Xolo (Formerly LeapIN) Review (e-Residency Estonia) – Follow Up Questions

In my previous LeapIN review, I mentioned that LeapIN (now called Xolo) doesn’t allow cash transaction for the simple reason that they are very difficult to track.

Today, I received the following question on my YouTube channel.

LeapIn Review e-Residency

This led me to believe that maybe my previous review about LeapIN left some room for confusion.

I’ve replied to the above comment already, but let me give you a more detailed explanation here.

If I can’t withdraw cash from the ATM using my company debit card – how am I supposed to get money out of my account?

To be clear, the company debit card (such as the one you get from LHV Pank) allows you to withdraw cash from almost any ATM worldwide. That is, unless you disable cash withdrawals via the online banking system.

When I say if you are using LeapIN, you can’t withdraw money from the ATM – all I mean is that LeapIN doesn’t allow cash withdrawal – not that you can’t do that.

The card still works for ATM withdrawals. It’s just that LeapIN might decide to end working with you if you don’t abide to their rules.

LeapIN is an accounting service for the Estonian e-Residency program. Their plans start at 59€ per month. I am assuming that one of their goals is to get more people started on the e-Residency program.

That’s only possible if costs for the accounting service are affordable. Allowing customers to withdraw cash would add it’s own set of complexities which would drive up costs.

If you still want to withdraw cash – you simply need to find another accounting service provider for your e-Residency business.

I would argue that you don’t ever need cash while operating your e-Residency company. Since the business debit card (and company funds in general) can only be used to pay for business-related expenses, I’ve never been in a situation in which I needed to pay cash.

Common business-related expenses:

  • Software/Hardware
  • Flights/Transportation Costs
  • Accommodation

All of these are either paid online (via debit card) or in-person – also via debit card. Cash just isn’t part of the equation.

e-Residency, LeapIN and Amazon FBA

Using e-Residency for Amazon FBA is another hot topic. Xolo/LeapIN doesn’t (yet) accept customers whose business model is Amazon FBA.

They might in the future, but for now, you’d have to go with another accounting service provider, such as Nordic Consult.

How do I get a business address in Estonia?

I depends.

You need a business address in Estonia to establish your e-Residency company. When you sign up with Xolo (formerly LeapIN), you also get a business address.

If you decide to go with an alternative provider, you will have to get a business address separately. Which will cost you anywhere between 50-150€ per month (depending on which services are included).

Why do you need a business address in Estonia if everything is supposedly ‘paperless‘?

Well, any business needs a physical location …

Besides, some services (Google AdWords, think YouTube Ad Revenue) require verification of your business address. Google AdWords, for example, sends you a verification code via mail.

Without a physical address, this would obviously not work.

LeapIN does open the mail received in your company’s name and forward you the information via email.

Can I hire employees for my e-Residency business?

Yes, you can and LeapIN allows you to do that.

However, from a practical standpoint, it’s often smarter to hire a freelancer instead in which case there’s no paperwork involved, no social security contributions to be paid.

In short, it’s cheaper and you have maximum flexibility (since you can end the contract at any time).

When you hire a freelancer, services rendered would simply qualify as company expenses. The invoice, you upload via the LeapIN dashboard.

Here’s what the LeapIN dashboard looks like.

LeapIN Xolo Dashboard

Starting Your e-Residency Business in Estonia?

While setting up a company in Estonia via the e-Residency program is very straight-forward, you might still have some questions along the way.

I recommend you read through the following articles, which provide additional info.

If you’d like to work with me directly – to setup your e-Residency company and start your online business from scratch – you can continue here.