iduettevõtetes

Iduettevõtete, also known as dual companies or holding companies, are a type of business structure commonly used in Estonia. They consist of two separate legal entities: a parent company and a subsidiary. The parent company is typically a limited liability company (AS), while the subsidiary is usually a public limited company (AS).

The primary purpose of an iduettevõte is to separate the ownership and management of a company. The parent company holds the shares of the subsidiary, while the subsidiary conducts the day-to-day operations. This structure allows for a clear distinction between the ownership and management of the company, which can be beneficial for tax planning and risk management.

Iduettevõtete are also known for their flexibility and ease of establishment. The process of setting up an iduettevõte is relatively straightforward, and the companies can be established in different jurisdictions, allowing for international expansion.

However, iduettevõtete also have their drawbacks. The double taxation of profits, as the subsidiary's income is taxed in the country of its establishment and then again when it is distributed to the parent company, can be a significant disadvantage. Additionally, the complexity of the structure can make it difficult for non-specialists to understand and manage.

In conclusion, iduettevõtete are a unique and flexible business structure that can offer numerous benefits, but they also come with their own set of challenges. They are particularly popular in Estonia due to the country's favorable tax laws and business-friendly environment.