In short: liquidating a company is a process defined by law. The shareholders make a decision, a liquidator is appointed, creditors have 4 months to submit their claims, after which the assets are distributed and the company is deleted from the Business Register. Altogether it usually takes 6–12 months.
Last updated: 16 October 2026. Tax rates may change; before making a bigger decision, check the latest information from the Tax and Customs Board or ask us.
Why do entrepreneurs liquidate a company?
- Their focus has changed and the old company has been left “hanging” with no activity.
- The company's purpose has been fulfilled, for example in the case of a project company.
- The business is no longer profitable.
- They want to be rid of the administrative burden of reporting and obligations.
A company with no activity must still submit an annual report. If it isn't submitted, the registrar may compulsorily dissolve the company, which is an unpleasant process for the board member.
Liquidation steps
- Resolution and liquidator. The shareholders decide to liquidate the company and appoint a liquidator. The resolution is entered in the Business Register.
- Notice to creditors. The liquidator publishes a notice in the Official Announcements (Ametlikud Teadaanded). Creditors have 4 months to submit their claims.
- Putting the accounts in order. An opening liquidation balance sheet is prepared, and tax obligations and claims are checked.
- Paying debts and distributing assets. Once the deadline for claims has passed, the debts are paid and the remaining assets are distributed among the shareholders.
- Final balance sheet and deletion. A final liquidation balance sheet and a distribution proposal are prepared, and an application for deletion is submitted to the Business Register.
Examples
Example 1. An entrepreneur set up a small OÜ to provide services, later sold the business and moved abroad. The company stood idle: it earned no income, but reports still had to be submitted. Liquidation freed them from all future obligations.
Example 2. The owner of a manufacturing company sold the business to a larger group and liquidated the old company to avoid later confusion and double costs. Without proper liquidation, the company could have been left with tax debt and reporting obligations for years to come.
How KL Raamatupidamine helps
- We draw up the liquidation resolution and help appoint the liquidator.
- We put the accounts in order and prepare the liquidation balance sheets.
- We publish the notice to creditors and communicate with the authorities.
- We prepare the asset distribution and the application for deletion.
Price
| Service | Price (+ VAT) |
|---|---|
| Liquidation of a dormant company | from €399 |
| Liquidation of an active company | from €600 + accounting costs |
We'll give you an exact price once we've reviewed the company's situation. You'll find more information on our company liquidation page.
Frequently asked questions
How long does liquidating a company take?
Usually 6–12 months. The deadline for creditors to submit claims alone is 4 months.
Does an OÜ with no activity have to submit reports?
Yes. The annual report must be submitted even if there was no activity.
Can I do the liquidation myself?
You can, but mistakes are often made in the documents, notices and tax calculations, which drags out the process. With an experienced partner it goes more smoothly.
Want to close your company?
Tell us about your situation and we'll tell you how liquidation would work for your company and what it would cost.
Sources: Commercial Code (Riigi Teataja), RIK help information.