moeettevõte

A moeettevõte, often translated as a "sole proprietorship" or "single-member undertaking," is a legal structure for a business in Estonia where the business is owned and run by one individual. There is no legal distinction between the owner and the business. This means the owner is personally responsible for all debts and liabilities of the business.

Establishing a moeettevõte is relatively straightforward and typically involves registering the business with the Estonian Commercial Register. The owner uses their personal identification code for registration. There are no requirements for a minimum share capital. The owner is responsible for all aspects of the business, including its operations, finances, and legal obligations.

Profits generated by a moeettevõte are taxed as the owner's personal income. Similarly, any losses incurred by the business can be offset against the owner's other income. Due to the unlimited personal liability, owners are advised to consider insurance or other risk management strategies. This business structure is common for freelancers, small service providers, and individuals starting a new venture due to its simplicity and low administrative burden. However, the personal liability aspect is a significant consideration for potential owners.