Some of our clients have asked if they could submit their annual accounts themselves if their companies have been dormant and no sales revenue was generated the previous financial year.
Technically it is possible for e-residents online via Estonian Business Register in English. Unicount generally does not recommend it if you are not familiar with Estonian GAAP (Generally Accepted Accounting Principles) and want to record any items such as expenses, assets or liabilities even if your company generated no sales. Estonian Generally Accepted Accounting Principles are defined by Estonian Accounting Act and guidelines issued by the Accounting Board of Estonia.
If you still feel like doing it be warned that the process is not an easy one and the user experience has never been designed to please someone who is not an Estonian and already a qualified accountant. So please be patient when doing it on your own in English. You will also see a lot of translations missing in the Business Register online service.
Our recommended accounting partner is Grow Finance accounting firm. You can contact them to enquire about their accounting services here. Or you can go to the e-Residency programme’s marketplace and browse other accounting providers here.
This does not serve as professional advice and Unicount does not take any liability for the data you submit to the authorities.
Unicount does not advise you in case of any questions as we are not qualified accountants.
The screenshots and instructions only apply for micro-company annual accounts (mikroettevõtja) and therefore cannot be used for any other type of business not qualifying as a single physical person shareholder micro company. If you cannot choose selection of standard "Mikroettevõtja" then probably you are not one according to the Business Register information.
Annual accounts are called "annual report" in Estonia and there is no dormant accounts regulation. By following these instructions you would be submitting micro-company annual accounts with no recorded economic activity.
Please note that submitting false data is an offence in Estonia.
Here is an in-detail guide to submit annual accounts for Estonian limited company (OÜ) qualifying as a micro company, with zero revenue, no paid employees, no expenses and no registered share capital.
Log in to the Estonian Business Register using your e-resident digital ID card. Smart-ID does not work for signing your annual accounts.
2. Click on the "Annual reports" tab and then under the tab "Reports to be submitted" click on the button "Add new report".
3. Select the company you would like to file for from the dropdown menu.
4. In the next selection open the "Type of report" menu and select "Annual report".
5. If you are filing for a period that does not match with your financial year (all companies registered via Unicount have a financial year 1 January - 31 December) enter the date your company was registered. You do not have to file annual accounts for a period equal to or less than 6 months. So if your company was registered on or after 1 July you can present annual accounts for a period longer than your financial year. You would still need to insert your company registration date manually though. Here we entered 07.06.2019.
6. The next selection enables you to generate a copy of annual accounts in English. This is helpful to see what you actually made. Select yes and click "Add new report".
7. Now you have reached a view called "General view of the report". Make sure that your email address is working before trying to submit accounts. The next step is filling in mandatory reporting forms. Click on the button "Filling in reporting forms".
8. Mandatory reports are statement of financial position (a balance sheet in English) and Income statement (profit & loss statement in English). We would not explain the differences in Schemes but make sure to select the same options as shown. Then click Save.
9. Now you can insert the data for the balance sheet and P&L forms. Click on enter to insert the data.
10. Your balance sheet opens up like this, no pre-filled data here.
Under assets, you do not need to insert anything as your share capital has not been registered yet and the company has no assets.
Under liabilities, you do not need to insert anything as you have no liabilities toward suppliers and creditors.
Under equity insert 0 euros as your total equity on the balance start and end date as you have not paid in your share capital yet.
Insert 2500 euros as your issued share capital and also -2500 euros as unpaid capital on the balance start and end date.
Now click "Save and calculate totals". Blue shade fields are now calculated. When all is done correctly you can click "Back to the view of reporting forms".
11. Now let's do the P&L statement. Under the assumption of zero revenue, you just write zero to the revenue field. Then click "Save and calculate totals". When done click "Back to the view of reporting forms".
Please note that if you have paid for company registration and virtual office from your own pocket and would like to be reimbursed by the company your balance sheet and P&L sheet should reflect that. This in turn would make your equity negative if no sales were recorded, so we do not recommend doing it unless you have some sales to balance the equity with.
When done check if you made any errors by clicking on the "Check correspondence to the rules".
You would see this error message now, but as you have not paid in and registered share capital you can ignore the warning.
12. There are three mandatory notes (detailed reports) that need to be submitted even when doing micro company (dormant) accounts. Accounting policies, labour expenses and related party transactions. Click on Enter to access the forms.
13. Accounting policies are made simple, you just need to select that the company is still active and no more data is requested. There is a dropdown menu for that which for some reason is mistranslated in English (going concern while in Estonian it is "ettevõtte on jätkuvalt tegutsev"). Choose yes and then click save and "Back to the view of reporting forms". Please note that this is not related to the fact if the company was trading or not.
14. Labour expenses can be saved with correct zeros inserted under the assumption that no persons were employed. Click save and "Back to the view of reporting forms". You would not see an error like here if the zeros are located correctly.
15. Now comes the last note, related parties. Here you need to insert 2500 euros of receivables that you/shareholders owe the company as the share capital has not been paid yet. When done click "Save and display general view".
16. Now you are back to the main view with all the mandatory report forms filled. When clicking "Continue to the next step" you would be prompted to insert a tick about the company operating and no sales revenue created or company not operating at all.
17. Here we choose "No economic activity was performed" and click Save and "Back to the main view of the report".
18. Now we can click on the button "Continue to the next step" again and the review opens up. To proceed click "Generate the final PDF in Estonian and English". You can also tick the box for giving access to Statistics Office of Estonia (this part is not translated yet). Then click "Send the report to signing".
19. Before signing enter the date today and click Save. Then click "Add a digital signature to the report". After this, you can click "Continue to the next step".
20. Now you can download the signed report files in Estonian and English for your archive and submit the report to the register. When the submission is successfully received you should get an email notification from the Business Register.