Provisions governing commercial co-operatives are included in the Associations Act. A trader operates through an enterprise, which includes objects, rights and duties pertaining to the trader. In case ownership or possession of the enterprise is transferred, the liabilities of the enterprise are also transferred. Commercial Registers are established in town courts or county courts and are organizationally attached to the Real Estate Registers. A register is kept in Estonian and all documents in other languages are to be submitted with a translation verified by the notary public.
Bankruptcy is defined as the insolvency of a debtor declared by a court order.
A debtor is considered insolvent if he is unable to satisfy the claims of creditors, and due to the financial situation of the debtor such inability is not temporary. The purpose of the Act is to safeguard free competition based on the interests of free enterprise within the territory of Estonia. The Competition Act is also applicable in case the violation of competition takes place outside the Estonian territory, but competition is violated within the territory of Estonia. According to the Competition Act, violations of competition freedom may eventuate in unfair competition or in restriction of competition. A restriction of competition freedom or establishment of competition restrictions by the decisions or acts of an executive state authority and local government, which breach the Competition Act or any other legislative act, are also regarded as a violation of competition freedom.