microettevõtted

Mikroettevõtted are a classification of businesses in Estonia defined by their size and financial performance. They are characterized by having a very small number of employees, typically one or two, and low annual revenue. This designation is primarily used for tax and administrative purposes, offering certain benefits and simplified procedures to these very small enterprises.

The core idea behind the mikroettevõte concept is to reduce the administrative burden and tax obligations for individuals or very small teams who are essentially operating as self-employed or running a micro-business. This can include freelancers, sole proprietors, or very small startups in their initial stages.

To qualify as a mikroettevõte, a company must meet specific criteria related to annual revenue, number of employees, and total assets. These thresholds are set by Estonian law and can be reviewed periodically. The primary advantage of this status is a simplified accounting system and a more favorable tax regime, often involving a lower corporate tax rate or specific exemptions on profits distributed to owners.

The existence of mikroettevõtted encourages entrepreneurship by lowering the barrier to entry for starting a business. It allows individuals to formalize their small-scale economic activities without facing the complex regulations and higher costs associated with larger companies. This classification plays a role in supporting the grassroots economy in Estonia.