Things do not always go according to the plan, and it’s completely OK. If a business doesn’t meet the hopes and expectations, or the circumstances demand the same, it is essential to initiate your company dissolution.
According to the Estonian legislation, an Estonian company’s activity cannot be suspended or paused — the company can either be active, in a state of liquidation or permanently liquidated. That’s why we strongly advise not to leave a company on its own when plans didn’t work out. It is important to act responsibly with a legal provider’s help to wrap this up and focus on new beginnings.
The most traditional way to liquidate a company in Estonia is a voluntary dissolution. Another potential option is to transfer a company to a new owner, simply put, to sell. Once you’ve decided not to run your company anymore, it is also possible to merge your company with another company, or in the case of a single shareholder, with an individual’s assets.
Any possible way of a company liquidation takes effort and should be approached with responsibility. Please be aware that the termination of a company is a long legal process that is nearly impossible to realise without legal support.
In this blog article, we’ll be looking into the most common ways of closing your company in Estonia.