Ettevõtlusvormiga

Ettevõtlusvormiga refers to the legal form a business takes. In Estonia, as in many countries, choosing the correct legal structure is crucial for various reasons, including liability, taxation, and administrative requirements. The most common forms of business in Estonia include sole proprietorship (füüsilisest isikust ettevõtja - FIE), private limited company (osaühing - OÜ), and public limited company (aktsiaselts - AS).

A sole proprietorship is the simplest form, where an individual conducts business activities directly. The owner is personally liable for all business debts and obligations. This form is often chosen by freelancers or individuals starting small-scale operations due to its ease of setup and minimal administrative burden.

A private limited company is a separate legal entity from its owners (shareholders). Liability is limited to the amount of capital invested in the company. OÜs are a popular choice for a wide range of businesses, offering a balance between limited liability and manageable administrative complexities. Shares in an OÜ are not publicly traded.

A public limited company is also a separate legal entity, but its shares can be offered to the public. This typically involves a more complex structure and stricter regulatory requirements compared to an OÜ. ASs are generally suited for larger enterprises that may seek public investment or have a significant number of shareholders.

The choice of ettevõtlusvormiga impacts how profits are taxed, how decisions are made, and the personal exposure of the business owners to financial risks. Legal and financial advice is often sought to determine the most appropriate form for a specific business venture.