Commonly known as Osaühing or OÜ in Estonia, a private limited business is one where the share capital of the company is divided into private company shares. As a private limited company in Estonia, it is solely responsible for the performance of all its assets and liabilities, and there is no government interference. This further means that the individual shareholders of the company aren’t personally responsible for a private limited company’s obligation. However, the capital share must be less than 2,500 Euros.
In a scenario where the company founders are private persons having capital share is below the 2,500 Euros mark, they have the complete freedom to decide whether they want to pay off their share when setting up the company or wish to postpone the payment. Till the time, the founders haven’t made the full contribution, and they’ll be responsible for the missing contribution.
To start a private limited business in Estonia, the company must have a management board-this is as per the Estonian government. That management body will be representing the company to the government. In the management board, there must be one or two individual with active legal capacity. However, the board members need not own shares in the company.
In case, half of the company’s board members are not the residence of Estonia, and the company must have a commercial contact name and address in the country. In Addition, the foreign investor must provide his/her commercial registered address and email.
The private limited company may or may not have a special board to supervise the company’s operations. However, an auditor is mandatory by law, whenever the company touch a mark of turnover set by the government, along with asset value and number of employees.
Need more information? Then check the official website of the Estonian government to clear all your queries and doubts.