Do I need to do annual reporting?
As a business owner, yes you do. Your accountant does the annual reporting.
So all you need to do is upload your expense documents and invoices every month and your accountant’ll take care of the rest.
Do I need external auditing?
An external audit of your annual accounts is not compulsory if your company is smaller than:
€4 000 000 in sales revenue or income per year,
€2 000 000 total assets as of the balance sheet date,
50 people as the average number of employees.
If this is the case, Your accounting and tax reporting services should be sufficient to make sure that everything is compliant in Estonia.
What implications does the financial year have?
A standard financial year for your company starts on January 1st and the financial year is 12 months long.
For example, if you start your company after July 1st (in Q3 or Q4 of the first year) then your accountant consolidates this period and the 2nd year into one financial year by default. You‘d need to submit your first annual report after the financial year of the second year has ended and you can pay dividends at the beginning of the third year at the earliest.
However, if a company which was registered in Q3-Q4 of their first year earns profit during this period, and wishes to pay dividends earlier, then LeapIN can submit the annual report in Q1 of the second year at your request. In this case, the company can already pay dividends at the beginning of the second year.
In the event of a funding round, would you be able to help with the paperwork?
Your accountant can help you find a trusted legal partner in Estonia. However, it’s not currently part of our services.
We don’t support any alternative crowdfunding or external financing initiatives by our customers, except from the single shareholder (share capital or a loan). Such needs are exceptional ones among our existing/target customers and would require a custom solution, going beyond our standardized approach. For instance, as long as you run your company alone, all corporate governance issues (voting rights, decision making policies etc.) are irrelevant. However, once you include additional shareholders, these issues start to matter, and the standard Articles of Association needs to be adjusted to reflect the agreements between the shareholders.
Can I operate freely with company money (e.g. on year-to-year declaration basis)?
You cannot operate freely with the money belonging to your business (e.g. use this for personal use), your business’ money and your own personal money must be kept separate.
LeapIN will execute monthly reporting and your business bank accounts must match business documentation (e.g. sales and purchase invoices), which you can administer easily with LeapIN.
Please note that LeapIN does not accept cash transactions (e.g. taking cash out of ATM with your bank card).
REF :If you wanna be e-residence and opening a company contact to https://www.xolo.io/