Compulsory liquidation of a company
An Estonian company that has been deleted can be restored
Under normal circumstances, as a company owner, typically make decisions for your business.
However, in 2023, the Estonian government enacted legislation granting the business register authority to delete companies if their owners fail to comply with legal requirements.
The business register monitors directors’ adherence to legal obligations, and non-compliance can lead to the deletion of a company. Deletion occurs in two situations: failure to submit an annual report and absence of a designated contact person.
The business register abides by specific criteria for deleting a company without owner approval, including: no registered assets in Estonia, no involvement in ongoing legal proceedings, and consent from the tax office.
Notably, having assets or legal disputes outside Estonia does not prevent the business register from initiating the deletion process.
What happens next? After realizing that your company no longer exists, legal rights and liabilities are unaffected. The company’s obligations must still be fulfilled, and creditors can submit claims against the directors.
The subsequent steps depend on your business goals. If you wish to continue operations…
