Steps to Close Your Estonian Company

Understanding the Process

Closing a company in Estonia involves several steps that need to be carefully followed to ensure compliance with local regulations. Whether you're closing due to business restructuring or simply reaching the end of your business journey, understanding the procedure is crucial. This guide will walk you through each step necessary to successfully close your Estonian company.

Step 1: Make the Decision

The first step in closing your Estonian company is to make an official decision. This usually involves a resolution by the shareholders or owners of the company. The decision should be documented in writing and include the reasons for closure. It is important to ensure that all parties involved agree with this decision, as it will require legal compliance and financial settlements.

Step 2: Notify the Commercial Register

Once a decision has been made, it is essential to notify the Estonian Commercial Register. This involves submitting an application for deletion from the register. The application must include specific details about the company, such as its name and registration code, along with a resolution of liquidation. It is important to note that this step initiates the formal dissolution process.

Addressing Financial Obligations

Before your company can be officially closed, you must address all financial obligations. This includes settling any outstanding debts, fulfilling tax obligations, and ensuring all employee wages are paid. The company must also close any open contracts or agreements with third parties. Failure to settle these obligations can lead to legal complications.

Step 3: Prepare Financial Statements

As part of the closure process, you will need to prepare final financial statements. These statements should reflect the company's financial position at the time of closure. They are crucial for providing transparency and ensuring that all financial matters are in order before the company is dissolved.

Step 4: Liquidate Assets

The next step is to liquidate any remaining assets of the company. This involves selling off company property, inventory, or other assets and using the proceeds to pay off any remaining debts. The liquidation process should be conducted in accordance with Estonian laws and regulations, ensuring fairness and transparency.

Completing the Closure

With financial obligations settled and assets liquidated, you can proceed with the final steps of closing your company. This involves formally deregistering the company and ensuring all legal documentation is complete. Keep records of all closure activities for future reference, as they may be required for legal or tax purposes.

Step 5: Finalize Deregistration

The last step in closing your Estonian company is to finalize deregistration with the Commercial Register. Once all necessary documents have been submitted and reviewed, the register will officially remove your company from its records. Upon completion, your company will no longer exist as a legal entity in Estonia.

Closing a company can be a complex process, but by following these steps, you can ensure that it is done legally and efficiently. Always consider consulting with a legal professional to guide you through any specific requirements related to your business.