Liquidation of a company in Estonia

An analysis of client inquiries conducted by our specialists shows that companies in Estonia are typically closed in the following situations:

accumulated debts;
insufficient or missing accounting documentation;
conflicts between the company’s owners;
inability to settle tax or loan liabilities;
legal claims and disputes from partners and/or employees;
unwillingness to continue operating an unprofitable business.

Many business owners in Estonia are not willing to spend the time and money required to close a company in compliance with local legal requirements. However, as practice shows, owners who simply abandon a non-profitable company in the Baltics often underestimate the negative consequences of such a careless decision.

Watch the video with the expert (2:39 min)

If the liquidation of a company in Estonia was carried out without following the official closure procedure, you risk:

The company being forcibly removed from the relevant state Register.
This is not related to the established process of company liquidation in Estonia.

This also leads to:

Loss of legal validity of any documentation (including contracts) signed on behalf of the company.
Closure of the company’s bank account.

How to Legally Close a Company Quickly

The process is mandatory and regulated by the country’s legislation. Typically, the entire company liquidation process takes from 8 to 10 months.

It is important to understand!

In situations where the entrepreneur initiating the liquidation process is unable to meet all creditor demands, the authorized liquidator or a board member of the company is required to file a bankruptcy petition with the court. Failure to comply with this requirement may result in civil and/or criminal liability!

The notarized declaration of company liquidation can be submitted either in person by a board member before a notary or through a proxy representative in Estonia. Document templates are provided.

Cost of the company liquidation process — 800 EUR
Liquidator’s services — 200 EUR.

The final cost of the profit distribution plan and balance sheet is determined individually in each case based on the scope but cannot be less than 150 EUR.

If the liquidation of a company in Estonia was carried out without following the official closure procedure, you risk:

The company being forcibly removed from the relevant state Register.
This is not related to the established process of company liquidation in Estonia.

This also leads to:

Loss of legal validity of any documentation (including contracts) signed on behalf of the company.
Closure of the company’s bank account.

An alternative to closing a company in Estonia may be a transaction involving the sale or donation of the enterprise, with a change of founder and/or director. The re-registration process takes up to 5–7 days. In this case, the obligations and responsibilities of the company are transferred from the former management or owner to the new owner. Our specialists will provide full support throughout such transactions.

Not sure how to choose the best procedure to close your company without losing money?

Don’t know what to do about debts to the tax authorities or business creditors?

SOWANA will help you close your company and resolve any issues absolutely “painlessly” for the business owner!

The cost of company liquidation starts from 800 EUR.

According to the Estonian Commercial Code, to properly liquidate a company, the procedure must include:

submission of a resolution and statements from the company’s main shareholders deciding to liquidate the company;
appointment of responsible persons—“liquidators”—who must be Estonian residents;
publication of the company’s liquidation in Estonian media;
creditor claims review;
preparation of the balance sheet and a plan for income distribution;
removal of the company from the state Register based on a court decision.

SOWANA specialists are ready to promptly answer any remaining questions and provide the necessary consultation in a personal meeting.

Call us on messenger: +372 552 00 78

Or write to us by email: info@sowana.ee

We look forward to working with you at Sowana!

You deserve accurate information and attentive specialists.

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