Estonia business

General partnership (TU) or limited partnership (UU)

There are two type of partnership in the Republic of Estonia. The main difference is range of liability.

Equity capital there are no a minimum capital requirement. As in a general partnership, the members of a limited partnership divide the profit in correspondence with each one's contribution.

Founder – two or more persons or legal entities that join for business purpose.

Status – both partnerships are considered a legal entity.

Libiality - in case of General partnership the partners are jointly and severally liable for the partnerships' debts and obligations, and as general partners they manage the company entirely. At limited partnership one member is a general partner being in charge with the partnership's management, instead bearing unlimited liability for the company's losses and at least one limited partner who is liable to the extent of his contribution, but does not play any role in the company's management.

For both general partnerships and limited partnerships, there needs to be an agreement between the partners.

If you have questions about different type of entities in Estonia, do not hesitate to contact us.