Types of Companies in Estonia

1. Private Limited Company (OÜ - Osaühing)

• Minimum Capital: No minimum requirement, can be established with as little as €0.01.

• Liability: Limited to the amount of the capital contribution.

• Management: Managed by at least one management board member; shareholders can also serve as managers.

• Ideal for: Small to medium-sized enterprises, startups, and entrepreneurs looking for limited liability.

2. Public Limited Company (AS - Aktsiaselts)

• Minimum Capital: €25,000.

• Liability: Limited to the value of shares held.

• Management: Requires a supervisory board in addition to a management board. A minimum of one management board member and at least three supervisory board members.

• Ideal for: Larger businesses aiming to attract investment, publicly trade shares, or have more complex governance.

3. Sole Proprietorship (FIE - Füüsilisest Isikust Ettevõtja)

• Minimum Capital: No minimum capital requirement.

• Liability: Unlimited personal liability for all debts and obligations.

• Management: Managed directly by the sole proprietor.

• Ideal for: Individuals engaging in smaller-scale business activities or freelance professionals.

4. General Partnership (TÜ - Täisühing)

• Minimum Capital: No minimum capital requirement.

• Liability: Unlimited liability shared among partners.

• Management: Managed equally by partners unless otherwise stipulated in a partnership agreement.

• Ideal for: Businesses operated jointly by partners who trust each other, typically smaller-scale.

5. Limited Partnership (UÜ - Usaldusühing)

• Minimum Capital: No minimum capital requirement.

• Liability: At least one partner (general partner) has unlimited liability; other partners (limited partners) have limited liability.

• Management: General partners handle daily management; limited partners typically invest without participating in management.

• Ideal for: Businesses where some partners wish to remain passive investors.

Branch Office (Filiaal)

• Not a separate legal entity. A branch office acts as an extension of the foreign parent company.

• Liability: Full liability rests with the foreign parent company.

• Management: Managed by a representative appointed by the parent company.

• Ideal for: Foreign businesses testing or expanding their presence in Estonia without establishing a separate legal entity.

Estonia’s straightforward business structure and transparent regulatory environment make it attractive for international entrepreneurs and investors.