Ettevõttevormid

Ettevõttevormid, also known as forms of business organization, refer to the legal structures under which a business operates. In Estonia, the primary forms of business organization are regulated by the Commercial Code. The most common types include sole proprietorships, partnerships, and companies.

A sole proprietorship (füüsilisest isikust ettevõtja) is the simplest form, where an individual conducts business and is personally liable for all business debts. A partnership (osaühing) involves two or more individuals who agree to share in the profits or losses of a business. Partnerships can be general partnerships, where all partners share in operational responsibilities and liability, or limited partnerships, which have at least one general partner with unlimited liability and at least one limited partner whose liability is limited to their investment.

Companies are legal entities separate from their owners. The most prevalent company forms in Estonia are private limited companies (OÜ - osaühing) and public limited companies (AS - aktsiaselts). A private limited company is owned by one or more shareholders, with liability typically limited to the amount of their investment. They are not required to offer shares to the public. A public limited company, on the other hand, can offer its shares to the general public and is subject to more stringent reporting and regulatory requirements. Other less common forms include general partnerships (TÜ - täisühing) and limited partnerships (UÜ - usaldusühing). The choice of business form depends on factors such as liability, capital requirements, management structure, and tax implications.