Täisühingul

Täisühingul is a legal term in Estonian company law referring to a general partnership. It is a business association where two or more persons (natural or legal) agree to conduct business together. In a täisühingul, all partners are jointly and severally liable for the obligations of the partnership without limit. This means that if the partnership cannot meet its debts, creditors can pursue the personal assets of any or all of the partners.

The establishment of a täisühingul requires a partnership agreement, which outlines the rights, responsibilities, and profit/loss sharing arrangements among the partners. There is no minimum share capital requirement for a täisühingul. The management of the partnership is typically carried out by the partners themselves, unless otherwise specified in the agreement.

Profits and losses of a täisühingul are distributed among the partners according to the terms of the partnership agreement. Taxation is usually handled at the partner level, with each partner paying income tax on their share of the profits. A täisühingul is dissolved upon the withdrawal or death of a partner, unless the partnership agreement provides otherwise, or by mutual agreement of the partners or by a court order. This form of business entity is often chosen for its simplicity in setup and management, but the unlimited liability of partners is a significant risk.