The annual financial report provides an overview of a company's financial position and performance. The accounting annual report must reflect relevant and accurately presented information about the financial position and performance of the reporting entity. The annual report consists of main reports, which are the balance sheet and profit and loss statement, and appendices.
The company's financial year is 12 months long. Typically, the financial year coincides with the calendar year (from January 1st to December 31st), but the company's articles of association or other regulatory documents governing its activities may specify a different financial year.
Upon establishment, termination, or change of the financial year start date, the financial year may exceptionally be shorter or longer than 12 months, but not exceeding 18 months. For example, if the company was established on August 15, 2024, and the financial year is chosen as the calendar year, then the first financial year report period could be from August 15, 2024, to December 31, 2025. In case the company was established on May 15, 2024, then the first financial year report period would be from May 15, 2024, to December 31, 2024.
The balance sheet date is the end date of the financial year report period, which summarizes the entire reporting year. If the company's financial year report period is the calendar year (01.01-31.12), then the balance sheet date is December 31st. As of this date, the financial position and performance of the company are reflected in the annual financial report.
Who are required to submit the annual financial report?
The submission of the annual financial report is mandatory for all companies registered in Estonia, even if the company has not engaged in any business activities during the financial year.
When is the deadline for submitting the annual financial report?
The deadline for the report is 6 months after the end of the company's financial year. For example, if the company's financial year ends on December 31st, the deadline for submitting the report is June 30th.
What happens if the annual financial report is not submitted on time?
If the annual financial report is not submitted on time or not submitted at all, the registrar has the right to fine the company that has failed to submit the report without prior warning. If the annual financial report is not submitted six months after the statutory deadline for submission has passed, the registrar initiates a supervisory procedure against the legal entity under the Commercial Code § 60, the Non-profit Associations Act § 361, or the Commercial Associations Act § 341, which may result in the removal from the register or forced dissolution of the legal entity.
What happens if I haven't filed my annual report for last year?
No problem! With the help of myann., you can quickly and easily complete all missing reports. You can start with the earliest and then move on to the next ones.