Running a business in Estonia comes with certain obligations, and one of the main ones is submitting an annual report every year. Even if your company is small, this procedure is mandatory for everyone registered in the Commercial Register. Here’s why it’s necessary and how it works in practice.
Why the Annual Report is Mandatory
Filing an annual report is a legal requirement. Regardless of whether you had active operations or your company “broke even,” the report must be submitted every year. This confirms that your business exists and fulfills its obligations. Without the report, you cannot officially close the company, pay out dividends, or maintain a reputation as a reliable partner.
Who Needs It and Why
The annual report is the main source of information about your company’s status:
Banks analyze the report when considering loan applications.
Suppliers and partners look at your financial indicators to assess reliability.
Government agencies use the data for control and statistics.
Owners get an objective picture: how profitable the business is and whether there are prospects for growth.
In Estonia, reporting is completely transparent: anyone can view your figures on the state portal. This increases trust and makes business interaction easier.
How and When to Submit the Report
The general deadline for submitting the annual report is by June 30 of the following year. For example, for 2024, the report must be submitted no later than June 30, 2025.
The report can be submitted using either an electronic signature or a regular one.
Conclusion
The annual report is a mandatory part of any business’s life in Estonia. Timely and accurate submission of reports helps maintain your reputation, build trust with partners and banks, and avoid fines and other issues.