Setting up a business by help of Invest in Finland
Setting up a business

International companies are warmly welcomed and enjoy high return on investment in Finland. They can access same benefits as Finnish companies. Setting up a business in Finland is quick and easy. Opening a legal entity takes only a couple of weeks.

4 quick steps to set up a business in Finland


1.    Select a name for your company. To gain exclusive rights to the name, you should submit it to the Trade Register which is maintained by the Finnish Patent and Registration Office (PRH).

2.    Open a bank account for your business. The company requires a bank account to pay share capital, process payment transactions and support accounting.

3.    File a start of the business notification. Establishing and registering a business requires that a notification be filed with the Trade Register and various Tax Administration registers. This can be done easily using a single form (“Y form”).

4.    Take advantage of online tools. You can establish a limited liability company online through the Business Information System online service. You can also create a workspace at My Enterprise Finland. The My Enterprise Finland service gives you access to a wealth of useful services. These online services require you to log in with your online banking credentials.

 

Online tools

 

You can establish a limited liability company online through the BIS online service (ytj.fi).You can also create a workspace at My Enterprise Finland. The My Enterprise Finland service gives you access to a wealth of useful services. These online services require you to log in with your online banking credentials.


Types of business

 

In Finland, foreign companies most commonly conduct business through private or public limited liability companies, or through a Finnish branch office. Business can also be conducted through general or limited partnerships or co-operatives. A foreign organization or foundation can also establish a branch in Finland.


Setting up a limited company 

 

A limited company can be established by one or more natural or legal persons (founders). At least one of the founders shall be a permanently resident or, if the founder is a legal person, have their domicile in the European Economic Area – unless the National Board of Patents and Registration grants an exemption from this rule. The nationality of the founder is thus irrelevant. A legal person shall have their domicile in the European Economic Area when it has been established in accordance with the laws of a State which belongs to the European Economic Area and when its registered office, central administration, or head office is in a State belonging to the European Economic Area. A person who is legally incompetent or declared bankrupt may not act as founder.

 

If a permit is required, the application is to be submitted to the National Board of Patents and Registrations either in Finnish or in Swedish. An application fee (EUR 120) is paid for each permit decision.

 

A private limited company shall have a minimum share capital of EUR 2,500 and a public limited company requires EUR 80,000. The share capital must be paid to the company’s account in full before the company can be entered in the Trade Register which is maintained by the National Board of Patents and Registration.


New businesses submit the basic declaration to the Trade Register using the start-up notification form. This form can also be used for registration with the Tax Administration, registration of a VAT liable business, registration as an employer, and registration in the tax prepayment register.

 

Setting up a branch of a foreign trader 

 

A branch refers to a part of a foreign organization or foundation that conducts continuous business or professional activities in Finland from a permanent place of business in Finland in the name of and on behalf of a foreign organization or foundation.


The trade name of a branch of a foreign entrepreneur established in Finland shall contain the trade name of the foreign entrepreneur with an addition to the name which indicates that it is a branch – e.g. CDE Cargo Ltd., branch of Finland.

 

The application fee for a branch of a foreign trader is EUR 380. If the trader opening the branch is from a country outside the European Economic Area (EEA), they will also need a permit from the National Board of Patents and Registration for the establishment of a branch. This permit costs EUR 120.

 

Acquisition of a business

 

Foreigners may also acquire Finnish enterprises, their business operations, or become partners in an existing enterprise. The object of acquisition may be, for example, a private undertaking; shares in a general or limited partnership; the entire stock of a limited liability company; or a majority of the shares. You can become a member of an existing cooperative by paying the participation share.


All corporate acquisitions in the defense and dual-use goods sector are subject to approval by the public authorities – approval will be based on an application. In the civil sector, Finnish enterprises considered critical for securing vital functions within society and corporate acquisitions will also be subject to approval.


Regulated trades
 

There are also commercial activities in Finland that are subject to a license. These include the serving of alcohol, debt collection and security guard business. There are also commercial activities that require registration in a register that is kept by the authorities. This registration obligation covers such activities as the package travel agencies, real estate agencies and housing rental agencies. An entrepreneur submitting this kind of registration must meet the prerequisites laid out for registration in the law.


There are also commercial activities in which the authorities must be notified of the start of the activities. Under the law, restrictions and obligations may also be imposed on commercial activities for which a notification is required.
In most cases, an entrepreneur can start their operation before the authorities have considered the notification.


Looking for a reseller for your products?
 

If you are looking for a reseller or a business partner for your product or service, please contact industry associations and the chambers of commerce for further information.


The Enterprise Europe Network was established in 2008 by the European Commission. It provides free-of-charge internationalization services to SMEs and operates in over 50 countries.

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