The Share Capital in Estonia

Details about the share capital in Estonia

Estonia is great opportunity when it comes to foreign investments, which is why businessmen can choose to open several types of companies. However, some types of Estonian companies require a minimum share capital according to the Commercial Code.

Investors can opt for registering 5 types of companies: private limited companies, public limited companies, general and limited partnerships and commercial associations.

The types of businesses that require share capital are the Estonian holding companies: the private and public limited companies.

The minimum share capital for a private limited company (Osaühing or OÜ) in Estonia      

The minimum share capital for an Estonian private limited company (OÜ) is set according to the Companies Law at 2,500 euros, and the minimum value of a share must be 1 euro. If the share capital of a private limited company in less than 25,000 euros the contribution can be paid in time, but during this time the shareholders are personally liable for the company’s obligations. The share capital can be paid in cash, in assets such as real estate properties or other goods that must be evaluated, and in cash and assets, but in this case over half of the contribution must be paid in cash. The great advantage of the OU in Estonia is that it requires only one shareholder.

The minimum share capital for public limited companies (aktsiaselts or AS) in Estonia

The minimum share capital for an Estonian public limited liability company is 25,000 euros, which represents the highest amount to be paid as capital contribution, and it can be made either in cash or assets. The AS in Estonia allows for a large number of shareholders that will not be held personally liable for the company’s obligations. The capital of an Estonian AS is divided into shares that can be traded on the stock market. The shares of a public limited company will confer its owners voting rights. Where for the private limited company it is advisable to register its shares with the Estonian Central Registry of Securities (CRS), the public company is compelled to register its shares with the CRS.

 

If you want to register a company and need legal advice for the type of business that suits you the most, you can contact our law firm in Estonia.