Uksikettevõtluse

Uksikettevõtluse, which translates to sole proprietorship or individual entrepreneurship in English, is a common form of business ownership in Estonia. It is a legal structure where a single individual owns and operates a business. The entrepreneur is personally responsible for all debts and liabilities incurred by the business. There is no legal distinction between the owner and the business itself, meaning the owner's personal assets can be used to satisfy business obligations.

Establishing an uksikettevõtlus is generally straightforward and involves registering the business with the Estonian Commercial Register. This process typically requires providing personal identification details and information about the intended business activities. The administrative requirements are usually less complex compared to other business structures like limited companies. Sole proprietors are responsible for managing all aspects of their business, including finances, operations, and compliance with relevant laws and regulations.

Taxation for uksikettevõtlus is based on the individual's income. Profits generated by the business are considered the personal income of the sole proprietor and are subject to personal income tax. While the simplicity of setup and operation is a key advantage, the unlimited personal liability is a significant consideration for potential entrepreneurs. This structure is often chosen by individuals starting small businesses, freelancers, or those offering specialized services where the risk is perceived as low.