To open a company in Estonia, you will need to comply with certain legal requirements. Here are some of the most important ones:Company Name
Your company name must be unique and not already registered in Estonia. It must also comply with Estonian naming rules, which require that the name is in Estonian, has a legal form (such as OÜ), and does not contain offensive or misleading words.Management Board
Every Estonian company must have a management board, which is responsible for managing the company's activities. The board must have at least one member, who can be a resident or non-resident of Estonia.Accounting Requirements in Estonia
According to the Accounting Act, an accounting entity must prepare an annual report for the fiscal year at the end of each financial year (January, 1 – December, 31).
If your company was incorporated after June, 30th, the report for the first 6 months will be included in the next year’s report.
The annual report should be filed at the Commercial Register within six months after the end of the financial year and consists of:
- Balance sheet
- Income statement
- Management report
Please notice that all companies must submit the annual report, even if there was no activity during the financial year.
The accounting process is a bit different for VAT-liable companies. The taxable period is one month, and VAT returns must be submitted to the tax authority (even for the months when there could be nothing to declare) by the 20th day of the month following the taxable period.