Establishing a Business Entity in Estonia (Updated)

International Lawyers Network

1. Types of business entities -

The most common types of companies in Estonia are the public limited liability company ("AS") and the private limited liability company ("OÜ"). The OÜ may be compared to a closed corporation: its shares are not publicly traded and there are usually rather few shareholders. The shares of an AS, in contrast, are always in book-entry form and more easily transferable.

The main reason most businesses opt for the OÜ form is that the minimum share capital requirement is EUR 2,500 (does not have to be paid upon registration by an individual person), whereas for the AS it is EUR 25,000. By the end of 2022, the legislator plans to abolish the minimum share capital requirement for OÜ. In addition, OÜ form has more simple management structure (one level with sole management board member) and it does not have automatic auditing obligation.

Please see full Chapter below for more information.

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