Q: What is an apostille?

Apostille proves the authenticity. An apostille is an internationally recognised certificate—attached to a public document—that confirms the authenticity of the signer, seal, and capacity in which the document was issued. It allows the document to be accepted in any other state that has joined the 1961 Hague Apostille Convention (you can check the current list of member countries on the convention’s website). In Estonia, only public notaries may issue a public document. Because the same notary cannot both notarise a document and apostille it, the process normally involves two separate notaries : Notary A notarises or authenticates the original document. Notary B adds the apostille that certifies Notary A’s authority and signature. After notarisation and apostilling, the document is usually translated by a sworn translator into the language required by the receiving country. Courier or postal delivery costs are extra and depend on the shipping method you select.

Question 1

Who is responsible for accurate accounting data?

John Doe · Accepted Answer

The management board is always responsible for providing complete and correct source documents; the accountant is responsible for processing those documents in accordance with Estonian GAAP and tax law.

Can we catch up on previous periods?

Yes. We routinely perform “catch‑up accounting” (tagantjärele raamatupidamine) for businesses that have fallen behind on bookkeeping or need to reconstruct ledgers before an audit, sale, or liquidation. Typical scope

Document collection & gap list – we map missing invoices, expense receipts, bank statements.
Data entry & reconciliation – post all transactions, reconcile banks, payables, receivables, inventory.
Tax corrections – prepare or amend VAT, payroll and TSD returns if needed.
Financial statements – produce compliant balance sheet & income statement for each outstanding year.

How to start?

Contact us with a brief description of the backlog (years & estimated transactions).
We send a document checklist and NDA.
Once we receive your materials we issue a detailed quote.

Need assistance? Contact us for a fixed‑fee quote.

This information is general in nature and does not constitute legal advice.

Question 2

What ID cards can be used?

John Doe · Accepted Answer

Identification methods.

The following forms of electronic identification are accepted for digital signing and access to Estonian e-services:

Estonian ID card
Estonian e-Residency card
Estonian Smart-ID
Estonian Mobile-ID

For the most up-to-date list and technical requirements, visit www.id.ee.
Please note that accepted identification methods may change over time, so it's important to stay informed of any updates.

Additional info: https://www.youtube.com/watch?v=qPIxhFZcP_Y&t=18s

Question 3

What data must an invoice contain?

John Doe · Accepted Answer

An invoice is a primary accounting document.

The document must clearly identify the parties, the date, and the economic substance of the transaction, otherwis,e it is not accepted as a valid source document. E-invoices are fully acceptable as long as integrity and authenticity are guaranteed. Adding extras such as the payment reference or due-date is not compulsory, but it helps cash-flow management. Only a VAT-registered business may add VAT to its invoice.

Document title (e.g. “Invoice”)
Unique invoice number and date of issue
Seller’s and buyer’s name, address, registry code, VAT ID (if any)
Description of goods/services, quantity, unit price, VAT rate, net and gross amount
Date of delivery/performance if different from the invoice date

2. Language of source documents

Invoices may be issued in Estonian or English.
Documents in any other language must be accompanied by a sworn translation into Estonian or English to be accepted by auditors or the Tax and Customs Board (MTA).

3. Proving the business purpose

Under both the Accounting Act and the Income Tax Act, an expense is deductible only if it is business‑related and substantiated.
If the invoice alone does not make the business purpose evident (e.g. taxi, parking, travel tickets), add explanatory information such as:

project or client name;
employee name & business trip dates;
licence plate number of the company car, etc.

Lacking or incomplete documentation may lead to the expense being treated as a non‑business cost, subject to fringe‑benefit or dividend tax.

This guide is for general information only and does not constitute legal advice. For complex situations consult a professional accountant or tax adviser.

Question 4

Do I have to submit an annual report?

John Doe · Accepted Answer

All Estonian companies must file an annual report, even for inactive years.

Failure to submit the report on time allows the court that maintains the Commercial Register to impose monetary fines on both the company and each person responsible for filing, and it may repeat the fine until the report is lodged. The amount is set under the Code of Civil Procedure and can escalate with every reminder. Late filing also blocks the distribution of dividends, delays banking and licensing procedures, and damages the company’s public record. If the report is still outstanding 18 months after the financial year-end, the court may strike the entity from the register or start dissolution or liquidation proceedings, which can freeze assets and terminate contracts. Reports can be filed entirely online when at least one board member signs with an Estonian ID-card, Mobile-ID, Smart-ID, or e-Residency card.

Question 5

Annual report deadlines in Estonia

John Doe · Accepted Answer

Submission of the annual report is mandatory in any case.

Every Estonian legal entity – including micro‑sized OÜs owned by e‑residents – must file an annual report (majandusaasta aruanne) with the Business Register within 6 months after the end of its financial year (Commercial Code § 60).

Typical deadline: If your financial year = calendar year, the report is due 30 June of the following year. To change the FY you must submit a shareholders’ resolution and amend the articles in the Business Register before the new FY starts.

1. What must be included?

Estonian GAAP (Estonia’s Good Accounting Practice) recognises four size categories. Reporting requirements scale with size: The size of the company determines which statements are required: micro-entities file only the balance sheet and income statement, whereas small entities add a cash-flow statement and management report, and larger ones include changes in equity and often an audit.

Most of our clients fall under micro or small category.

2. Penalties for late filing

Delay	Sanction
Up to 3 months	Warning letter & initial fine (typically €200–€300)
Over 3 months	Repeated coercive fines up to €3 200 total
Persistent non‑compliance	Court‑ordered compulsory dissolution of the company

Late filing also raises red flags with banks and partners; keep your compliance record clean.

3. Best‑practice timeline (calendar‑year FY)

Month	Task
Jan‑Feb	Close previous FY in accounting; reconcile balances
Mar	Draft financial statements; collect supporting documents
Apr	Management review; prepare notes & management report
May	Board approves package; send to auditor (if required)
Jun	Shareholders’ meeting adopts the report; board member signs; submit by 30 Jun

Submitting early avoids last‑minute e‑system congestion.

Need assistance? Contact us for a fixed‑fee quote.

This overview is for general information only and not legal advice. Always check current laws and the Business Register instructions.

Question 6

Why is there a need for Apostille?

John Doe · Accepted Answer

It lets you use the documents abroad.

You need apostilled documents whenever your Estonian company must prove its legal standing abroad. The apostille lets foreign banks, authorities, and business partners trust that the papers are genuine, enabling you to open non-Estonian bank accounts, sign contracts, or complete transactions in other countries without additional verification.

Question 7

What is an apostille?

John Doe · Accepted Answer

Apostille proves the authenticity.

An apostille is an internationally recognised certificate—attached to a public document—that confirms the authenticity of the signer, seal, and capacity in which the document was issued. It allows the document to be accepted in any other state that has joined the 1961 Hague Apostille Convention (you can check the current list of member countries on the convention’s website).

In Estonia, only public notaries may issue a public document. Because the same notary cannot both notarise a document and apostille it, the process normally involves two separate notaries:

Notary A notarises or authenticates the original document.
Notary B adds the apostille that certifies Notary A’s authority and signature.

After notarisation and apostilling, the document is usually translated by a sworn translator into the language required by the receiving country. Courier or postal delivery costs are extra and depend on the shipping method you select.

Question 8

Requirements for a Power of Attorney?

John Doe · Accepted Answer

Power of attorney (PoA) authorises us to act on your behalf for the transactions you specify.

To be valid in Estonia and recognised abroad, it must meet three basic requirements:

Notarial form – The PoA must be signed before a notary (in Estonia or abroad).
Proper authentication –
- If the PoA is signed in a country that is party to the 1961 Hague Apostille Convention, the notary’s signature must be apostilled.
- If the country is not a member of the Convention, the document must be legalised through that country’s foreign ministry and the Estonian embassy or consulate.
Language – The notary act should be in Estonian or accompanied by a sworn translation into Estonian or English.

Step-by-step process

Draft – We supply a template that details the exact powers you wish to grant.
Notarisation – You sign before a notary; the notary verifies your identity and capacity.
Apostille/legalisation – applied as required by the country of signature.
Translation (if needed) – Performed by a sworn translator.
Delivery – Send the original or a certified copy to us; courier fees depend on the service selected.

Country-specific nuances

Most jurisdictions follow the Hague Apostille rules, but some (e.g., Canada, UAE) still require full consular legalisation.

With a properly notarised and authenticated PoA in place, we can conduct the authorised transactions smoothly and in full compliance with international and Estonian law.

Question 9

What to do with negative share capital (net assets)?

John Doe · Accepted Answer

Negative share capital must be resolved as soon as possible.

Below is a practical roadmap that aligns with the requirements of the Commercial Code (Äriseadustik) and common market solutions.

1. When is equity “too low”?

Under Commercial Code § 176(2), the company’s net assets must be at least:

50 % of registered share capital, and
not less than the minimum share‑capital requirement (currently € 2 500 for OÜs).

Example:
An OÜ with a registered capital of €2 500 must keep equity ≥ €2 500 (100 %).

If the balance sheet shows that equity is below either limit (often expressed as negative share capital), the board must convene a shareholders' meeting within three months after approval of the annual report to decide on remedies.

2. Practical ways to restore equity

Issue new shares/owner cash injection – quickest textbook fix.
Convert shareholder loans into equity (set‑off contribution).
Revalue (upwards) real estate or IP – allowed if a fair‑value report substantiates it.
Cut costs & improve margins – demonstrate turnaround in the next financial year.
Sell non‑core assets – realise gains, book profit.
Reduce share capital to a minimum (€2 500) and cover the rest via profit or later capital increase.

Tip: Make sure any capital manoeuvre is properly documented, entered in the accounting ledgers and registered in e-Business Register.

3. Exit scenarios

Sell the company – shares can be transferred to a buyer who is willing to recapitalise. Ensure the SPA allocates responsibility for past debts.
Liquidate – a clean way to close down if there is no buyer or business rationale. Requires publishing a creditor notice and preparing a final balance sheet.
Turnkey liquidation service – we can handle filings, creditor notices, accounting & tax clearance (fees start around €300–€1 000).

4. When will the share capital be returned?

Only the paid-in share capital may be returned to the owner, and this may occur no earlier than 4 months after the liquidation process begins. The return can include both the registered share capital and any remaining funds in the company’s bank account, provided all legal obligations have been fulfilled.

NB!

In Estonia, for a Private Limited Company (OÜ), the €2,500 minimum share capital requirement was abolished in February 2023, meaning the share capital can be as low as €0.01; however, founders become personally liable for the difference if assets fall short of €2,500 in bankruptcy. For a Public Limited Company (AS), the minimum remains €25,000.

Question 10

What is the e-Notary service in Estonia?

John Doe · Accepted Answer

Digital notarial services in Estonia and selected embassies.

In Estonia, a public notary acts as an official intermediary between private individuals or companies and the Commercial Register, helping to certify applications, transactions, and legal documents. Thanks to Estonia’s advanced digital infrastructure, many notarial services can now be completed remotely using the e-Notary system.

You can access the platform at: https://iseteenindus.notar.ee

What can you do through the e-Notary?

Initiate and complete share transfers
Certify documents, signatures, and copies
Authenticate power of attorney documents
Request apostilles
Book notary appointments and review draft contracts
Access invoices and your full notarial history

e-Notary is available throughout Estonia and in selected Estonian embassies abroad, including:

Helsinki
Stockholm
Brussels
London
Riga

If you prefer, you can visit an Estonian embassy in one of these cities instead of travelling to Estonia for share transactions or other notarised acts. This is especially convenient for e-residents.

Choosing a notary

You can log in to notar.ee with your digital ID to choose a notary and schedule an appointment. Notary fees are state-regulated, and the quality of service is consistent. You may want to choose one who is able to conduct the procedure in English and supports the e-notary scheme.

Additional rights and services

Estonian law (§ 30 and § 33 of the Notaries Act) gives you the right to request that a notary submit documents to the Business Register on your behalf. If the notary certifies the content of the application, their fee also covers:

Legal consultation
Preparation of the draft application
Guidance on applicable state fees

A notary can also help submit address changes to the Population Register and file certain activity licence applications, as listed in Annex 1 of the Notarial Regulations.

Question 11

What ID cards can be used?

John Doe · Accepted Answer

Identification methods.

The following forms of electronic identification are accepted for digital signing and access to Estonian e-services:

Estonian ID card
Estonian e-Residency card
Estonian Smart-ID
Estonian Mobile-ID

For the most up-to-date list and technical requirements, visit www.id.ee.
Please note that accepted identification methods may change over time, so it's important to stay informed of any updates.

Additional info: https://www.youtube.com/watch?v=qPIxhFZcP_Y&t=18s

Question 12

How long does liquidation take?

John Doe · Accepted Answer

It's about half a year.

For a private limited company, the absolute minimum is six months—but only if all statutory steps are completed on time.

The clock starts when the dissolution is entered in the Commercial Register and the liquidation notice is published in the state gazette Ametlikud Teadaanded.
At least four months must elapse after shareholders are notified of the final balance sheet and asset distribution plan.

If all filings, creditor notices, and tax clearances are handled promptly, the process can be wrapped up in roughly half a year; any outstanding requirements will extend the timeline.

However, in certain cases, we can offer a fast solution within a few business days: we purchase the shares and take over management of the company, after which we proceed with the dissolution in accordance with Estonian legal procedures. This option may be suitable for clients who need a faster exit or cannot manage the liquidation process themselves. We will first assess eligibility and confirm the applicable solution.

Question 13

Can I liquidate my company remotely if I am abroad?

John Doe · Accepted Answer

Yes, in most cases, company liquidation can be handled fully remotely.

We prepare the required documents and guide you through the signing process using Estonia’s digital identity tools (e-Residency card, ID card, Smart-ID, or Mobile-ID). If some steps require additional verification, we will advise the most practical legal option for remote completion. You do not need to travel to Estonia in standard cases.

Question 14

Assisting with liquidation if the company has debts or court proceedings?

John Doe · Accepted Answer

Yes, we can assist, but first we must assess whether liquidation is legally possible in your case.

If a company has significant debt, enforcement actions, or court proceedings, voluntary liquidation may not be permitted or may not be the best solution. In such situations, insolvency or restructuring may be required before closure. We provide an initial review and recommend the safest and legally correct pathway.

Question 15

Are company liquidation and bankruptcy the same?

John Doe · Accepted Answer

No — liquidation and bankruptcy are two different legal procedures.

Liquidation is typically used when a company can settle its obligations and close in an orderly manner. Bankruptcy occurs when a company is insolvent and cannot pay its debts, requiring formal insolvency proceedings. Choosing the correct procedure is important to avoid legal liability for management.

Question 16

Is this background check regarded with the e-residency program?

John Doe · Accepted Answer

Short answer — no.

The background check we offer has nothing to do with applying for e-Residency.
Estonia’s Police and Border Guard Board (PBGB) carries out its own screening of every e-Residency applicant and charges the state fee set in the Identity Documents Act and the State Fees Act. Those fees vary by pick-up location (Tallinn: no extra charge; embassies: + €20; partner hubs such as Seoul, Tokyo or San Francisco: local service fee).

What e-Residency is — and isn’t

A government-issued digital ID that lets you sign, authenticate and run an EU company online.
Not a form of citizenship, tax residency, visa, residence permit, or travel document.

Our background-check service is designed for corporate due-diligence on Estonian natural or legal persons; it neither replaces nor influences the PBGB’s screening for e-Residency applications. For official details on e-Residency requirements and fees, see the PBGB website.

Question 17

How the process will be carried on?

John Doe · Accepted Answer

End-to-end background-check service is fast, confidential, and fully compliant

Once your order and payment are confirmed we e-mail you a short intake form asking for the target’s key identifiers—typically a full name, Estonian personal ID-code (isikukood) or company registration number. After we receive this information our compliance team:

Searches official Estonian sources – Commercial Register, Beneficial Ownership Register, Land Register, tax and court databases, sanctions lists and press archives.
Verifies and consolidates the findings – matching records across databases, flagging inconsistencies and potential risks.
Drafts a concise report – summarising ownership, management, legal disputes, insolvency history, licences, sanctions, PEP status and any adverse media.

The finished report is delivered as a secure PDF to your chosen e-mail address—usually within two to three business days—so you can make informed decisions based on reliable, up-to-date data. All searches are confidential and performed in accordance with Estonian data-protection law.

Question 18

Why registar a trademark?

John Doe · Accepted Answer

Exclusive rights in EU.

Registering a trademark gives you exclusive rights to use the brand name or logo in your specific field—whether in Estonia, the EU, or both. No one else can legally use or register the same mark without your permission.

A registered trademark is one of the most effective ways to protect your brand from unfair competition. It helps you prevent others from using your name or copying your identity for commercial gain.

It’s also cheaper and easier to register your trademark than to prove ownership in court later. In fact, several EU countries—including Estonia, Germany, and Spain—already check the EUIPO trademark database before allowing company names to be registered. This means that if your company name is already registered as a trademark, others cannot use it unless you allow it.

Question 19

What ID cards can be used?

John Doe · Accepted Answer

Identification methods.

The following forms of electronic identification are accepted for digital signing and access to Estonian e-services:

Estonian ID card
Estonian e-Residency card
Estonian Smart-ID
Estonian Mobile-ID

For the most up-to-date list and technical requirements, visit www.id.ee.
Please note that accepted identification methods may change over time, so it's important to stay informed of any updates.

Additional info: https://www.youtube.com/watch?v=qPIxhFZcP_Y&t=18s

Question 20

What is the Import One-Stop Shop (IOSS)?

John Doe · Accepted Answer

The Import One-Stop Shop (IOSS) is an EU-wide electronic system.

The IOSS platform enables suppliers and electronic interfaces that sell imported goods to buyers in the EU to collect, declare, and pay VAT to the relevant tax authorities. This eliminates the need for buyers to pay VAT when goods are imported into the EU, which was previously required for goods valued at over EUR 22.

Launched to simplify VAT compliance for businesses involved in distance sales of imported goods to EU consumers.

Through the IOSS, sellers and online marketplaces can collect, declare, and pay VAT for goods imported into the EU—directly to the relevant tax authorities—at the point of sale. This eliminates the prior requirement that buyers pay VAT upon importation.

Benefits for sellers:

Centralised VAT registration for all EU countries.
Simplified VAT reporting and payment.
Improved customer experience by avoiding customs delays and unexpected charges.

Benefits for buyers:

VAT is included upfront in the purchase price.
No hidden fees or customs handling charges at delivery.
Faster and smoother shipping process.

If a seller is not registered with IOSS, the buyer must pay VAT upon delivery and may also incur customs clearance fees charged by the courier or postal service.

The IOSS number is applied for through the Estonian Tax and Customs Board.

Question 21

What ID cards can be used?

John Doe · Accepted Answer

Identification methods.

The following forms of electronic identification are accepted for digital signing and access to Estonian e-services:

Estonian ID card
Estonian e-Residency card
Estonian Smart-ID
Estonian Mobile-ID

For the most up-to-date list and technical requirements, visit www.id.ee.
Please note that accepted identification methods may change over time, so it's important to stay informed of any updates.

Additional info: https://www.youtube.com/watch?v=qPIxhFZcP_Y&t=18s

Question 22

How does the IOSS number affect Estonian companies?

John Doe · Accepted Answer

Simplified operations.

An IOSS number (Import One-Stop Shop) helps Estonian e-commerce businesses simplify VAT reporting when selling low-value goods to EU customers. Instead of managing VAT registrations and declarations across multiple countries, IOSS allows you to report and pay VAT through a single monthly return in a single EU Member State.

This reduces administrative workload, improves customer delivery experience, and helps avoid VAT issues such as double taxation or unexpected import charges. It is especially relevant for online stores shipping goods from outside the EU to EU consumers.