INCORPORATING A COMPANY AND SETTING UP A BUSINESS IN FINLAND

Introduction

Finland’s economic stability and high-tech industrial base has made it a key target for international investors. Anyone can set up a limited company in Finland, irrespective of nationality, so long as one of the company’s founding members is resident in the European Economic Area. If the founder is a legal person, its domicile should be in an EEA country (the EEA compromises all the EU countries plus Iceland, Liechtenstein, Norway and Switzerland). If you want to know more about opening a company in Finland, contact us or read on.

What is the most common type of company in Finland?

The two most popular forms of business entity in Finland are:

• public limited company - osakeyhtiö Oyj
• private limited company – osakeyhtiö Oy

How much share capital is required to establish a public limited company (Oyj)?

• The minimum share capital for a public limited company is €80,000.

What other requirements are there for a public limited company?

• a minimum of three board directors plus a chief executive.
• it is usual to be listed in the Helsinki Stock Exchange.
• there is a statutory requirement for audited accounts.
• flat corporate tax rate of 26%.

How much share capital is required to establish a private limited company (Oy)?

• The minimum share capital for a private limited company is €8,000.

What other requirements are there for a private limited company?

• at least one board director and a deputy.
• there is a statutory requirement for audited accounts.
• a local serviced office is advisable.
• flat corporate tax rate of 26%.

What other types of company are there?

• general or limited partnership.
• small private company, usually sole trader.
• branch of a foreign company.

How easy is it to recruit staff?

Finland has one of the most advanced education systems in the world, and the workforce is highly skilled. Despite an unemployment rate of around 9%, there are recruitment difficulties in certain sectors such as telecommunications and IT. It is worth noting that there are important labor regulations regarding employment contracts and so professional advice will be needed. Please contact us for this. We can also help you with general recruitment issues.

What is the regulatory environment like?

Although the business environment in Finland is liberal and investor-friendly, the regulatory environment is strict and any breach of the legal or tax code is taken very seriously. For this reason it is particularly important to seek expert advice from the outset. To learn more about our local team of legal and financial specialists in Finland, please contact us.