What are the biggest differences between Estonian business forms?
- Private limited company
There is no personal responsibility. Unless the shareholder or member of the management board does something criminally or directly to the detriment of the private limited company. For example, a company takes property. This needs to be done more cunningly.
2. General partnership
The shareholder is fully responsible. One shareholder is also appointed as a member of the management board, while the other shareholder remains anonymous. That must be kept in mind.
3. Non-profit organisation
It shouldn’t be here, but it is. But often the name does not correspond to the real thing. A business can be done that meets business objectives. There is no responsibility until something is done criminally.