Ettevõtted

Ettevõtted is Estonian for companies or enterprises and refers to the entities that carry out economic activities in Estonia. The term covers registered legal entities as well as individual entrepreneurs who conduct business. In practice, it encompasses a range of organizational forms, from small private ventures to larger corporate structures.

The main legal forms commonly used in Estonia are osaühing (OÜ), a private limited company; and aktsiaselts (AS), a public limited company. A füüsilisest isikust ettevõtja (FIE) operates as a sole proprietor. Other entities include non-profit associations (MTÜ) and foundations, which serve specific purposes rather than commercial activities. OÜ is by far the most prevalent form for small and medium-sized businesses.

Formation and governance: Companies are registered in the Estonian Business Register, with processes facilitated by digital identification and online services. The establishment can be swift, leveraging e-residency and remote verification. Governance depends on form: an OÜ typically has a management board, while an AS may have a higher level of corporate governance and shareholder oversight. Beneficial owners must be identified to authorities.

Taxes and regulation: Estonia operates a corporate income tax system that taxes distributed profits rather than profits as such. Reinvested or retained profits are not taxed until they are distributed as dividends. Other obligations include value-added tax (VAT) for taxable turnover, accounting, and annual reporting. The regulatory framework emphasizes transparency, accounting accuracy, and compliance with financial reporting.

Economy and impact: Ettevõtted drive earnings, employment, and innovation across sectors such as technology, manufacturing, trade, and services. Estonia’s digital administration and business-friendly environment aim to simplify formation, administration, and cross-border entrepreneurship.