Finland is renowned for its innovative ideas that have a lasting global impact. From scientific excellence and technological breakthroughs to natural and organic food items in a highly industrialized economy, Finland is a lucrative ground for investors and business owners with far-ranging business opportunities.
This gorgeous Nordic country, streaked with deep woods and dotted with serene lakes, is designed with a state-of-the-art infrastructure. Despite the country’s relatively small size, it houses 24 airports, a cutting-edge modern railway system, seaways and canals.
Finland is rich in natural resources, precious metals and materials such as gold, silver, zinc, copper, lead, and limestone. The country is also one of the world’s largest source of timber, and one of the leading producers of wood on the planet.
Finland is historically competitive in manufacturing, accounting for about 30% of the country’s GDP. Its manufacturing prowess presents several lucrative investment opportunities in the fields of technology, real estate, logistics, clean energy, services tailored to businesses and communication technology.
Forms Of Companies In Finland
- Oy – “Osakeyhtiö” – Private limited company
- Oyj – “Julkinen osakeyhtiö” – Public limited liability company
- Ky – “Kommandiittiyhtiö” – Limited partnership
- Ay – “Avoin yhtiö” – General partnership
- Osk – “Osuuskunta” – Cooperative
- T:mi – “Toiminimi” – Sole proprietorship
What is the difference between Oy and Oyi in Finland?
In Finland, most foreign investors opt for one of the limited company types.
Most entrepreneurs choose to establish an Oy in Finland, and as of July 1st, 2019, the share capital requirement for a Finnish company is €0. This means that travel isn’t required to establish a company because there is no need for a bank account for company registration procedures.
A public limited company’s share capital is €80, 000 and must be paid in full in order to register the company.
Fundamentals Of A Limited Liability Company
Corporate Tax in Finland
VAT in Finland
Fundamentals of limited liability companies in Finland
|Limited liability company|
Osakeyhtiö - Oy
|Minimum Share capital||min 0 EUR|
|Registered office required||Yes|
|Physical office required||No|
|Min. number of Shareholders|
1, called member
|Min. number of Directors|
1, but one has to be an EEA member
|Local Director required||Yes|
|Other requirements||At least one of the Ordinary Members has to be resident within the EEA|
|Bank signatory must travel|
Yes, but bank account is not mandatory to be in Finland
|Timescale for company formation||Up to 3 weeks|
|Timescale for bank account opening||14 days|
|Timescale for obtaining VAT number||14 days|
|Statutory audit requirements||No|
|Shelf companies available||No|
How can I set up my company in Finland?
It takes around 3 weeks to set up a company in Finland.
The first step you need to take is to select a name for your company. In order to gain exclusive rights to the name, you must submit it to the Trade Register maintained by the Finnish Patent and Registration Office (PRH).
Once that is taken care of, you need to open a bank account for your business. Your company will require a bank account to process payment transactions, pay share capital, and facilitate accounting.
Next, you must file a notification regarding the commencement of business activities. The notification will have to be submitted to the Trade Register and the Tax Administration registers. You can do this in a single form (“Y form”).
You can make use of online tools and establish a limited liability company online using the Business Information System service.
When establishing a company in a foreign country, doing it alone is not the smartest business move. Without access to local industry-related information in Finland, you’ll be hard-pressed to skillfully navigate the bureaucratic pitfalls in place to successfully set up your business.
The best business decision you can make in this regard is to seek assistance from experts like us at CompyCo. Our experienced professionals will simplify the registration process for you and save you valuable time and resources with individualized advice so you can focus on your core business activities.
Our team ensures your company starts off on the right foot in Finland, so that it has the potential to be successful in a wholly new and different environment.
Bank Account Opening
Finland is home to a multitude of foreign-owned businesses started by enterprising individuals looking to expand their markets or partner with local Finnish companies. To begin the process, one of the initial steps is to open a Finnish corporate bank account.
Not sure how to go about that? We’ll break it down for you.
Opening a bank account in Finland is typically simple and straightforward. Some of the documents that are generally required are as follows:
- Extract from the Trade Register(no older than three months). If you haven’t registered your company as yet, you can have the extract from the Trade Register replaced by:
- A register certificate that indicates you have submitted a declaration of establishment.
- Documents of incorporation(for a limited company, these would include articles of association, memorandum of association, and the minutes of constitutive shareholder meetings).
- Extract from the minutes of the company’s Board of Directors, which indicates
- A decision made by the Board of Directors stating the account users.
- The names of the company officials authorized to use the account and their authorizations.
- Explanation detailing the nature and volume of payment transfers.
- Certificate of the company’s operations, including the origin of assets and foreign banking connections.
- Other company accounts.
Due to differences in requirements and procedures between banks, you should proactively confirm which documents you’ll be required to submit. The documents may be submitted in English, Finnish, or Swedish.
Here are some of the established and reliable banks in Finland are:
Accounting & Taxation
The accounting and taxation obligations to take into consideration are:
- The tax year is the calendar year in Finland, and taxable profits are trading profits, investments, and assets sold for more than their original cost. All businesses must keep accounting books.
- In Finland, the corporate tax rate is 20%.
- Finnish companies are issued VAT numbers with the format of the country code FI followed by a 9-digit number which ends with a letter. The current VAT rate is 24% on most goods and services. Exceptions apply.
How can you employ staff in Finland?
As a full-service company, our team of experts at CompyCo are equipped to provide all the necessary and additional services related to employing staff and setting up a payroll in Finland.
If you own a foreign company that needs to employ people in Finland to work from home, we can help you avoid having to go through local company registration. We will set your non-resident company up as an employer and provide an employment agreement along with all services related to HR for payroll services.
We always have our clients’ best interests at heart and are committed to saving you costs wherever possible. Learn more about International Human resources services here