Company formation and management in Estonia

Solving nonstandard business issues

Share capital payment in cryptocurrencies

Accounting for crypto-assets

Remote business management

Location-independent business with minimal cost and red tape

A fully digital end-to-end service

Amazon FBA business accepted

Complex ownership structures with multiple shareholders

Accounting & tax compliance services

We render a full range of accounting and tax compliance services for resident and non-resident companies. 

Our accounting services are tailored towards the needs of:

(a) small and medium businesses with cross-border transactions and; 

(b) companies dealing with crypto-assets.

 

The accounting service available to you includes, but is not limited to:
  • Control and processing of accounting documents
  • Monthly compilation of the balance sheet and the income statement
  • Payroll calculation
  • Preparation of sale invoices and checking the payments
  • Calculation of fixed assets, accounts receivable and account payables
  • Calculation and declaration of taxes
  • Compilation of accounting regulations
  • Compilation of the annual report
Our employees have broad expertise in Estonian and the European Union accounting, taxes, laws, economy and local practice of business relations.
Therefore we also offer tax and accounting advisory services so that you do not need to spend time on researching particular jurisdiction in depth. At the same time, our accounting reports help you to make smarter finance decisions and develop your business strategy.

Accounting for crypto-assets

Crypto-assets constitute a developing, fast-growing, but still relatively new, asset class. As a result, there are no specific statements from accounting bodies that deal with the accounting of such assets. Also, there is currently no specific accounting guidance in Estonia in relation to transactions undertaken in a digital currency.

With the current lack of clear guidance, there is likely to be a large amount of diversity in practice as to what alternative accounting treatments may be acceptable for crypto assets and in particular cryptocurrencies. Dealing with crypto-assets requires a detailed understanding of the technical complexities of blockchain technology on one hand, and relevant accounting concepts on the other.

At Incorporate in Estonia we have specialists who are familiar with ensuring the correct accounting treatment is applied. Therefore, whilst it is currently unclear as to how this area will ultimately develop we consider we are well placed to advise on numerous aspects.

Accounting requirements in Estonia

The Accounting Act regulates main accounting functions in all business entities registered in Estonia. The essence of the law is framed in compliance with International Accounting Standards (IAS). Almost all Estonian companies can choose whether to prepare their consolidated and annual accounts in accordance with:

  • International Financial Reporting Standards (IFRS) or
  • the Estonian accounting standards ("Estonian GAAP").

The length of a financial year is generally 12 months.  At the end of each financial year, an accounting entity is required to prepare an annual report that consists of the annual accounts and the management report. The auditor's report and, in the case of a company, the profit distribution proposal for the financial year should be annexed to the annual report. The auditor's report need not be annexed to the annual report if auditing is not compulsory. The annual report should be filed (electronically) to the Commercial Register during six months after the end of the financial year.

Is your company subject to audit or review?

An audit or a review of the annual accounts is compulsory for other entities (incl. for private limited companies) in whose annual accounts at least two of the indicators of the financial year exceed the following conditions:

At least two of the indicators of the financial year exceed the following conditions

Audit

Review

sales revenue or income

4,000,000 EUR

1,600,000 EUR

total assets as of the balance sheet date

2,000,000 EUR

800,000 EUR

the average number of employees

50 people

24 people

 

An audit or a review is obligatory also if at least one of the following indicators of the financial year exceeds the following conditions:

At least one of the indicators of the financial year exceed the following conditions

Audit

Review

sales revenue or income

12,000,000 EUR

4,800,000 EUR

total assets as of the balance sheet date

 6,000,000 EUR

2,400,000 EUR

the average number of employees

180 people

72 people


Please note that the above-mentioned criteria apply to Estonian private limited companies (“Osaühing” or “OÜ” in Estonian). All Estonian public limited companies (“Aktsiaselts” or “AS” in Estonian) are subject to an audit.

High-quality accounting services with the best prices

In Estonia, you will get high-quality accounting services with the best prices on the European market. With professional accounting services you have time to focus on your company, while we take care of accounting and tax compliance for you.

Please do not hesitate to contact us for more information.