company incorporation estonia

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(+44) 203-287 0408
Company Formation Estonia



Changing Company Types in Estonia

Updated on Monday 08th January 2018

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Changing-Company-Types-in-Estonia.jpgEntrepreneurs who are carrying out business activities in Estonia are allowed to change the legal entity under which their company is working at the moment, in accordance with the rules and regulations imposed by the local authorities. In other words, when opening a company in Estonia, the business is not required to be maintained under the same legal entity until the investors choose to shut it down or to dissolve it. This option is available due to a set of factors, such as the development of the company to an extent in which the current legal entity can no longer represent the best interests of the businessmen. Our team of Estonian company formation representatives can provide assistance on the changing procedure. 

Why change the legal entity?  

The Estonian legislation allows businessmen to change various legal entities in other business forms. This type of procedure can be necessary in some cases, for example, when the investor wants to have other types of obligations and rights (more or less). Over the years, the business may be better represented if it would be carried out under a different company type.  
A partnership in Estonia can be changed into a limited liability company or a corporation. At the same time, the corporation can be set up under other type of legal entity; our team of Estonian company formation consultants can offer more details in this sense. 

Change a sole proprietorship into a limited company in Estonia  

One of the most common changes referring to the legal entity is the transformation of the sole proprietorship, which is the simplest type of business form, into a limited liability company (LLC)
Under the local legislation, between the investor and the legal entity there are no difference in terms of liabilities, which means that the businessman can become liable with his personal assets for the debts incurred through the business. In order to change it, the investor should close down the sole proprietorship, and open a new business as required by the LLC incorporation procedure
The main advantage of a LLC is that there is a very clear distinction between the investor and the company, which is a separate entity. 
Businessmen interested in receiving more details on the ways in which the legal entity of a company operating in Estonia can be changed, may address to our team of Estonian company incorporation agents.  

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Call us now at (+44) 203-287 0408 to set up an appointment with our consultants in Tallinn. As our client, you will benefit from the joint expertise of local advisors  for opening a company in Estonia.

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The experts at offer high quality company formation services at very competitive prices. I would definitely recommend them. We have benefited a lot from the advice they gave us and the answers to our questions.

Francesco Dagnino, Partner of Lexia Avvocati