Why Start a Business in Finland?

Finland offers a highly competitive and supportive environment for entrepreneurs. Known for its innovation, transparency, and advanced infrastructure, Finland is an excellent destination for starting a business.

Advantages of Starting a Business in Finland

1. Stable Economy:
   • Finland has a highly stable economy, ranked among the best in Europe.
2. Business-Friendly Policies:
   • Transparent regulations and low corruption make it easier to do business.
   • A robust legal framework ensures intellectual property rights and business protections.
3. Access to European Markets:
   • As an EU member, businesses in Finland have access to the entire European Economic Area (EEA).
4. Government Support:
   • Grants, subsidies, and tax incentives are available for startups and SMEs through Business Finland and other agencies.
5. Highly Skilled Workforce:
   • Finland’s education system produces a skilled and multilingual workforce, ideal for modern businesses.
6. Technology and Innovation:
   • Finland is a hub for technological advancements, particularly in IT, clean energy, and healthcare.

Types of Business Entities in Finland

When starting a business in Finland, you can choose from the following legal structures:

1. Private Limited Company (Osakeyhtiö, Oy):
   • Most common type for startups and SMEs.
   • Requires a minimum share capital of €0 (since 2019).
   • Liability is limited to the amount invested.
2. Public Limited Company (Julkinen Osakeyhtiö, Oyj):
   • Suitable for larger businesses intending to trade shares publicly.
3. Sole Proprietorship (Toiminimi):
   • Best for small, individual businesses.
   • No minimum capital required.
4. General Partnership (Avoin Yhtiö, Ay):
   • Two or more partners share equal responsibility.
5. Limited Partnership (Kommandiittiyhtiö, Ky):
   • At least one general partner and one silent partner.
6. Branch Office (Sivuliike):
   • A foreign company can establish a branch in Finland.

Steps to Register a Company in Finland

1. Choose a Business Structure:
   Decide on the type of entity that best suits your business needs.
2. Reserve a Business Name:
   • Use the Finnish Trade Register’s online tool to ensure your desired name is available.
   • The name must be unique and comply with naming regulations.
3. Draft the Articles of Association:
   • For limited companies, prepare this document outlining company operations, board members, and shares.
4. Register with the Trade Register:
   • Submit your application to the Finnish Patent and Registration Office (PRH).
   • Provide details like business name, address, board members, and share structure.
5. Register for Taxation:
   • All businesses must register for VAT, employer contributions, and income tax with the Finnish Tax Administration.
6. Obtain Necessary Permits:
   • Depending on your industry, you may need specific permits (e.g., for healthcare, food services, or construction).
7. Open a Business Bank Account:
   • Required for managing business finances and fulfilling tax obligations.
8. Start Operations:
   • Once registration is complete, you can begin your business activities.

Documents Required

• Valid passport or ID
• Business plan
• Proof of registered business address
• Articles of Association (for limited companies)
• Tax registration forms

Costs and Timeline

• Costs:
  • Registration fee for a Private Limited Company: €275 (online) or €380 (paper form).
  • Other costs depend on permits, legal assistance, and operational setup.
• Timeline:
  • Registration typically takes 2–4 weeks, depending on the completeness of the application.