Xolo reviews : is it worth hiring Xolo’s services?

In this review of Xolo, I share my opinion using Xolo to run a company in Estonia.

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xolo reviews

Besides being able to do everything online, there are different advantages of having a company in one of the most digital countries in the world. Shall we get to know them?

Throughout my journey as a digital nomad, I have always researched a lot about various tools and services. One of the big concerns has always been the accounting, financial and tax management part. To solve this, I made three basic decisions:

  1. Open an account with an international digital bank;
  2. Becoming an E-resident in Estonia;
  3. Opening a company in Estonia;
  4. Use Xolo for my accounting management.

All of them aimed at facilitating my daily life that, as a nomad, I don’t have a fixed address. For this reason, I always need to have services that can be done from anywhere in the world.

Official website: https://www.xolo.io

Why start a company in Estonia?

Those who follow the nomadic lifestyle should know that Estonia is considered one of the most digital countries in the world. Most of its bureaucratic processes are done online, and this makes life much easier for residents.

This made me take a different look at the country, where I did a lot of research. It was then that I discovered the E-residency program, which gives the opportunity for non-residents to open their company in the country.

But as this is not the focus, I will leave the link to another article where I tell you all about e-residency.

Let’s learn more about Xolo, plans, advantages and disadvantages? Continue reading.

Xolo reviews : what is Xolo.io?

Xolo.io, based in Tallinn, Estonia, was founded in 2015 almost simultaneously with the same country’s E-residency program. Essentially, Xolo aims to make it easier for people to set up and run micro-enterprises by offering an online platform that helps the whole process.

Through it is possible to create an online company, access to banking, billing, and accounting services. It also helps to reduce the complexity and cost of involvement in most countries.

Its great differential is to take care of everything, from building a business to its accounting. This includes advice on opening a company and issuing invoices and bills.

How does Xolo self-service work?

After the contract, you will release Xolo to do the accounting of your company. Depending on the plan chosen, the company promises to exempt any work regarding the bureaucratic issues of your business.

They have a complete system with tools to manage and generate reports on the company. You will basically have the job of sending the invoices and monitoring the progress of the processes through the platform.

It is important to highlight some differences, as it is the case of payments. If you choose Xolo GO, your clients will make the payment to Xolo’s IBAN (International Bank Account Number).

Now, if the choice is any other plan, Xolo will set up the opening of an EU business bank account, debit card and an IBAN.

To whom is Xolo.io indicated?

This was the first question I asked when I started to study a little more about Xolo. The services are suitable for those independent professionals (freelancers) or those who have a small business without partners.

Xolo will help autonomous professionals to have their company and services formalized. This way, all the bureaucratic processes will be more formal and can be protected by the laws of the country.

But, besides this, freelancers will also be able to take advantage of the accounting management resources. Xolo will be the legal representative of your company, giving all the necessary support. All this will open a wide range of opportunities and can even double the processes of attracting new clients.

The service modalities presented are called Xolo Leap, Xolo Leap Pro, Xolo Go and Growth. I will explain more details about each one.

What are the steps to use Xolo’s services?

The first step is to understand if your company is within Xolo’s requirements. For, although the company is very modern, it still does not accept some types of services.

Here is a short list of some of the areas that will be accepted should you wish to undertake contracting:

  • Software developers and other information technology activities;
  • Business consultants;
  • Specialists in digital marketing;
  • Translators;
  • Designers;
  • Photo;
  • Content developers;
  • Online educational courses.

To check if your activity is accepted: https://www.xolo.io/activities

The list doesn’t stop there, on the official website you can check all the areas. So, if you meet the required standard, the next step is to register.

You should enter the official website, read all the details presented and then choose the plan. Finally, just follow the steps and wait for the approval. Remembering that most of the modalities will require electronic residence. Xolo promises support in the steps to obtain.

Comparative table between Xolo’s plans

You noticed that I presented some tables throughout the article, but I always like to make it even easier to understand. So, I decided to create a general comparative table between all Xolo plans before concluding the article with my opinion.

This data that I will show you served so that I could better understand each modality. Therefore, I believe it will be great for you too, see:

Xolo GO

Xolo Leap

Xolo Leap PRO

Xolo Growth

Monthly tariff

€ 0

€ 79

€ 119

€ 199

Ver oferta

Ver oferta

Ver oferta

Ver oferta

Time to approve registration

10 minutes

4 weeks

4 weeks

4 weeks

Who is responsible for the company?

Xolo

Owner

Owner

Owner

Annual turnover limit

Unlimited

Unlimited

Unlimited

Unlimited

Mobile Application

Company card

Online and secure banking

Guarantee on deposits

Yes, with LHV*

Yes, with LHV*

Yes, with LHV*

Paying salaries to employees

Up to 3 employees

Up to 10 employees

Share capital of EUR 2500

*Lõhmus, Haavel & Viisemann (Estonian Banking Services Company)

What is the difference between the plans?

The modalities cater to different categories of professionals through various services. Let’s understand a little more:

Xolo Leap Go

Xolo Leap Go is ideal for freelance professionals. I found this mode exceptional because I know that many nomadic friends and freelancers will benefit. The service offered has no requirement to open a company and there is no monthly fee either.

But you must understand that you will need to pay 5% of all payments made. Check the table of services and prices:

Modality

Xolo Leap GO

Price

0 euros / month

Current Promotion

Check offer

Advanced business and management tool

EU registered company

No need to open the company

Accounting and reporting

Payment Gateways

Personal accountant

*The prices shown do not include 20% VAT (Value Added Tax)

Disadvantages of Xolo Leap GO

Despite not having the need to spend a monthly amount, this modality still has some disadvantages, such as:

  • Your services can only be offered to B2B or commercial customers;
  • The work may only be marketed with companies in the European Union and that have valid VAT registration;
  • Unlimited transactions;
  • Payments via Stripe and PayPal are not released.

Xolo Leap and Xolo Leap Pro

Xolo Leap and Xolo Leap Pro were created so that the services offered are aimed at those who own a sole proprietorship. They offer resources for professionals to manage the company, suitable for digital businesses.

You must have an e-residency in Estonia. You will also be charged a monthly fee, which may vary depending on the plan you choose.

To make it easier to understand, I have made a price table. I also put what is included in each plan. This way, you will have a clearer view when comparing. See below:

Modality

Xolo Leap

Xolo Leap PRO

Price

79 euros / month

119 / month

Current Promotion

Check offer

Check offer

Advanced business and management tool

EU registered company

Accounting and reporting

Payment Gateways

Personal accountant

*The prices shown do not include 20% VAT (Value Added Tax)

Main disadvantages

Both the “Leap” plan and the “pro” plan do not give the entrepreneur the possibility to have a personal accountant. So, some transactions and bureaucratic doubts may be hindered.

Those who have an open company and provide digital services know the importance of having a professional to provide support. In addition, it is worth remembering that the two modalities presented require e-residency.

So, you will have to go through the whole process and also bear all the costs, around €335, to obtain it. Another requirement that can also be seen as a disadvantage or hindrance will be the minimum share capital required, which is €2,500 (Xolo until the time of writing this article is responsible for this amount).

Xolo Growth

Xolo Growth is the most complete contract of the accounting firm. It is also aimed at professionals who have individual companies, but need more support.

It features a complete set of tools and a dedicated accountant to expand your business. It can be a great option for those who have capital and want to increase profits. See the table:

Modality

Xolo Growth

Price

199 / month

Advanced business and management tool

EU registered company

Accounting and reporting

Payment Gateways

Personal accountant

*The prices shown do not include 20% VAT (Value Added Tax)

Main disadvantages of Growth

The first disadvantage is in the tuition fee. You should bear in mind that you will pay a fee of €2388 each year. In addition, e-residency will also be required, so in the first year of the company the expenses will be higher.

The Growth plan can pay salaries of up to 10 employees, which can be a limitation in some cases. For, who chooses this modality, generally, has a larger company.

When I started to have more contact with people who own remote businesses, I had no idea that they could grow so much. I ended up discovering that there are online businesses with great teams.

Which segments are not accepted by Xolo?

Even with all the facilities promised by Xolo, the company still does not accept to perform the accounting of some segments. I understand that it is a policy created for security, but I still believe that this reality should change.

Are we going to know what these segments are? It will be interesting for you to identify if your type of work or company is on the list. Check below:

  • Buying and selling physical goods, including direct shipping and Amazon FBA;
  • Financial services;
  • Travel agencies;
  • Games of chance;
  • Sale of alcoholic drinks;
  • Commercial transactions involving cryptocurrencies;
  • Drop-shipping.

You can consult all accepted activities: https://www.xolo.io/activities

Of course, the list doesn’t stop there. Most of the presented services need a special license to be activated. Estonia values this legality, so Xolo decided to leave these activities out.

But the digital medium is so broad that I believe you can get away from those niches.

Is Xolo worth it in terms of tax?

Those who decide to participate in E-residency and open their company in Estonia should be aware of the taxes and other tax returns. These issues are usually presented in different ways in each country, so I will explain briefly.

When money is taken from a company and used to pay salaries, which may be your own, you do not have to pay tax on it in Estonia. However, it must be declared in your home country or country of legal residence.

Now, in the case of dividends, corporate income tax (CIT) must be paid in Estonia. The amount is 25% of the net payment the company receives.

Whether you choose Xolo’s services or not, the rules and payments will be the same. The advantage of having an accounting company is that you will not have to worry about these details.

You can follow everything on the internet, through the platform that Xolo provides.

Review of Xolo: what are the advantages?

I imagine that you must be curious to see my vision about the advantages of Xolo, isn’t it? So I separated some points that I consider as positive in relation to all plans:

  • Different plans and modalities that cater for different types of professionals;
  • All contact is made online;
  • Debureaucratisation of many business processes;
  • Greater security during transactions;
  • Tools that allow greater control over your company;
  • Online service and support that can be requested at any time;
  • Possibility to have an individual accountant to help your project grow;
  • Help with setting up a European Union corporate bank account;
  • Support for the acquisition of e-residency.

As Xolo is an Estonian company, all the team is prepared to adapt your company or service. So, you can compete fairly with other companies in the country.

Michaël Louis
Michaël Louis
I am a digital nomad with a passion for new technologies and travel. We created Planet Nomad to help you on your way to geographical freedom: that of digital nomadism and online entrepreneurship. If you liked this article, please share it or leave your comment, I'll answer it.

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