New Post
Annual report in Estonia
What is an Annual Report in Estonia?
All legal entities and businesses registered and operating in Estonia are required to prepare and submit an annual financial report. This report is filed with the Estonian Business Register, and the information becomes publicly accessible—anyone can view the financial statements of any Estonian company.
The primary goal of this financial reporting requirement to the Estonian Business Register is to provide accurate and trustworthy information regarding a company's financial condition and business outcomes to government authorities and other relevant parties.
When is the Financial Disclosure Due?
Typically, the deadline for submitting the annual report is June 30th of the following year. Missing this deadline can result in penalties, including fines and, in severe cases, the potential removal of the company from the register. For more details on submission deadlines, refer to our article on annual report submission timelines in Estonia.
If the report is not submitted, the Business Register may initiate the removal of the company, which could lead to permanent deregistration. To understand the consequences of not meeting the deadline, see our article on company deregistration for non-compliance.
What Does the Estonian Annual Financial Report Include?
The annual report must comply with Estonian accounting standards and international guidelines, offering a comprehensive and accurate financial overview of the company.
It is essential that the financial report reflects the actual financial situation, business results, and any changes in the company’s financial stability during the reporting period, ensuring transparency and the reliability of the data provided to stakeholders, investors, and regulatory authorities.
The components of the company’s year-end report in Estonia must include the following:
Balance Sheet
This provides details of the company’s financial position, including assets, liabilities, and equity as of the last day of the financial year (usually December 31st).
Income Statement
This outlines the company’s revenues and expenses during the reporting period, presenting key financial indicators such as total income, expenses, and net profit or loss.
Cash Flow Statement
This illustrates the company’s cash inflows and outflows during the period, categorizing them into operating activities, investing activities, and financing activities.
Statement of Changes in Equity
This statement highlights the changes in the company’s