In February 2023, Estonia rolled out significant changes affecting how businesses handle their annual reports.
Previously, many businesses struggled with late submissions or even neglected to file altogether. The government’s approach used to be relatively lenient, often limited to reminders and occasional fines, with forced closures being a rare consequence.
However, the importance of timely submission cannot be overstated. It serves as a crucial tool for partners and creditors to evaluate a business’s stability and adherence to regulations, thereby fostering trust in its operations.
In 2023, the Estonian government approved amendments to the Commercial Code and enacted the new Commercial Register Act, aimed at enhancing compliance with annual report submissions, effective February 2023.
Under the new regulations, there’s a notable increase in the severity of penalties for tardy submissions. Fines now range from €200 to €3,200, taking into account various factors such as past submission history.
Additionally, certain management procedures, such as mergers, are prohibited until any outstanding annual reports are submitted.
Start preparing your annual report today!
The annual report deadline falls on June 30th each year. However, considering the potential complexity and the consequences of failing to submit it on time, we strongly advise you to commence preparations for your business’s annual report as soon as possible.
It’s common for a significant number of businesses to begin their preparations as late as June, resulting in local accounting firms becoming overwhelmed and potentially leading to increased service costs due to market demand.
If you wish to start preparing and submitting your annual report today, we are here to help! Feel free to reach out!
