Comparison of the primary features of each form of business:
| Form of business | Min. required start-up capital (euros) | Minimum required number of founders | Financial liability | Management |
|---|---|---|---|---|
| Sole proprietor | none | 1 | Unlimited liability | No management bodies |
| Private limited company | 2500 | at least 1 | Partners are not personally liable for the private limited company’s obligations | The obligatory management body of the private limited company is the management board; a supervisory board is mandatory only if specified in the articles of association. |
| Public limited company | 25 000 | at least 1 | Shareholders are not personally liable for the public limited company’s obligations | The supreme management body of the public limited company is the general meeting of shareholders; a public limited company must have a management board and supervisory board |
| General partnership | none; amount of the contribution is stipulated in the partnership agreement | at least 2 | Unlimited liability for the partnership’s obligations is shared equally by the partners | No obligatory management bodies; |
| Limited partnership | none; amount of the contribution is stipulated in the partnership agreement | at least 2 | At least one general partner has unlimited liability for the partnership’s obligations; at least one limited partner has limited liability to the extent of their contribution | No obligatory management bodies; |
| Commercial association | 2500 | at least 2 | Partners are not personally liable for the commercial association’s obligations unless agreed otherwise | The general meeting is the association’s supreme body, decision are made by voting, where every member of the association has one vote. The management board is the association’s management body. |
NB! From 01.01.2011 a private limited company can be established without contributing the share capital if the proposed area of activity does not require capital investments. The share capital of such a company will be formed by the liabilities of the founders amounting to the sum they promised to provide as share capital contribution.
Informatin was taken from Estonian Information System Authority