon companies, travel agencies and other licenced activities such as financial services and cryptocurrencies companies.
Online customer reviews of Xolo tend to be positive (for example Trustpilot) with many quoting good customer service, fast payments and ease of use.
Prices start at €79 per month (Leap plan) to register and manage a company remotely, or the Go plan free option for invoicing and accounting only charging a 5% fee on transactions. The Go plan comes with its integrated business bank account.
To set up a company you need to pay a €220 government fee and apply for e-residency, which can take between six and eight weeks and you get full ownership of the company. This is not required if you choose the Go plan for invoicing only.
When choosing the Go plan, it is worth noting that before invoices are processed they need to be reviewed and approved by Xolo. This is because Xolo owns the company and gives customers access to its legal framework.
If you are planning to start a solo business, here is the link to Xolo (affiliate).