Annual Report in Estonia

At Eesti Firma, we not only specialize in company formation in Estonia but also offer comprehensive accounting and bookkeeping solutions. Our services include the meticulous preparation and timely submission of annual financial reports, ensuring your business remains compliant with Estonian regulations.

Simplify Financial Reporting with Eesti Firma

With our team’s extensive experience and deep expertise in Estonian financial reporting, we manage every aspect of the process with precision and care. From preparing accurate accounting statements to ensuring full compliance with local accounting standards and legal requirements, we provide a seamless, reliable solution tailored to your business needs.

Filing an Annual Report for an Estonian Company

Entrust us with the preparation and submission of your company’s annual statement in Estonia to ensure full compliance with local accounting regulations.

Let Us Handle Your Accounting — Price from €150

Starting from just €150, our team of experienced accountants provides accurate, timely, and reliable support, allowing you to focus on growing your business.
 

Order Your Annual Report Today

We take an individualized approach for each client, ensuring strict adherence to local accounting standards and legal requirements while maximizing the informativeness and utility of the statements for your business.

Financial Disclosure Requirements in Estonia

Understanding the essential elements of annual disclosure is vital for ensuring compliance with local regulations and maintaining your company’s good standing. For detailed information on Estonian accounting practices, visit the Estonian Association of Accountants.

Key Insights into Reporting Obligations in Estonia

Our guide not only highlights the key requirements but also offers practical tips to streamline the filing process, avoid common errors, and save valuable time. To ensure your statements meet international standards, familiarize yourself with the International Financial Reporting Standards (IFRS).

Additionally, compliance with the Estonian Accounting Act is crucial for maintaining your company’s good standing. Whether you’re new to local regulations or seeking to optimize your current approach, this article will provide actionable insights to help you achieve accuracy and efficiency in your filing

What is an Annual Report

Preparing and filing the annual financial report is mandatory for all legal entities and enterprises registered and operating in Estonia. The fiscal year statement is submitted to the Estonian Business Register, and all information becomes public—anyone can access the accounting statements of any local entity.

Why Financial Reporting Matters for Your Compan

The primary purpose of the annual filing obligation to the Estonian Business Register is to ensure transparency and accountability by providing accurate and reliable information about a company’s financial position and business performance.

This data is essential for government authorities, investors, and other stakeholders to assess the company’s compliance, operational health, and long-term sustainability. By adhering to these requirements, companies not only fulfill legal obligations but also build trust and credibility in the business environment.

Understanding the Financial Year in Estonia

In Estonia, the financial year typically aligns with the calendar year, spanning from January 1st to December 31st. This 12-month period is used by companies to systematically record and report their transactions, ensuring consistency and compliance in disclosing procedure.

This period determines the scope of annual reporting and ensures compliance with local regulations. While most companies use the calendar year, exceptions apply to newly registered companies established in the second half of the year. These companies are permitted to submit a fiscal summary for a shorter reporting period along with their review for the following full year, provided they meet the conditions set by the Estonian Tax and Customs Board.

Key Components of an Annual Statement

The annual statement must follow Estonian accounting rules and international standards, providing a clear and accurate financial overview of the entity.

It should reflect the company’s financial position, operational results, and stability changes during the fiscal year, ensuring transparency for shareholders, investors, and regulators. An year-end report includes:

• Balance sheet presents the company’s position at the end of the financial year, detailing assets, liabilities, and equity.
• Income statement summarizes revenues and expenses during the filing period, showing net profit or loss.
• Cash flow statement provides an overview of cash inflows and outflows, categorized into operating, investing, and economic activities.
• Statement of Changes in Equity outlines equity movements, including contributions to capital, shareholder distributions, retained earnings or losses, and other adjustments.
• Additional information in the annual statement must, at a minimum, include the following annexes:
  • report on the activities of the enterprise – a description of business activities, future plans, and other significant circumstances relevant to the financial summary;
  • explanation as to the financial reporting standard applied in the preparation of the disclosure;
  • accounting principles used to prepare the fiscal year statement;
  • explanations and clarifications on significant items and articles, changes in the main statement and during the reporting period.

Annual Disclosure Deadlines in Estonia

According to § 179 of the Commercial Code of the Republic of Estonia, all enterprises are required to submit the financial report detailing the results of their business activities within six months after the end of the fiscal year.

The deadline for submitting the annual report

For the majority of Estonian companies, whose fiscal year aligns with the calendar year, the deadline for submitting annual statements to the regulatory authorities is June 30th each year.

Missed the Financial Statement Deadline?

Many Estonian companies often miss financial reporting deadlines, but the Commercial Register Act grants authorities more power to enforce compliance. Initially, minor delays may not lead to issues. However, prolonged delays prompt actions such as:

• Warning of Fine: the Commercial Register initially warns the enterprise and provides an additional 30 days to submit the data. If the data is submitted correctly within this period, the issue is resolved.
• Fine: if the report is not submitted by the extended deadline, a fine of up to EUR 3,200 may be imposed. Paying the fine does not exempt the enterprise from submitting the report, and repeated fines may follow.
• Fine for Board Members: in addition to fining the undertaking, the law permits fines on responsible individuals, usually board members, for late submissions.
• Warning of Removal: if warnings are ignored, the authority may issue a warning about forced company removal, giving a 6-month deadline to submit the overview before initiating removal procedures.
• Forced Removal: if all measures fail and reports remain unsubmitted, the Commercial Register can forcibly remove the entity.

For more information, explore the Estonian Chamber of Commerce and Industry for insights into business regulations, the Estonian Tax and Customs Board for tax-related guidelines, the International Federation of Accountants (IFAC) for global accounting standards, and Statistics Department for economic and business statistics in Estonia.
 

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Step-by-Step Guide to Submitting an Annual Report

Submitting your accounting disclosure is a crucial compliance requirement for businesses in Estonia. The primary method for submission is through the Estonian e-Business Register, a convenient and secure online portal. This platform allows companies to file from anywhere globally, particularly beneficial for e-Residents. Filing online requires the entity’s general manager (a member of the management board) to possess a valid Estonian electronic signature, which can be obtained using tools like an ID-card, Smart-ID, or e-Residency.

For companies whose board members lack an electronic signature, alternative methods include manual submission or involving a notary. Manual submission involves signing the necessary documents, prepared by an accountant, and submitting scanned copies to the Business Register. Notary involvement ensures the authenticity of the report and guarantees legal compliance.

Benefits of Hiring a Professional Accountant

Filing an annual report requires a strong understanding of Estonian accounting principles and tax laws. Engaging a professional accountant simplifies the process and ensures that all entries comply with regulations, minimizing the risk of errors or penalties. Accountants handle the preparation of standardized financial disclosures, submission processes, and adherence to local legislation.

For non-resident general managers without an Estonian electronic signature, professional accountants are especially valuable. They assist in preparing documents for manual submission and ensure that scanned, signed copies are correctly submitted. By leveraging their expertise, you can save time, reduce errors, and gain peace of mind, knowing that your company’s financial compliance is managed accurately and efficiently.

What If Your Company Was Inactive

Dormant companies in Estonia must file a annual disclosure with the Business Register annually, even without transactions. This ensures compliance with legal obligations and keeps your business in good standing.

Dormant Financial Statements: What You Need to Know

A dormant statement, also known as a zero financial activity report, is a declaration submitted by entities that experienced no income, expenses, or other business operations during the disclosing period. Despite the absence of activity, this filing serves as official confirmation of the company’s existence and compliance with local legislation.

The dormant financial report is relatively simple to prepare, yet it plays a crucial role in maintaining compliance with Estonian regulations. Despite its simplicity, failing to file it on time can result in serious consequences, including penalties or the potential removal of the entity’ from the register.

Cost Breakdown for Preparing Annual Reports

The cost of preparing an annual report in Estonia depends on the complexity of your company’s economic activity. Dormant companies generally require a simpler process, while active businesses may face higher costs due to more detailed reporting needs.

Costs for Active Companies

If your company was economically active during the year, preparing the annual statement can be a complex process due to the higher volume of transactions. Factors that influence the cost and complexity of report preparation include:

• Transaction Volume: More transactions require additional processing time.
• Document Quality: Well-organized records help streamline the process.
• Industry Requirements: Certain sectors may have unique reporting standards or tax regulations.

On average, preparing a financial disclosure for an active business costs around €500, but this may vary depending on the specifics of your business.

Pricing for Inactive or Dormant Companies

If your company had no transactions during the year, the process is significantly simpler and more affordable. The minimum cost for preparing and submitting a dormant company’s annual report starts at €150. This fee covers the preparation of required forms and submission to the tax authorities.

Tips to Save Time and Reduce Costs

While the cost of preparing a financial disclosure depends on the complexity of your accounting records, you can implement strategies to minimize expenses:

• Organize Your Documentation: Maintain well-structured accunting records to save time and reduce fees.
• Use Modern Accounting Software: Automation can simplify processes and lower costs.
• Regular Communication with Your Accountant: Proactive discussions help avoid last-minute complications.

Many businesses opt for professional accountants to ensure compliance, accuracy, and time savings. By choosing expert services like those offered by Eesti Firma, you can streamline the disclosing process and focus on your business. Contact us today for detailed pricing and reliable support.

Professional Help for Your Annual Review

If you’re looking for assistance with preparing and filing your annual report in Estonia, our team of professional accountants is ready to help. We ensure that your accounting documentation meets all legal requirements while saving you time and reducing stress.

Getting Started

To receive an accurate quote for our services, simply provide us with a brief overview of your company’s activities and your transaction statements. This allows us to assess the complexity of your financial disclosures and offer tailored support.

Fast and Reliable Service

Our accountants typically require just one week to prepare and review your annual statement. During this time, we ensure every detail is accurate and compliant with Estonian regulations.

Don’t Delay!

Delaying the submission of your entity’s financial statement increases the risk of fines and non-compliance. Let Eesti Firma handle all the formalities so you can focus on your business’s growth. Contact us today for professional assistance and ensure your enterprise remains in good standing.

FAQ | Frequently Asked Questions

Below, you will find a list of frequently asked questions regarding the preparation and submission of the annual report in Estonia, which our consultants encounter during their work. Familiarizing yourself with this material may be beneficial for you.

This FAQ section covers the most common concerns related to accounting disclosure submissions in Estonia. If you don’t find the answer to your specific question, our team is always ready to provide further clarification.