oíd

OÜd is the plural form of OÜ, the Estonian abbreviation for osaühing, which translates to a private limited liability company. In Estonia, an OÜ is a widely used form for private businesses, offering limited liability for its shareholders and a relatively simple governance structure. OÜs are regulated under the Estonian corporate framework and must be registered with the Estonian Centre of Registers and Information (Äriregister).

An OÜ can be founded by one or more natural persons or legal entities. Founders draft Articles of Association and register the company with the Äriregister. The minimum share capital for an OÜ is 2,500 euros, contributed by the shareholders in cash or in kind. The company is managed by a management board, which can consist of one or more managers; a single person may serve as both owner and manager. A registered address in Estonia is required for the company.

Liability for shareholders is limited to the amount of their paid-in share capital; founders and investors are not personally liable for the company’s debts beyond their contributions, subject to applicable law.

Taxation in Estonia distinguishes between reinvested and distributed profits. Corporate income tax is generally applied to distributed profits, while retained earnings are not taxed until distribution. This regime supports reinvestment, and additional payroll taxes apply if the OÜ employs staff. The exact tax treatment can vary with circumstances, including business form and activities.

OÜs are common among startups and small to medium enterprises because of straightforward formation, flexible ownership structures, and the limited liability they provide. They can be fully owned by Estonian residents or foreign investors, and they can participate in international trade and contracts through the Äriregister and relevant legal channels.