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Commercial Law in Estonia

Commercial Law in Estonia

The Estonian judicial system is based on the Continental and the German legal systems. The particularity of the Estonian law system consists in the fact that all legal matters are resolved according to these codifications.

The commercial law in Estonia provides the same benefits for foreign investors as for local companies. Foreign investors can open companies in Estonia without any special requirements or restrictions. Estonia has international treaties that protect foreign investments with several countries and it also has double taxation agreements with over 30 countries.

In September 1995 a new Commercial Code was enabled and its role is to define the Estonian company and the role of the Commercial Register. There are five types of structures the Estonian Commercial Code acknowledges.

Types of Estonian companies detailed in the Commercial Law in Estonia

The sole proprietorship (füüsilisest isikust ettevõtja or FIE) in Estonia

Natural persons are allowed to start sole proprietorships in Estonia and can register with the Commercial Register if they want to or if they register as tax payers under the Estonian Value Added Tax Act.

The general partnership (täisühing or TÜ) in Estonia

Two or more persons are allowed to enter a general partnership and each one of them will be held liable for the obligations of the partnership. The law does not require a start-up share capital but the partners must submit to the Commercial Register data regarding the name, the business activity and the share contributions. This type of Estonian partnership can be dissolved by agreement, by a court’s ruling or at the end of a project.

The limited partnership (usaldusühing or UÜ) in Estonia

The Estonian limited partnership can be started by two or more individuals, where one of the partners will be a general partner and will be held liable for the obligations of the company with all his or her assets, while the limited partner will be held liable to the extent of his or her contributions. The limited partner will not have management or representation rights unless agreed otherwise.


The private limited company (osaühing or OÜ) in Estonia

The Estonian private limited company is made by two or more shareholders that must bring a minimum share capital of 2,500 euros, with a nominal value per share of 1 euro. The main advantage of the private limited company is that the shareholder will not be held liable for the company’s obligations. The private limited company must have at least one director and a management board and also an auditor if the share capital exceeds 25,000 euros.

The public limited company (aktsiaselts or AS) in Estonia

The Estonian public limited company can be incorporated by one or more individuals or legal entities and the shares of the company will be traded on the stock exchange.  The minimum share capital for a public limited company is 25,000 euros and the minimum nominal value of a share is set at 10 eurocents. The shares of this type of company must be registered with the Estonian Central Register of Securities. Public limited companies in Estonia have general meetings of the shareholders, management board and a supervisory board. The general meetings of the shareholders has the greatest authority, appoints the supervisory board and meets once a year. The management board is the administrative body of the company and manages the company, while the supervisory board appoints and controls the management board. Members of the management board cannot be in the supervisory board.

In addition to business and commercial law information, our team can also give you details about the grounds for obtaining residency in Estonia. You can reach out to us if you have questions about the types of temporary and permanent residence permits, how to apply for your first temporary stay permit, or how to reunite with your family. We will also assist during the application process.

If you want to open a company you can contact our law firm in Estonia for details about the incorporation process.

Our team also assists clients who are interested in matters other than commercial ones. We are able to provide assistance in matters concerning relocating to the country, temporary and permanent residence permits, as well as the conditions for obtaining Estonian citizenship by investment. You can reach out to our experts for more information about the process for citizenship and the needed examinations.   

For those interested in matters concerning Estonian immigration, our team can answer specific questions according to the applicant’s nationality. This influences ones application for the right of permanents stay in the country after five years: EU/EEA citizens apply for the right of permanent residence while citizens of other countries apply for the long-term residence permit.