Yes, submitting an annual report is required for all companies registered in Estonia, even if there was no business activity during the financial year (dormant companies). This is a legal obligation under Estonian law.

If the annual report is not submitted, the Business Register (Äriregister) may impose fines without prior warning. These fines can be applied repeatedly until the annual report is submitted.
In addition, continued non-compliance may lead to the company being deleted from the register.

The need for an audit or review of an Estonian annual report depends on your company’s size and financial indicators.

An audit is mandatory when at least two of the following conditions are exceeded:

• Sales revenue or income: €4,000,000
• Total assets as at balance sheet date: €2,000,000
• Average number of employees: 60 employees

A review is mandatory when at least two of the following conditions are exceeded:

• Sales revenue or income: €1,600,000
• Total assets as at balance sheet date: €800,000
• Average number of employees: 24 employees

An audit is also mandatory for a VAT payer when at least one of the following conditions is exceeded:

• Sales revenue or income: €12,000,000
• Total assets as at balance sheet date: €6,000,000
• Average number of employees: 180 employees

A review is also mandatory for a VAT payer when at least one of the following conditions is exceeded:

• Sales revenue or income: €4,800,000
• Total assets as at balance sheet date: €2,400,000
• Average number of employees: 75 employees

The annual report must be submitted within six months after the end of the financial year. For companies with a calendar financial year, the deadline is typically 30 June. Missing the deadline increases the risk of penalties and enforcement actions.

Yes. Dormant companies are still required to submit an annual report, even if there were no transactions, no employees, and no income during the year.

No. Companies owned by e-residents follow the same annual reporting requirements as all other Estonian companies. Ownership status does not affect reporting obligations.

An annual report includes financial statements such as the balance sheet and income statement, management information, and statutory disclosures required under Estonian GAAP or IFRS-aligned standards.

Yes. Annual reports can be prepared and submitted fully online. Most international founders manage the entire process remotely with the support of an accounting service provider.

The annual report must be submitted in Estonian. Supporting accounting records may be kept in Estonian or English, but the final report filed with the Business Register must be in Estonian.

Yes. 1Office prepares, reviews, and submits Estonian annual reports for both active and dormant companies, ensuring compliance with local requirements and deadlines.

Incorrect or incomplete annual reports may lead to rejection by the Business Register, follow-up requests, fines, or increased scrutiny by authorities. Accurate preparation is essential to avoid compliance issues.

The cost depends on the company’s activity level, transaction volume, VAT status, and whether an audit or review is required. Pricing is typically fixed or quoted in advance based on the company’s situation.

1Office combines local Estonian accounting expertise with international experience. We ensure your annual report is accurate, compliant, and submitted on time, reducing administrative risk for foreign founders and e-residents.