Operating a Business

flag Estonia Estonia: Operating a Business

In this page: Setting Up a Company | The Active Population in Figures | Working Conditions | Cost of Labour | Social Partners

 

Setting Up a Company

Fuusilisest isikust ettevotja or F.I.E. (Sole proprietorship)
Number of partners: 1 person.
Capital (max/min): No minimum capital required.
Shareholders and liability: Liability is unlimited.
Osaühing or O.U. (Private Limited Company)
Number of partners: No minimum.
Capital (max/min): Minimum EUR 2,500.
Shareholders and liability: Partners' liability is limited to the amount contributed.
Aktsiaselts or A.S. (Public Limited Company)
Number of partners: No minimum.
Capital (max/min): Minimum EUR 25,000.
Shareholders and liability: Partners' liability is limited to the amount contributed.
Taïsühing or T.U. (General Partnership)
Number of partners: Minimum 2 partners.
Capital (max/min): No minimum capital required.
Shareholders and liability: The partners are solitarily liable for the obligations of the partnership with all of their assets. Limited liability for limited partner.
The Competent Organisation
Registration should take place at the Commercial Register.
 
Setting Up a Company Estonia Eastern Europe & Central Asia
Procedures (number) 3.0 5.3
Time (days) 3.5 11.8

Source: Doing Business.

 
Business Setup Procedures
Consult Doing Business Website, to know about procedures to start a Business in Estonia.
Trade Register

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The Active Population in Figures

201820192020
Labour Force 705,794703,864699,106

Source: International Labour Organization, ILOSTAT database

 
201720182019
Total activity rate 78.89%79.12%78.90%
Men activity rate 82.72%82.65%81.99%
Women activity rate 75.09%75.60%75.80%

Source: International Labour Organization, ILOSTAT database

 

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Working Conditions

Legal Weekly Duration
Legal duration is 40 hours a week.
Retirement Age
63 for men

60 for women

Working Contracts
There are fixed-term contracts, (their maximum duration is five years) and contracts with unspecified terms. A minimal part of the working populations has no written contract; conditions are agreed orally. These contracts cannot be extended over two weeks.
Labour Laws
Consult Doing Business Website, to obtain a summary of the labor regulations that apply to local entreprises.

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Cost of Labour

Minimum Wage
The minimum wage is EUR 584 per month in 2021 according to Eurostat.
Average Wage
According to Statistics Estonia data, the average salary was around EUR 1,316 per month in 2019 (latest data available).
Social Contributions
Social Security Contributions Paid By Employers: The rate is 33.8% (20% for social security, 13% for health insurance and  0.8% for unemployment insurance).
Social Security Contributions Paid By Employees: The rate is 3.6% (2% for a pension fund and 1.6% for unemployment insurance).

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Social Partners

Social Dialogue and Involvement of Social Partners
There are 2 major trade unions in Estonia:

 

 

 

- EAKL - Confederation of Estonian Trade Unions

- TALO - Estonian Employees' Unions' Confederation.

It should be noted that trade unions were reorganized following the independence of the country in the 90's. The trade unions gave up their role of acting as an "executing organ" and supporter of the Soviet Union system to gain freedom in acting in the state system and economy. The principles of social partnership were therefore established quite recently. A Trade Unions Act was drawn up and guarantees the right for employees to join a trade union.

 

Unions
Confederation of Estonian Trade Unions
Estonian Employees' Unions' Confederation
Unionisation Rate
Only 14% of Estonian employees are member of a Trade Union.
Labour Regulation Bodies
Ministry of Social Affairs

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Latest Update: April 2022