Creating an Annual Report

23.03.2017

Spring has finally arrived. Warm weather and melting ground is the signal for many businesses to start preparing their annual fiscal year report. In Estonia the report is mandatory for all companies, even if there have been no economic activity during the reporting period.

Creating the report can be a somewhat arduous activity so we recommend you start compiling all the necessary data as soon as possible. If you miss your final deadline then you might get fined and then after that even deleted.

Which companies have to create an annual report

Every company that is registered in the business register has an obligation to create an annual report. You have to produce a report even if your company has had no turnover in the previous year. The report has to be submitted no later than six months after the end of your company’s financial year. For example, if your company’s financial year ends on the 31st of December, then you will have to submit the report no later than the 30th of June.

If your company’s headquarter is abroad and you only have a branch in Estonia, then you must submit the annual report to the County Court Registry Department within one month after the approval of the annual report or seven months after the end of the financial year.

The annual report can be handed in electronically. If you would like to submit the report on paper, you can do so through a notary.

Ordering the service from Aaberg

Creating the annual report can be a time-consuming experience. If you don’t have the time to deal with it then at Aaberg Business Center we can help you create the report. Please let us know about your wishes as soon as possible, so that we can best devote to your company’s peculiarities.

We will need the following materials in order to prepare the report:

Documents (contracts, loans, etc.);
Bank statement of the entire reporting period;
Purchase and sales invoices;
Cheques and expense documents.

To subscribe to the service, contact us either by phone +372 646 2211 or by filling in the contact form in the page footer.

Changes in annual report making in 2016

The biggest change in the report making this year is related to the size of your company. According to law, the bigger the size of your company, the more information you have to present in the report. For micro and small businesses this is of course welcome news as they do not need to present as much information as in previous years.

Companies can be divided into four size categories as follows:

Micro sized companies
A limited liability company, whose parameters during the creation of the report correspond to all of the following conditions:
- Up to 175 000€ in total assets;
- Liabilities are not higher than the shareholders’ equity;
- One shareholder, who is also a member of the board;
- The sales revenue in the reporting year is up to 50 000€
Small sized companies
A company registered in Estonia, which is not a micro-enterprise. During the report period only one of the following characteristics can exceed the following conditions:
- Total assets up to 4 million euros;
- Net sales up to 8 000 000€;
- The average number of employees during the financial year not exceeding 50 people;
Medium-sized companies
A company registered in Estonia, which is not a microenterprise or small business. During the report period only one of the following characteristics can exceed the following conditions:
- Total assets up to 20 million euros;
- Net sales up to 40 million euros;
- The average number of employees during the financial year not exceeding 250 people.
Large sized Companies
A company registered in Estonia, whose figures during the report period exceed at least two of the following conditions:
- Total assets of 20 million euros or over;
- Net sales of 40 million euros;
- The average number of employees during the financial year is 250 people or over.

Since this year the microentrepreneurs do not have to submit an activity report any more. It is sufficient if only the balance sheet and profit and loss statement and additional documents. For medium and large enterprises the reporting remains largely unchanged.

Here is also a list of smaller changes, which will also pay attention to:

There is increasing inspections to verify that the net assets comply with the report;
The compulsory audit thresholds ;
You have to verify the company’s email address before submitted the report to the commercial register;
When signing the report you have to also bring out the ending date of the report. The ending date will be the date on which the executive management has approved the annual report;
As of 01.01.2015, when handing in the annual report the company has to also affirm the correctness of its existing licenses and the annual report notice.