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Annual reports - what's there to know and where to start from?




It's the time of the year when many receive a note to file their annual reports or a deletion notice from the registry, which comes as a surprise for many. This year the Registry shows no mercy and companies which have not filed the annual report for years are being deleted from the Registry. What to do and how to avoid deletion? Read below!


What is an annual report?

 

An annual report is a document that all legal entities are required to submit to the Commercial Register after the financial year has ended. Usually the financial year matches the calendar year. The deadline for submission of the annual report in Estonia is 6 months after the end of the financial year. If the financial year matches the calendar year, the document is due on June, 30th.

The report provides an overview of the company's financial performance and position, as well as other important information such as the company's management structure, business activities and management report describing the past, present and futuure of the company and business environment in general.

Until 2023 our Business Register’s approach has been quite calm – missed deadlines, even a year or two, did not bring any fines, beside a note to file the reports, but not anymore. Since the number of legal entities is going up and reporting discipline is going down and the Register is determined to change that.


Who is required to submit an annual report in Estonia?


All public companies in Estonia are required to submit an annual report to the Commercial Register. This includes public limited companies (AS), private limited companies (OÜ), non-profit organizations (MTÜ) and state-owned companies.


What is the deadline for submitting an annual report in Estonia?

The deadline for submitting an annual report in Estonia is six months after the end of the company's financial year. For example, if a company's financial year ends on December 31, the deadline for submitting the annual report is June 30 of the following year.


What information must be included in an annual report in Estonia?


The annual report must include the following information:


  • The company's balance sheet

  • The company's profit and loss statement

  • The company's cash flow statement

  • A management report

  • An auditor's report (if applicable)



How to submit an annual report in Estonia


Annual reports can be submitted to the Commercial Register electronically through the e-reporting environment. The e-reporting environment can be accessed through the Company Registration Portal.


What are the penalties for not submitting an annual report in Estonia?


If a company does not submit its annual report by the deadline, it may be fined up to €3,000. Usually €200 fines are issued first though.


Where should you start from?

 

In case you are not VAT liable or you don’t pay social tax each month (which requires reporting on monthly basis), the only report you need to file is the annual report. It’s better to start preparing early, as accountants won’t usually accept new customers when the deadline is only a month or weeks away. If they do, you might be charged double.

 


You do not have an accountant yet? Find an accountant!

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