There is a non-profit organization form in Estonia – Mittetulundusühing
or MTÜ in short. Translated from Estonian language it means non-profitable organization.
Non-profit organization is a voluntary union of people with the aim to achieve goals stated in the articles of association.
The main purpose of such organization is achievement of goals in the field of culture, healthcare, education, civil rights protection of citizens or other activities in socially important areas. The activity of MTÜ is not connected to earning profit.
The activities of non-profit organizations are often of charitable nature, though it should be noted that not every non-profit organization is a charitable organization!
The Estonian legislation sets that the non-profit organization must have at least 2 founders and 1 management board member
. Any natural and legal person can be a founder. Special legal norms in the field of taxation are applicable to MTÜ.
Unlike commercial organization, (such as a private limited liability company OÜ or purblic limited liability company AS) the non-profit organization is obligated to pay income tax from its activities, unless when the company is listed as a charitable organization. If the company is added to the list of charitable organizations it becomes exempt from income tax. What is necessary to register an MTÜ?
- For establishment the members must have a meering and confirm the articles of association of the non-profit organization and sigh the establishment agreement.
- After the meeting it is necessary to present an application for the initial registration in the registry and pay the state fee.
If you have ideas about creating a non-profit organization in Estonia, or additional questions, please leave an inquiry