Liquidation of the company? Can I put my company on sleep mode?
If the company does not trade, does not have any expenses or payouts, then it is possible to put company on sleep mode. However, every company must submit annual report/tax return even if company had zero transactions in the fiscal year. Also every company with non-resident director must have Authorised Contact Person and Virtual Office services hired. This means that company will have some expenses anyhow, in order to meet these requirements.
Dissolving the company requires liquidation process to be carried out, which has some costs involved. Liquidation process must include following steps:
- Preparation and sumbission of shareholder resolutions.
- Appointment of local resident liquidator who is Estonian resident and lives in Estonia
- Announcements in the public notice board
- Payment of public notice fee
- Payment of state fee for registering the liquidation
- Liquidation starting balance sheet and report
- Liquidation closing balance sheet and report
- Signing various documents and applications on behalf of the company as needed during the process
- Archiving of company accounting documents for minimum of 7 years, some documents are required to be archived for 10 or 50 years. Local resident company or person must be registered as depository of documents
- Shareholders who do not have valid e-residency, must either attend to Estonian notary or to authorise local liquidator for submission of petitions and documents.
Liquidation process usually takes about 8 months, until the company becomes completely deleted.
Our fee for liquidation service starts from €1500 which includes all services listed above. Accounting- and tax services fee may be applicable extra. Note, that we provide liquidation service only to companies who do not have outstanding liabilities to third parties.