As a business owner, there may come a time when you need to dissolve your company. This can be for a variety of reasons, such as retirement, health reasons, or simply because the business is no longer profitable. Whatever the reason, if you find yourself in this situation, it’s important to know the steps you need to take in order to dissolve your company in Estonia. This guide will walk you through everything you need to know, from voluntary dissolution to selling your company.
Voluntary Dissolution
The first option is to disband a business through the approval of shareholders. This motion must be approved by at least two-thirds of the shareholders. Following this, the management board must submit a formal application to the Commercial Register. The process then moves on to liquidation, which can take anywhere from 6 to 9 months on average.
Following this, the management board and an authorized liquidator must submit a formal request to the Commercial Register to dissolve the firm. The annunciation of liquidation will then be placed in the public domain, with a notice sent out to all known creditors.
It’s worth noting that to be a member of the management board, you must possess an Estonian e-Residency card.
Lastly, within the first 3 months of liquidation, all taxes and debts must be paid off. After this, the final accounts are submitted to the Commercial Register, and the company is officially dissolved.
Selling Your Company
Another route you can take is to sell your company, rather than dissolve it. This has the added benefit of generating revenue, which can be used to pay off any outstanding debts. When selling a company, it’s important to remember that you must first find a buyer who is willing to purchase the business.
The first step in selling a company is finding a potential buyer and going to a notary. Submit all required documents, including annual reports, accounting statements, and corporate taxes. It is common to use the services of legal providers to help with finding a buyer and managing the legal procedures. The process of re-registering a company can be done by power of attorney or by a personal visit, and usually takes 5 business days.
If you choose the power of attorney option, you will need to prepare and send documents to the provider. The company transfer process will take about 2 weeks. If you choose to re-register in person, you will need to make an appointment with the provider.
Dissolving a company can be a difficult decision, but it’s important to know all of your options. If you’re considering dissolving your company in Estonia, we hope this guide has been helpful. For more information about how LEGID can help you, please visit our website or contact us today at hi@legid.app. Our lawyers will be happy to help you through every step of the process.