Form of government:Parliamentary republic
Area:45 227 km2
Limited Liability Company in Estonia
By law, a private limited liability company may be managed by a board that consists of at least one director. Only natural persons have the right to be a director, and at least 50% of the board must be residents of the EU, Norway, Switzerland, Liechtenstein or Iceland. In Estonia, there are no mandatory requirements for the establishment of a supervisory board, and if the authorized capital of a company is higher than €25,000, then it is mandatory to create a supervisory board.
Public limited companies are expensive, but the shares of the company are freely circulating and can be listed on the Estonian Stock Exchange without any problems. To register an individual, the authorized capital must be at least €25,000. As for the duties of the supervisory board, they include the management of the company, as well as control over government activities. The Supervisory Board should report to the shareholders on the work of the company, as well as its performance. The Supervisory Board may also issue orders to the board regarding the organization of the activities of a public company. The Supervisory Board may have no more than three members, but if necessary, more employees may be appointed.
Private limited companies must adhere to bookkeeping requirements and are also required to appoint an auditor. The Supervisory Board and the Management Board are the governing bodies, they regulate and control the activities of the company. The shareholders themselves cannot be members of the board of the company, since the management must not consist of one director, and at the same time they must be individuals.