At Eesti Firma, we specialize in more than just company formation in Estonia. A core part of our services is providing comprehensive accounting and bookkeeping solutions, including the preparation and submission of annual financial reports.
With our team’s extensive experience and deep expertise in Estonian financial reporting, we handle every aspect of the process, ensuring full compliance with local accounting standards and legal requirements.
Annual Report for Estonian company
Ensure full compliance with Estonian accounting regulations by entrusting us to prepare and submit your company’s annual financial statement in Estonia.
Starting from just €150, our team of experienced accountants provides accurate, timely, and reliable support, allowing you to focus on growing your business.
We take an individualized approach for each client, ensuring strict adherence to Estonian accounting standards and legal requirements while maximizing the informativeness and utility of the statements for your business.
In this main article of our series on financial reporting, we will explore the key aspects of preparing and filing annual reports in Estonia. We’ll discuss essential elements of financial disclosure and provide you with valuable tips and recommendations to ensure compliance and accuracy.
What is an Annual Report in Estonia?
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 financial statements of any Estonian company.
The main purpose of the financial reporting obligation to the Estonian Business Register is to provide objective and reliable information on the company’s financial position and business results to government authorities and other stakeholders.
When is the Finacial Disclosure Due?
In most cases, the deadline for submitting the annual report is June 30th of the following year. Failing to meet this deadline can lead to penalties, including fines and, in more severe cases, the potential removal of the company from the register. For more information on submission deadlines, visit our article on annual report submission deadlines in Estonia.
If the report is not submitted, the Business Register may initiate the removal of your company, which could result in its permanent removal. To understand the consequences of missing the deadline, please refer to our article on company deregistration for non-compliance.
What does the Estonian annual financial report consist of?
The annual report must strictly comply with established Estonian accounting rules and international standards, presenting a comprehensive and accurate financial picture of the organization.
It is crucial that the fiscal year statement reflects the real financial position, operational results, and changes in the company’s financial stability during the reporting period, ensuring transparency and reliability of the information provided to shareholders, investors, and regulatory authorities.
The company’s year-end report in Estonia must include the following components:
Balance Sheet
The balance sheet provides information about the company’s financial position, including its assets, liabilities, and equity as of the last day of the financial year (typically 31 December).
Income Statement
The income statement details the company’s revenues and expenses during the reporting period, reflecting key financial indicators such as income, expenses, and net profit or loss.
Cash Flow Statement
The cash flow statement illustrates the company’s cash inflows and outflows over the reporting period, including cash receipts, cash equivalents, and payments made during business activities. These are categorized into cash flows from operating activities, investing activities, and financing activities.
Statement of Changes in Equity
This statement outlines the movements in the company’s equity during the reporting period, including contributions to the authorized capital, distributions to shareholders, retained earnings or losses, and other significant factors affecting the equity’s size.
Additional Information
Depending on the company’s business specifics, the annual statement in Estonia must include additional information. At a minimum, the following annexes should be attached:
a) report on the activities of the enterprise – a description of the company’s activities, future plans, and other significant circumstances relevant to the financial summary;
b) explanation as to the financial reporting standard applied in the preparation of the disclosure;
c) accounting principles used to prepare the fiscal year statement;
d) explanations and clarifications on significant items and articles, changes in the main statement and during the reporting period.
In compiling annual statements, companies use standards based on the International Financial Reporting Standards, adapted to Estonian regulations. These ensure transparency, comparability, and reliability of financial information across different sectors.
How to Submit an Annual Report?
The main method for submitting a financial disclosure to the Estonian Business Register is through the online portal. To grant your accountant access for preparing and filing the statement, the company’s general manager (member of the management board) must have a valid Estonian electronic signature, such as an ID-card, Smart-ID, or e-Residency.
For non-resident general managers without an Estonian identification code or electronic signature, annual statements can be signed manually. In such cases, your accountant will complete the necessary forms, generate the standardized disclosure, and submit a scanned copy signed by the general manager to the Business Register.
Engaging a professional accountant for this process ensures not only accuracy but also full compliance with Estonian regulations, saving you time and reducing the risk of errors. For a more detailed guide on filing, check out our resource on how to file an annual report.
What If My Company Was Inactive?
Even if your company has been inactive during the financial year, you are still required to submit a dormant financial statement to the Estonian Business Register. This ensures compliance with legal obligations and keeps your company in good standing. For more details on how to file a disclosure for an inactive company, visit our guide on the dormant company annual report.
How Much Does an Annual Report Cost?
The cost of preparing and submitting an annual disclosure in Estonia starts at a minimum of €150, depending on the complexity of the company’s financial records and the services required. Smaller companies with simple accounting may pay the minimum, while larger or more complex companies could face higher fees.
To ensure accuracy and compliance, many businesses opt for professional accountants, helping to avoid mistakes and save time. For detailed information on pricing, visit our guide on the cost of an annual report in Estonia.
Need Help?
If you need assistance with preparing and filing your annual report in Estonia, our professional accountants are here to help. To provide an accurate quote, simply share a brief overview of your company’s activities and your transaction statements.
Our accountants typically need one week to prepare and review the disclosure. The cost of our services starts from just €150, ensuring compliance and accuracy for your business.
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.
- What is the annual report of an Estonian company?
The annual report in Estonia is an official document containing information on the company’s financial indicators and activities for the financial year.
- Where is the annual report submitted in Estonia?
In Estonia, the financial statements is submitted to the Estonian Business Register (Commercial Register).
- What are the deadlines for annual report submission?
The financial disclosure should be submitted within 6 months after the end of the company’s financial year. In most cases, when the financial year matches the calendar year, the report should be submitted no later than June 30 of the following year.
- Should the company submit the annual report, if it was inactive?
Yes. Even companies that did not conduct any economic activity during the year must submit the annual disclosure under general conditions. In this case, the report will reflect the absence of financial transactions and activity, which is also important for the Estonian Business Register.
- What data should be included in the financial statement?
The financial disclosure report should contain information on the company’s financial indicators, such as: balance sheet, profit and loss statement, cash flow statement, annexes clarifying the financial data, auditor’s report (if an audit is obligatory).
- How to submit the annual report in Estonia?
The financial disclosure is submitted via the e-portal of the Estonian Business Register. To access the portal, you will need an Estonian electronic signature (ID card, e-Residency, or Mobile-ID). If you do not have an electronic signature, you may use the services of a local accountant to submit the financial report.
- What will happen if I do not submit the annual report on time?
If the annual accounting statement is not submitted on time, the Business Register may impose a fine, the amount of which depends on the company type, seriousness of the breach, previous behavior, and other circumstances. If penalties do not have any effect, the compulsory liquidation of the company with its subsequent exclusion from the Business Register may be initiated.
- Is an audit of the year-end financial summary of an Estonian company obligatory?
A company should perform an audit if it meets at least two of the following three criteria: (1) the book value of its assets exceeds 2 million EUR; (2) its annual turnover exceeds 4 million EUR; or (3) the average number of its employees exceeds 50 people.
- Where can I find information on the submitted disclosure statement of other companies?
Information on annual reports submitted by other companies is available on the Commercial Register website, where you can search by company name or registration number. All financial reports of the company can be viewed in PDF format, allowing you to review key financial indicators of the companies you are interested in.
- What happens after the submission of the annual report?
After submission, the Business Register verifies the documents and updates the corresponding information in the register. If mistakes or inaccuracies are found, you may need to provide additional clarifications or make corrections to the existing financial reports.
- Can I correct the disclosure statement after it has been submitted?
Yes. If you find mistakes or inaccuracies after submission, you may submit a corrected version. It is highly recommended to do this promptly to avoid punitive measures or inquiries from regulatory authorities.
- Can the fiscal summary be submitted in English?
No. All documents submitted to the Estonian Business Register must be in Estonian. If your financial report is initially in English or another language, you must have it translated into Estonian before submission.
- What are the consequences of providing false information in the annual report ?
Providing false information is a violation of Estonian law and may lead to penalties, administrative, and in some cases, criminal sanctions. Additionally, it can negatively affect the company’s reputation and lead to issues with tax authorities and other regulatory bodies.
- Is it required to post the disclosure on the company's website?
Estonian legislation does not require posting the fiscal summary on the company’s website. However, some companies choose to do so voluntarily to ensure transparency and provide information to potential investors, customers, and partners.
- Can I change the financial year of the company?
Yes. Companies can change their financial year by adopting a resolution by the founders and updating the Business Register. However, changing the financial year may affect the deadlines for submitting the fiscal summary.
- What should I do if I have questions about preparing and submitting the fiscal summary?
If you have questions, you may seek assistance from professional accountants and financial consultants experienced in Estonian accounting practices.
- Can my company be liquidated due to untimely submission of the annual report?
Yes. Multiple failures to submit the financial disclosure can lead the Business Register to initiate liquidation proceedings. This typically occurs after prolonged non-compliance and multiple warnings.
- How to make changes to the disclosure after it has been submitted?
If you need to correct the financial disclosure, submit a revised version to the Business Register, indicating that it is a corrected report.
- Who is responsible for the submission of the annual report?
The Board Members (Directors) of the company are responsible for the correct and timely submission of financial statements.
Our experts have extensive experience in preparing fiscal statements, ensuring compliance with all Estonian regulations. Should you have any additional questions, feel free to contact us for professional guidance.
