A municipal enterprise shall be an enterprise, established from funds legally belonging to the municipal enterprise, or shall be one which has in accordance with the law, been transferred over to municipal ownership, whose entire property belongs to the municipal authority by right of ownership, however, the enterprise administers, utilizes and disposes of it in accordance with property trust rights. A municipal enterprise is a limited liability public entity. Owner of a municipal enterprise is municipal itself. The legal basis for the establishment of a municipal enterprise is the enterprise  establishment act,  adopted by the municipal council.

Foundation act shall include:


  • Name of a enterprise;
  • The purpose of founding the enterprise;
  • The institution implementing enterprise’s owner’s rights and duties;
  • The assets transferred to the

Enterprise is considered fully established after registered in Register of Legal Entities.