Paul Horma was born near Vastseliina in Võrumaa. His father was an amateur carpenter, so Horma was familiarised with the art of woodcutting at an early age. He enrolled in the Pallas Art School and among his teachers were Konrad Mägi, Ado Vabbe and Anton Starkopf. He began making sculptures at the age of 16, when he had only one and a half weeks to make a statue of Christ for the Vastseliina Church. He participated in an exhibition for the first time in 1924.
Horma became a freelance sculptor in 1929. He created portraits, decorative statuettes, figural sculptures and monuments. During the Soviet era, Horma was expelled from the Artists’ Association, and for several years he worked as a restorer: he participated in the restoration of Kadriorg Palace and restored sculptures that had been damaged during the March 1944 air raids.
Horma never held any solo exhibitions.