üksikettevõttes

A üksikettevõtte (*singleship enterprise* or *sole proprietorship* in English) is the simplest and most common form of business organization in Estonia and many other countries. It is defined by a single owner who operates the business without forming a separate legal entity. The owner is personally responsible for all business activities, finances, and obligations, meaning personal assets may be at risk if the business incurs debts or legal liabilities.

In Estonia, a üksikettevõtte is registered with the Commercial Register (*Äriregistri*) under the Commercial Code. Registration is straightforward, requiring minimal formalities such as submitting basic business details, the owner’s identification, and a declaration of liability. Unlike corporations, a üksikettevõtte does not require a separate bank account or formal governance structure, making it cost-effective and easy to manage.

Taxation for a üksikettevõtte follows the owner’s personal income tax rules. Profits are reported on the owner’s individual tax return, and the business is subject to a flat income tax rate of 20% (as of recent regulations). Additionally, the owner must pay social tax contributions based on their earnings. While this structure simplifies tax filing, it also means that business losses can be offset against the owner’s personal income, potentially reducing taxable earnings.

One of the primary advantages of a üksikettevõtte is its flexibility and low administrative burden. The owner retains full control over decision-making and operations without needing to consult partners or shareholders. However, this also means unlimited liability, as creditors can pursue the owner’s personal assets if the business fails to meet its financial obligations. Another drawback is limited access to capital, as banks and investors may be hesitant to fund a business without legal separation between the owner and the entity.

A üksikettevõtte is well-suited for small-scale operations, freelancers, consultants, or sole traders. For businesses expecting rapid growth, high liability risk, or the need for external investment, alternative structures such as an *osakaasaasutus* (partnership) or *aktsiaselts* (joint-stock company) may be more appropriate. Overall, the yksikettevõtte remains a popular choice for entrepreneurs due to its simplicity and minimal regulatory requirements.