eratüurvaettevõte

Eratüürvaettevõte is an Estonian term that translates to private limited company in English. It is the most common form of business entity in Estonia. A private limited company is a legal entity separate from its owners, meaning the company's debts and liabilities are distinct from those of its shareholders. This separation provides limited liability protection to the shareholders, who are generally only liable for the amount they have invested in the company.

The establishment of an eratüürvaettevõte requires at least one shareholder and one shareholder. The minimum share capital requirement is currently €2,500, which can be paid in cash or in kind. The company is managed by a board of directors, which can consist of one or more members. The shareholders have the ultimate decision-making power, typically exercised at general meetings.

Eratüürvaettevõte are subject to Estonian company law and tax regulations. They are required to maintain accounting records and file annual financial statements with the Estonian Commercial Register. This business structure is popular for small and medium-sized enterprises due to its flexibility, relatively simple administrative requirements, and the limited liability it offers to its owners. It is a foundational element of Estonia's business landscape, facilitating entrepreneurship and investment.