Ettevõte

Ettevõte is the Estonian term for a business entity engaged in economic activity with the aim of profit. It encompasses a range of legal forms, from sole proprietorships to joint-stock companies. The most common forms in Estonia are füüsilisest isikust ettevõtja (FIE), which is a sole proprietor; osaühing (OÜ), a private limited company; and aktsiaselts (AS), a public joint-stock company. There are also partner forms such as täisühing and usaldusühing.

In Estonia, a business entity is typically established by registration in the Commercial Register (Äriregister), which is overseen by the judiciary. The register records the entity’s name, address, legal form, management board or council, share capital, and, for corporations, articles of association. Most entities must submit annual reports and financial statements, depending on size and form. Companies can be formed and managed online, and Estonia’s e-Residency program enables non-residents to establish and administer a company remotely.

Taxation follows Estonia’s widely known system where corporate income tax is charged on distributed profits rather than on profits as they are earned; profits retained in the company are not taxed until distributed. This regime applies to many types of Ettevõte operating in Estonia.

The term Ettevõte is used widely in business and economics to refer to any business entity, and it intersects with concepts such as entrepreneurship (ettevõtlus) and business environment in Estonia.