Company Liquidation (Standard Procedure)

Closing a company in Estonia requires a legally defined liquidation process. We offer full support for standard liquidation, ensuring all formal steps are followed — from the owner’s resolution to the final deletion of the company from the register.

This service is ideal for companies that are no longer active or needed. It ensures a clean and lawful exit, avoiding unresolved liabilities, penalties, or future administrative complications.

⚠️ Important:

It is not possible to simply “abandon” a company in Estonia without exposing the management board and shareholders to legal and financial risks. Unclosed companies may accumulate debts, trigger audits, and result in personal liability for board members.
Proper liquidation is the only safe and compliant way to cease operations.

Magrat’s legal team will guide you through every step to ensure your company is closed in full accordance with Estonian law.

What’s Included in the Standard Liquidation Service:

• Consultation on the liquidation process
• Drafting of owner’s resolution and appointment of current Management Board Member or third person as liquidator. What does it mean for you if you act as the liquidator:
  • We prepare all necessary documents to appoint you as the company’s liquidator
  • You will be legally responsible for submitting documents to the Estonian Business Register throughout the liquidation process
  • We guide and support you at every step: send reminders, assist with filings, and explain what to do and when
  • You will sign and submit documents
  • If needed, we help you understand your duties and ensure everything is done properly to avoid delays or legal issues
• Preparation and submission of the application to the Estonian Business Register
• Publication of the liquidation notice in Ametlikud Teadaanded (Official Gazette)
• Coordination of the full liquidation process
• Drafting of the liquidation report, final balance sheet, and asset distribution plan (available for existing Magrat accounting clients)
• Submission of the final petition for company deletion
• State fees included

Base Scenario
The current Management Board Member has an Estonian ID or e-Residency card and is appointed as liquidator.

Extra Costs (if applicable):

• 🔖 +€500 — if the Board Member does not have an Estonian ID/e-Residency card
• 🔖 +€600 — if Magrat provides a local liquidator (we handle the process on your behalf)
• 🔖 Translation costs — certified translation (if required) is billed separately

Please note that during liquidation, the company’s latest annual report or current balance sheet will be reviewed by Estonian Tax Department. If it shows that there are remaining assets or undistributed profits, you will be required to pay taxes in Estonia and potentially also in your country of tax residence. We recommend planning for this in advance to avoid any unexpected tax obligations.