If you decide to close your company in Estonia, we recommend a so-called voluntary dissolution (liquidation), which is the traditional approach.
In practice, the entire liquidation process takes 7-8 months on average. There are numerous steps involved in the process, including compiling and submitting various applications and notices to the public authorities in Estonia. Some accounting and legal assistance will be required. There are also some required timelines that can’t be compressed to shorten the period. However, the process itself is rather straightforward and doesn’t require significant effort from your side.
As a prerequisite, your company has to complete the following steps before beginning the process:
- Stop business activity. Once the liquidation starts, your company cannot make new sales or purchases or make salary payments.
- Clear all debts and obligations (if you have none, just consider this a friendly reminder).
- Make sure that your Xolo account Dashboard is up-to-date, and there are no tasks that require your input: your bank account connections are valid, no undocumented sales or purchase transactions, invoices to Xolo are paid.
- Sell your financial assets and investments such as securities, stocks, bonds, crypto assets, startup investments etc. The income from realizing your investments must be transferred to your primary business account, and all (virtual) investment accounts have to be closed prior to liquidation.
Please make sure your e-Residency ID card (or Estonian Smart-ID) is valid to start the process. Starting the liquidation requires few digital signatures, but you do not need the ID card or Smart-ID once the liquidation officially starts. If you need to renew your ID card to start the liquidation, you can find the relevant application on the Estonian Police website.
There is also a requirement to appoint an official liquidator. Xolo's representative will be appointed as the official liquidator acting on your behalf to manage all the administrative and reporting tasks related to the closing process.
We're happy to assist our clients in this process if necessary, but this isn't included in our standard price.
Namely, we charge €499 + VAT for the assistance.
Xolo users:
The liquidation fee is a one-time fee, and once we enter the official process of termination (the petition to start the liquidation process was approved by the e-Business Register), no monthly fee will be charged in parallel. But you can also find an alternative service provider who's willing to do it - you're not tied to us. If you would like to move forward with the process please send us an email at support@xolo.io in advance when you'd like to initiate the process and whether you'd like to use Xolo or somebody else.
Not a Xolo user?
If you already have an Estonian e-resident company that you’d like to liquidate, Xolo can assist you with the process. Our fee for liquidation services is €499 + VAT.
To proceed, you will need to submit the following documents and reports:
- Balance sheet as of a specific date.
- Income statement for the relevant period.
- General ledger detailing your transactions.
- List of unpaid sales and purchase invoices (if applicable).
- List of fixed assets and contracts currently in effect.
- Valid contracts (e.g., employment, loan, etc.).
- Tax declarations for the required period.
If you're ready to initiate the liquidation process, simply send an email to support@xolo.io . Our team will guide you through every step of the way.