Share Capital of a limited company (OÜ) - Silva Hunt

Share Capital of a limited company (OÜ)

What is Share Capital?

Share capital is the portion of equity capital that is registered and approved by the articles of association. The minimum equity and net worth requirements are designed to protect creditors and enhance the company’s credibility.

Payment of Share Capital

Share capital must be paid upon the establishment of the company. To do this, you will need a business bank account. You must transfer the share capital from your personal account to your company’s bank account with the explanation “share capital.” Once this contribution is made, your accountant must declare it to the Estonian Tax and Customs Board (EMTA) by the 10th of the month following the payment. It is crucial to grant us access to EMTA immediately after starting the company.

Additional Information

As of 01.02.2023, there is no statutory minimum share capital requirement for a private limited company in Estonia. Founders can decide the amount of share capital based on the company’s planned activities and actual capital needs. This flexibility allows for tailored capital requirements. However, founders are responsible for any damage caused by incorrect assessment of contributions or establishment costs.

If the share capital is less than 2,500 euros and bankruptcy proceedings are terminated without declaring bankruptcy, the court may order the shareholder to pay an amount up to 2,500 euros if the administrator cannot cover fees and expenses from the debtor’s other assets.