Üksikettevõtja

Üksikettevõtja is the Estonian term for a sole proprietor or sole trader. It refers to a natural person who engages in business activities independently, without forming a separate legal entity. This is the simplest form of business ownership in Estonia.

The key characteristic of an üksikettevõtja is that the business is not legally distinct from the owner. The individual owner is personally liable for all business debts and obligations. This means that their personal assets can be used to satisfy business liabilities.

To operate as an üksikettevõtja, an individual must register their business with the Estonian Commercial Register. This registration process is relatively straightforward and involves providing personal details and information about the intended business activities. Once registered, the üksikettevõtja is assigned a business registration code.

An üksikettevõtja is responsible for managing all aspects of their business, including accounting, taxation, and legal compliance. They must pay income tax on their business profits. Depending on the nature and scale of the business, there might be specific permits or licenses required.

This form of business is popular for individuals starting a small business, freelancers, and those offering specialized services. It offers flexibility and ease of administration, but the unlimited personal liability is a significant consideration for potential business owners. The legal framework in Estonia allows for the conversion of an üksikettevõtja into other legal forms, such as a private limited company (OÜ), if the business grows and requires a more robust structure.