Business forms differ mainly in terms of share capital, liability of the owners, and the way profits are distributed. Before choosing a legal form of business, it is recommended to consult an accountant or the State Revenue Service regarding the most suitable tax regime. The decision-making process can also be supported by the Business Activity Form Selection Tool, developed by the Swedbank Institute of Finance with the support of the Enterprise Register and the State Revenue Service.
| Limited liability company (SIA) | Limited liability company (SIA) with reduced equity | Individual merchant (IK) | Agricultural holding |
| Legal person | ⋁ | ⋁ | – | ⋁ |
| Number of owners | 1+ | 1 - 5 natural persons | 1 natural person | 1 or more than one natural person |
| A legal person may be the owner | ⋁ | – | – | – |
| Non-residents may be the owners | ⋁ | ⋁ | ⋁ | ⋁ |
| Equity | ≥2800 EUR | <2800 EUR | – | – |
| Annual turnover | – | – | >284 600 or >28 500 and >5 employees | – |
| The owner is liable with own property | – | – | ⋁ | ⋁ |
| VAT payer | ⋁ | ⋁ | ⋁ | ⋁ |
| Subject to Corporate Income Tax | ⋁ | ⋁ | – | ? If an annual report is prepared in accordance with the relevant legislation. |
| Subject to Personal Income Tax and MSSIC | – | – | ⋁ | ⋁ (?) No personal income tax is payable if the income has already been taxed with corporate income tax during the tax period. |
| May pay the micro-enterprise tax | – | – | ⋁ | ⋁ |
| Profit distribution | A part is paid as dividends (?) The distribution of profits is decided by the shareholders’ meeting. Profits are paid out as dividends. | A part is paid as dividends (?) The distribution of profits is decided by the shareholders’ meeting. Profits are paid out as dividends, with a portion allocated to mandatory reserves. | The owner retains the entire profit | The owner retains the entire profit |
| Management | Shareholders’ meeting and the board (?) The shareholders’ meeting considers internal governance matters. The management board of the SIA manages and represents the company and maintains accounting records. The establishment of a supervisory board is not mandatory. It is a supervisory body that oversees the company’s activities. | Shareholders’ meeting and the board (?) The shareholders’ meeting considers internal governance matters. The management board of the SIA manages and represents the company and maintains accounting records. The establishment of a supervisory board is not mandatory. It is a supervisory body that oversees the company’s activities. | Decisions are taken by the owner independently | Decisions are taken individually by the owner or jointly by agreement between the owners |
| State fee for registration | 75,00 EUR (?) A limited liability company (SIA) with two or more founders can pay a triple state fee for the application to be processed within one working day. | 20,00 EUR (?) A limited liability company (SIA) with reduced equity with two or more founders can pay a triple state fee for the application to be processed within one working day. | 30,00 EUR | 30,00 EUR (?) If a triple state fee is paid, the application will be examined within one working day. |