Estonia has long been an attractive destination for entrepreneurs due to its simple and transparent business environment and an easy company registration system. However, there are times when business owners must navigate the challenging process of closing a company, and it’s essential to understand the steps involved. This blog post aims to shed light on the streamlined process of company deletion in Estonia, making it easier for business owners to manage this transition.
The Simplified Process of Company Deletion in Estonia
One of the key advantages Estonia offers to business owners is the introduction of a new act in the commercial register. This act allows for a simplified and accelerated dissolution of a company. According to paragraph 63 in the Business Register Act, a private limited liability company may apply for its removal from the register under certain circumstances. You can read the full details of this act here.
§ 63. Removal on request
A private limited liability company may apply to the Registrar for its deletion from the register if the private limited liability company has not commenced its activities and this is confirmed by all members of the management board and all shareholders.
When Can a Company Be Deleted?
The act states that a private limited liability company can apply for deletion from the register if the following conditions are met:
- The company has not commenced its activities.
- This condition is confirmed by all members of the management board and all shareholders.
If your company satisfies these criteria, you can proceed with the simplified deletion process.
Key Differences from Traditional Liquidation
One of the primary distinctions between the simplified deletion process and traditional liquidation is the absence of certain requirements. In the traditional liquidation process, you would need to appoint a liquidator for the company, submit a liquidation balance, and provide annual reports. However, in the case of a simplified deletion:
- You are not required to appoint a liquidator.
- You do not need to submit a liquidation balance.
- There is no need to provide annual reports.
How It Works
Once you have applied for the deletion of your company and met the requirements, the Commercial Register will publish a notification on the Ametlike Teadaannete portal. After a waiting period of three months, your company will be officially deleted from the commercial register.
Starting a business in Estonia is an exciting journey, and knowing that the process of closing a company can be simplified under certain circumstances is reassuring for business owners. The streamlined deletion process, as outlined in the Business Register Act, offers a quicker and more straightforward solution for those companies that have not engaged in business activities. By understanding the requirements and steps involved, you can navigate the process with ease and efficiency, allowing you to move forward with confidence in your entrepreneurial endeavours.
Remember that you don’t have to navigate this process alone. If you need assistance or have any questions along the way, BBCTallinn is here to help. Don’t hesitate to reach out to us for expert guidance and support in managing the company deletion process. Your business journey is our priority, and we’re here to ensure it’s a smooth and successful one.