The annual report is a mandatory document for every Estonian company, which must be prepared, signed, and submitted to the Business Register no later than six months after the end of the financial year. Signing and approving the report are important steps that confirm the accuracy of the report and its compliance with the law.
Who is required to sign the annual report?
The annual report must be signed by all members of the company’s management board. This means that if the company has, for example, three board members, all three must sign the report digitally. By signing, the board confirms its responsibility for the accuracy of the information presented in the report.
How to sign the annual report?
In Estonia, there are three common methods for digital signing:
- ID-card
The ID card is a government-issued identification document that contains a chip enabling digital signatures. Required tools:-
An ID card and a card reader
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DigiDoc software or another compatible signing service installed on the computer
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PIN codes (PIN1 and PIN2), provided when the ID card was issued
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The same applies to the e-Residency ID card, which allows foreigners without an Estonian address to give legally binding digital signatures and use Estonian e-services. The e-Residency card functions like a regular ID card but cannot be used for physical identification.
- Mobile-ID
Mobile-ID enables document signing via mobile phone, without the need for a card reader. Requirements:-
A Mobile-ID contract with your mobile operator
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A special Mobile-ID SIM card
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Signing involves entering your personal ID code and confirming the displayed verification code with your Mobile-ID PIN
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- Smart-ID
Smart-ID is a convenient app that works on smartphones and tablets. It does not require a card or SIM card. To use it:
- Download the Smart-ID app and register (using ID card, Mobile-ID, or bank credentials)
- Use either PIN1 or PIN2 depending on the type of activity
All three methods are secure and officially accepted by Estonian authorities, including the Business Register.
Can the annual report be signed by hand?
Usually, the annual report must be signed digitally, as this enables electronic submission to the Business Register without paperwork. A digital signature is legally equivalent to a handwritten one in Estonia and is the standard and preferred method.
However, manual signing is possible in exceptional cases, such as:
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When the company lacks the technical means for digital signing
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When a board member is abroad and cannot access digital signature tools
In such cases:
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The printed report must be signed by hand
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The report (and the approval protocol, if applicable) must be scanned in PDF format
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The scanned files are then submitted digitally via the e-Business Register
Note: If a report is signed manually, the Business Register may request additional documents (e.g., proof of identity), and the process may take longer. Also, the automatic workflows of the e-Business Register cannot be used in this case. It is strongly recommended to use digital signing, as it is faster, safer, and easier.
Approval of the report by shareholders or members
If the company has shareholders or members, the report must be approved at the general meeting after being signed by the management board. A meeting protocol must be prepared, also digitally signed, and submitted to the Business Register along with the report.
Why is it important to sign on time and correctly?
A properly and timely signed annual report demonstrates the company’s reliability and ensures compliance with legal obligations. If the deadline (6 months after the end of the financial year) is missed, the Business Register may impose a penalty or, in extreme cases, remove the company from the register.