mikroettevõtja

Mikroettevõtja is a term used in Estonian to describe a very small business typically operated by a single person or a small team. It refers to enterprises with modest activity, limited turnover and few or no employees. In a broader European context the label is aligned with the concept of a micro‑enterprise, distinguished by its small size and proportionally light administrative requirements.

Legal forms usually seen with mikroettevõtja include the Estonian füüsilisest isikust ettevõtja, a sole proprietor taxed under personal income rules, and, in EU practice, micro‑enterprises can also be registered as small private companies that meet size criteria (fewer than ten employees and limited annual turnover).

Accounting and taxation are typically simplified for mikroettevõtja compared with larger firms; taxation depends on jurisdiction, but regimes often allow straightforward income or corporate tax and, if thresholds are exceeded, VAT registration, with social insurance contributions due on business income.

Pros and drawbacks: The mikroettevõtja model supports entrepreneurship, freelancing, and local services by lowering start‑up costs and administrative burdens, but growth potential may be limited by financing options, regulatory thresholds, and the need to comply with tax and reporting requirements.

See also micro‑enterprise, sole proprietor and self‑employment.