Blog: annual reporting
According to § 4 of Act of Accounting, every legal entity that has book-keeping liability in Estonia, must submit its Annual Report once a year. The deadline for submitting Annual Report to the Commercial Registry is 6 months from the end of the financial year. So the companies whose financial year ends on December 31st, should file their report not later than on June 30th.
Even if half a year is a long time, it is reasonable not to leave the procedure to the last minute. At the end of June the information systems as well as book-keepers may be overloaded and hastily compiled reports will suffer from low quality.
The deadlines and contents of Annual Report should be taken seriously. The penalty for not submitting Annual Report in time or submitting false data ranges from € 320 to € 3 200 and the penalty can be applied without warning either to the company as a legal entity, or its Board Members. The fee for a small company for ordering Annual Report from a professional book-keeping company as a service is generally less expensive than paying penalties.
There are several options how a book-keeping company can help you with the Annual Report.
Compiling Annual Report as one-stop service. This option is suitable if the nature of your business does not require daily accounting and there are no taxes to declare monthly. The whole year’s book-keeping is done once a year altogether with Annual Report. Sometimes holding companies, owners of property or investment portfolio, or companies with temporarily suspended activities use this option, because it allows to keep costs low.
Compiling Annual Report for an active trading company is usually integral part of the accounting service and included in the service agreement.
In special cases you are also very welcome to contact a book-keeping company. For example reporting during bankruptcy or turnaround process, reporting under special requirements of parent company or exotic accounting standard or for example for, quickfix of the problem when reports have not been submitted in time.
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