Financial statements can now be filed with an optional date

Financial statements must be prepared on the form set out in the laws, and their preparation is compulsory for all entrepreneurs active in Estonia.

Duration of a company’s financial year

The financial year is usually deemed to be 12 months long and is normally set as lasting from 1 January to 31 December. The articles of association of a company may set out a different financial year. A financial year must not be longer than 18 months, but upon changing the start date of the financial year, founding a company or ending it, the financial year may be longer or shorter than 12 months.

Financial statements are prepared through the following stages:

  1. preparing the annual accounts;
  2. preparing the activity management report;
  3. auditing (if required);
  4. preparing a profit distribution proposal and adopting a decision to distribute the profit or to cover the loss;
  5. presenting the financial statements for approval.

When are financial statements submitted?

Financial statements are submitted within 6 months after the end of the financial year. They are submitted to the Commercial Register, and the Company Registration Portal can be used for presenting them in electronic form.

While before, financial statements became public immediately after their submission to the Commercial Register, now companies can choose the date of submission of their financial statements. The relevant suggestion came from the Chamber of Commerce and Industry and the gist of the amendment is that when uploading the financial statements, you can now choose the date when the statements become publicly visible in the Register. If a date after the submission date was chosen, the financial statements will not be visible before that date to Statistics Estonia either, so Statistics Estonia cannot use the data presented in those financial statements until then.