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The amendment of Bankruptcy Act entered into force, where the commencement of the term of the obligation to submit bankruptcy petition shall be suspended for the time of emergency situation due to coronavirus and two months thereafter. Aet Sallaste, head of legal services in Grant Thornton Baltic explains who are concerned by the amendment of the Bankruptcy Act.

Temporary subsidies from the Unemployment Insurance Fund will be paid to those employees who are working under an employment contract and whose employers are significantly impacted by the current extraordinary circumstances. Grant Thornton Baltic advisors can help you assess whether your company qualifies for this measure, draw up the staff documents necessary to apply for the subsidy and assess the necessity and scope of applying for the subsidy.

A private limited company in Estonia can be founded with or without making a contribution. Only individuals have the option of starting a company without making the contribution. Legal persons setting up a private limited company must always make a contribution, either monetary or non-monetary.

A situation where a company gives or guarantees a loan to a shareholder, partner or board member comes up all the time. Yet the Commercial Code does set out restrictions on granting loans. I will discuss some of the most likely problems and potential tax risks below.