Limited liability partnership (OÜ)

This corporate form of a legal person is directed for companies that are involved in small or medium businesses.

Main details:

• analogue to the limited liability company;
• share capital size – 2500 euros;
• the share capital may be not paid out until the first distribution of dividends;
• number of shareholders, no more than 10;
• at least one shareholder is required;
• for registration one natural person is enough (can combine the position of a founder and management board member)
• the member of the board may not pay himself a salary, but has authority identical to a director – the right to sign agreements on behalf of the company, manage company business activities and open accounts in bank institutions.

Public limited company (AS)

A commercial partnership with a capital divided by shares. In most cases is more suitable for large businesses.

Main facts:

• the share capital no less than 25,000 euros(monetary/or property based capital payment forms);
• similar to AO or PAO depending on how the articles of association are drawn up;
• minimal amount of natural persons to open – 4 people. This includes one founder plus management board member (same person) and three supervisory board member (the minimal amount as stated by law).

Non-profit organisation (MTÜ)

Non-profit organisation is opened for activities that are done in public favour or for charity purposes, such as funds, associations or unions.

Main data:

• types of activities of the organisation are limited by the articles of association;
• the minimal amount of shareholders – 2 persons;
• both natural persons and legal personas can be the founders. MTÜ (non-profit organisation) has no right to pay out dividends;
• the organisation type does not include an option of paying out dividends;
• all monetary funds are accounted for;
• the funds necessary for maintenance of the organisation (salaries, rent, purchase of consumables, equipment, other related costs), are defined by the meeting of the organisation members;
• accounting is analogue to OÜ.