osaühingud

Osaühingud, often abbreviated as OÜ, are a common form of limited liability company in Estonia. They represent a legal entity where the owners' liability is limited to the amount of their investment in the company. This means that the personal assets of the shareholders are protected from business debts and lawsuits. Osaühingud are a popular choice for small and medium-sized enterprises due to their relatively simple formation process and flexible management structure.

To establish an osaühing, a minimum share capital is required, though the amount can be nominal. The formation process typically involves drafting articles of association, registering the company with the Estonian Commercial Register, and appointing a management board. The management board is responsible for the day-to-day operations of the company, while the shareholders hold ownership and make key strategic decisions. Decisions are usually made through shareholder meetings.

The profits of an osaühing are distributed among shareholders in proportion to their shareholdings, after corporate taxes have been paid. The company is legally required to maintain accounting records and submit annual financial statements to the Commercial Register. This transparency is a key aspect of the Estonian business environment. The flexibility in ownership and management, coupled with the limited liability protection, makes osaühingud a cornerstone of the Estonian economy.