Accounting requirements in Estonia for new non-active companies

New Estonian companies, which are inactive (“dormant”), not VAT-registered and have no employees, will not have any ongoing monthly reporting obligations such as VAT returns or payroll tax declarations. The companies need only to submit annual reports to the Business Register. If the company has no financial activity, the report will be very simple, often including a balance sheet with zero entries and possibly a basic management report stating that there was no activity during the financial year.

While there's no formal "dormant company" status in Estonia, companies can inform the Estonian Tax and Customs Board that they have no taxable activity. This is typically done by submitting zero tax declarations (e.g., for VAT, corporate income tax). This notification ensures the tax authorities are aware of the company's non-operational status and helps avoid unnecessary tax audits.

If the company wants to start activity and to be compliant with Estonian legislation, it will be wise to choose an experienced accounting service provider.