A non-profit association (Estonian: Mittetulundusühing, abbreviated MTÜ) is a legal entity established for activities that are not aimed at generating profit. An MTÜ can be founded by at least two persons (natural or legal) who share a common non-commercial purpose.

The MTÜ is governed by the Non-Profit Associations Act.

Legal and Financial Structure

• Must operate for a non-commercial purpose
• Can earn income, but profits must be reinvested into the mission
• Cannot distribute profits to members
• Liable for obligations only with its own assets

The association must maintain transparent financial records and submit annual reports to the Business Register.

Founding Requirements

• Minimum of two founders (individuals or legal entities)
• Founders do not have to be residents or citizens of Estonia
• Must have a legal address in Estonia
• Articles of Association outlining the purpose, governance, and structure

Registration is submitted electronically via the e-Business Register. e-Residents of Estonia can register an MTÜ remotely.

Management and Membership

• Must have a management board composed of at least one member
• Members of the board must be natural persons with legal capacity
• Board members may be residents or non-residents
• General Meeting is the highest decision-making body

The Articles of Association may specify additional roles, voting rights, and conditions for membership.

Taxation and Reporting

MTÜ-s may apply for income tax exemption if their activities meet certain public benefit criteria, as set by the Estonian Tax and Customs Board.

Annual reports must be submitted through the e-Business Register regardless of income level.

Useful Resources

• Non-Profit Associations Act (Riigiteataja)
• Estonian Tax and Customs Board
• e-Business Register (e-Estonia)