Question 1

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 2

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 3

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 4

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 5

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 6

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 7

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 8

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 9

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 10

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 11

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 12

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 13

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 14

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 15

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 16

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 17

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 18

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 19

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 20

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 21

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 22

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 23

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 24

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 25

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 26

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 27

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 28

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 29

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 30

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 31

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 32

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 33

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 34

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 35

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.

Accounting (1)

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

1. When is equity “too low”?

2. Practical ways to restore equity

3. Exit scenarios

4. When will the share capital be returned?

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Basic accounting

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FAQ

Accounting (1)

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

1. When is equity “too low”?

2. Practical ways to restore equity

3. Exit scenarios

4. When will the share capital be returned?

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Authorising the accountant

Granting rights to an accountant in the e-Tax Board

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