Many business owners focus on their daily work, and the annual report often gets pushed to the last minute. Sometimes there is simply not enough time, and sometimes entrepreneurs wrongly believe that a company with no business activity does not need to submit an annual report. In reality, failing to submit an annual report can lead to fines, removal of the company from the Commercial Register, and other unwanted consequences.

When do you need to submit an annual report?

All Estonian companies must submit an annual report within six months after the end of their financial year. If the financial year follows the calendar year (01.01–31.12), the deadline is usually June 30.

It is important to know that an annual report must also be submitted if the company had no business activity during the financial year.

What happens if you miss the deadline?

Missing the deadline does not usually result in an immediate fine or removal from the Commercial Register. In most cases, the Commercial Register first sends a reminder and gives the company time to submit the report.

However, it is not a good idea to delay it. Besides possible fines, it can also affect your company’s reputation. Annual reports are public, and business partners, customers, banks, and other interested parties can easily check whether a company has submitted its report. A missing report may raise concerns about the company’s reliability and financial management.

Fines for not submitting an annual report

The Commercial Register has the right to issue a fine if a company fails to submit its annual report. A fine may even be issued without a prior warning.

The fine can range from €200 to €3,200 and may be imposed on:

• the company;
• a member of the management board;
• in some cases, other responsible persons.

Many entrepreneurs do not realise that this is not a one-time penalty. Fines can be issued repeatedly until the report is submitted. The amount of the fine depends on factors such as how long the deadline has been missed and whether the violation has happened before.

Can a company be removed from the Commercial Register?

Yes, it can.

If a company still does not submit its annual report after the deadline set by the registrar, the company may be removed from the Commercial Register. According to the law, this process can start when at least three months have passed since the legal reporting deadline.

For example, more than 26,000 companies in Estonia were removed from the Commercial Register in 2024 because they failed to submit their annual reports. This shows that the risk is real and not just a theoretical possibility.

It is also important to know that being removed from the Commercial Register does not cancel existing obligations. Any fines or other liabilities that were imposed before the company was removed must still be paid. Ignoring the problem will usually make the situation more difficult.

Need help preparing your annual report? SimplBooks’ accounting partners can help you prepare and submit your annual report correctly and on time.