üksikettevõtlus

Üksikettevõtlus is the Estonian term for sole proprietorship or sole trader. It is a legal business structure where an individual is the sole owner of a business and is personally responsible for all its debts and obligations. This is a common form of business ownership, especially for small businesses and freelancers in Estonia.

In Estonia, registering as a üksikettevõtja is a relatively straightforward process through the Estonian Business Register. The individual operates under their own name or a registered trade name. There is no legal distinction between the owner and the business itself, meaning the owner's personal assets are not separate from the business's assets and can be used to cover business debts.

The tax obligations for a üksikettevõtja are typically managed through the Estonian Tax and Customs Board. Income generated by the business is considered the personal income of the owner and is subject to income tax. Social security contributions are also payable by the owner.

One of the main advantages of üksikettevõtlus is its simplicity in setup and administration. There are fewer regulatory hurdles compared to more complex business structures like limited companies. However, the significant disadvantage is the unlimited personal liability. If the business incurs debts or faces legal claims, the owner's personal assets are at risk. This structure is often chosen by individuals starting out or those with lower risk tolerance for their ventures.