The annual report is a document that Estonian companies must write and submit to the authorities after the fiscal year has passed (usually within the following six months). It contains all the transactions, movements, and operations of the company.

Additionally, the annual report allows you to distribute the profits from the previous fiscal year (if applicable) as dividends. Until the annual report is submitted, your company cannot distribute dividends.

Why My Company Must File an Annual Report

Submitting the annual report is a legal obligation for most Estonian companies, unless the company was registered after July 1st of the previous fiscal year. The annual report is required under the Estonian Commercial Code and serves several essential functions:

• It ensures legal compliance and keeps your company in good standing with the authorities.
• It provides transparency to shareholders, partners, investors, banks, and public institutions.
• It is required if you want to distribute profits in the form of dividends.
• It creates a public financial record of your company’s activity and financial health.

Failing to submit the annual report on time can result in fines imposed on both the company and its board members. If the report continues to be missing after reminders from the authorities, the company may ultimately be removed from the e-Business Register.

Deadlines You Should Know

• The annual report submission period starts on January 1.
• To benefit from the early annual report fee, payment must be completed by March 31.
• All required documents and clarifications must be provided by May 31, so our accountants have sufficient time to prepare the report.

How Does Companio Help?

At Companio, we guide you through the entire annual report process so you can focus on your business with peace of mind. Our team:

• Reviews the requisites and documents needed to prepare your annual report.
• Prepares and submits the report to the Estonian authorities.
• Assists with profit distribution or resolving equity situations after submission.

The process is structured into 5 clear steps, designed to be as simple and transparent as possible. You can learn more about each step in our dedicated guide.

Important: Power of Attorney (PoA)

Before we can prepare and submit your annual report, it is mandatory that you grant Companio a Power of Attorney (PoA). This allows us to act on your behalf before the Estonian authorities.

You’ll find a step-by-step tutorial on how to grant this permission in this FAQ.

What If My Company Has Profits or Losses?

If your company generated profits, the annual report must be submitted before any dividends can be distributed.

If your company ended the year with losses, this does not automatically mean there is a problem. Depending on your situation, different solutions may apply (such as recognizing intangible assets, shareholder loans, or increasing share capital). These scenarios are explained in detail in our dedicated FAQ.

Updated on: 22/12/2025