Register company in Finland
The process to register company in Finland is hassle-free if you know how to go about it. Tetra Consultants can assist you with Finnish company registration so that you can focus your time and energy on your business.
Finland has a welcoming environment to foreign investors. Finland is an advanced industrial economy with a thriving private sector and a business environment that is highly conducive to foreign investors.
You can depend on our team of experts to provide you with a smooth experience in setting up your new company with the Registrar of companies. We will ensure that your firm will be operational within the required time frame.
Our service package includes:
- Finland company registration with the Finnish Trade Register
- Company secretary and registered local address
- Accounting and tax obligations
What are the benefits of registering a company in Finland?
The main benefits of registering a Finnish company are:
- Only One Shareholder: The minimum requirement to incorporate in Finland is one shareholder.
- Low Minimum Share Capital: The minimum paid-up share capital is €2,500.
- No need to Visit Finland: Foreigners do not have to visit Finland in order to form a new Finnish corporation. Tetra Consultants assist clients with no travelling requirements to register company in Finland.
- English widely Spoken: Many Finnish speak good English, especially in the business sector.
- Euro: Finland is the only Nordic country using the Euro as its currency.
- EU Membership: Finland is a member of the European Union (EU) which opens doors for doing business with other EU members.
- Low Corporate Tax: The corporate tax rate is a flat 20% which is at the low end for EU and global countries.
- Political and Economic Stability: Finland has maintained a stable political system for many years along with a stable economy.
- Northern Europe Opportunities: Historically, Finland’s trade connections in Northern Europe as well as its friendly ties to countries surrounding it opens up ample opportunities for foreign investors to also benefit from these relationships.
- Skilled Workforce: Finland has a well-educated population offering a skilled workforce.
- Ideal Country for a Tech Company: Tech companies in Finland can obtain low-interest loans of up to €1,000,000 from the Finnish Funding Agency for Technology and Innovation. Research and Development (R&D) employees paid between €15,000 to €400,000 annually can get the employer a 200% tax deduction of their salaries.
- Dividends tax exemption: Dividends paid to EU holding companies from their Finnish subsidiaries are tax-exempt.
Can a foreigner register company in Finland?
- There are no general restrictions on foreign investment. However, under the Act on the Monitoring of Foreign Corporate Acquisitions in Finland (Foreign Corporate Acquisitions Act), the Finnish Ministry of Economic Affairs and Employment monitors foreign corporate acquisitions and can restrict them, if key national interests so require. In this context, key national interests mainly concern:
- National defense.
- Security of supply.
- Functions are fundamental to society.
- Even in these cases, the Ministry must approve the corporate acquisition unless it potentially conflicts with a key national interest. If the corporate acquisition may conflict with a key national interest, the Ministry must refer the matter for consideration at a government plenary session
- A positive attitude to foreign ownership is the guiding principle of the Foreign Corporate Acquisitions Act. However, the Finnish authorities can exercise control over the ownership of companies considered essential in terms of security of supply and national security and, if necessary, restrict foreign ownership in such companies.
How much time does it take to register company in Finland and open a corporate bank account?
- Tetra Consultants will complete the process to register the company in Finland within 4 weeks. After receiving the due diligence documents of the directors and shareholders, our team will search for the availability of your preferred company name and prepare all required incorporation documents.
- Throughout the process to register a company in Finland, you will not be required to travel overseas.
- After Tetra Consultants has set up your Finnish company, you can expect to receive the documents of your new company including the certificate of formation, Memorandum, and Articles of Association as well as a register of directors and shareholders.
- Within 4 weeks upon registering your Finland company, we will open a corporate bank account with a local or Internationally reputable bank.
- As such, you can expect your company to be fully operational and ready for business within 8 weeks of engaging Tetra Consultants. See this webpage for a step-by-step guide on how to register company in Finland.
Types of business entities to consider when you register company in Finland
There are different business models available in Finland, such as:
- The simplest and most popular way to start in business is to operate as a private entrepreneur using a company name. Decision-making and responsibility in the company belong to the entrepreneur, and the company may employ workers as in other forms of business. For part-time entrepreneurship, it is often beneficial to start as a proprietorship. Starting a business in this way is speedy and uncomplicated.
- A private entrepreneur-style business is the most straightforward method to establish your business in Finland. It permits you to obtain an ID for your company and bill customers without a lot of expense or effort. They are simple to operate and require minimal documentation compared with other businesses. Among various types of companies in Finland, it is ideal for small-sized companies that do not need a lot of traveling, investment, or even multiple employees.
Limited company (osakeyhtiö)
- A limited company is the most common company form in Finland. A limited company is suitable for all kinds of business operations. You can start a limited company alone or with other shareholders. A shareholder’s voting power, profit, and liability depend on how many shares they own.
- Features of Limited liability company:
- The minimum share capital requirement has been abolished
- A person is sufficient to start a company in Finland;
- The management board provides the management;
- It must be recorded in the Trade Register before beginning an activity.
Partnership (avoin yhtiö)
- A partnership is formed when two or more individuals agree to it by signing a partnership agreement. The partners have equal status in all the company’s operations and are personally responsible for company decisions, liabilities, and debts.
- This company structure benefits those entrepreneurs who do not have a minimum required capital, and the partners are all equal throughout the business’s activities. The major drawback is that every partner is responsible individually and indefinitely for all obligations to the company, decisions, and liabilities
Limited partnership (kommandiittiyhtiö)
- A limited partnership differs from an ordinary partnership in that in addition to one or more accountable partners there is at least one sleeping partner, i.e. a participant in the company who generally acts as an investor.
Cooperative association (osuuskunta)
- A cooperative association is a company owned by its members. There can be one or several members. Each member has one vote in cooperative association meetings. The liability of the members for the cooperative association’s obligations (for example, debts) is limited to their investment of share capital.
- The Board of Directors, selected by co-operative members, establishes the rules and guidelines. A General Meeting/Board of Representatives manages the administrative tasks. The co-operative form of the company can also hire an accountant to take charge of members’ finances. Among various types of companies in Finland, this business structure has more than five thousand diverse industries.
Public Limited Company in Finland (julkinen osakeyhtiö-Oyj)
- It is founded after registration in the Trade Register. It must have a share capital of €80.000 (cash or property). The company must have at least one shareholder. If the company has a share capital above €80.000, the management board must have more than three members (more than 50% of them must be EEA residents) and a managing director.
- An Oyj company structure must also provide semi-annual reports and be listed on the Helsinki Stock Exchange. The essential difference between a Limited and a Public company is that only the Public Limited Company can trade or transfer the shares. They are governed by the Companies Act.
Ltd company (o sakeyhtio)
- The limited-company structure is a great option to organize your business if you intend to invest large amounts of money, are planning to employ staff, or expect to make a high profit. It is also a great option to limit the risk and cut down on the tax burden. Having a limited company can pay dividends to shareholders and yourself with a lower tax rate than the income tax. You can establish the limited type of companies in Finland by yourself or others.
Branch of a Foreign Company in Finland (sivuliike)
- It is a society that operates in Finland even though it has its headquarters in another country. The branch’s representative must have a Finnish domicile, and if it is not an EEA member, special permission must be granted by the National Board of Patents and Registration (NBPR).
How to register company in Finland?
- Tetra Consultants advises you to read through this guide to fully understand the steps required on how to incorporate a company and set up a bank account in Finland.
- By systematically following the 6 steps below, you can expect to start conducting business with your Finland company within 8 weeks.
Step 1: Choosing a suitable corporate entity
- After understanding your business goals and activities, our team of dedicated consultants will recommend the most suitable corporate entity for you to carry out your business. Prior to incorporating a Finnish company, you will be advised on the optimum paid-up share capital, corporate structure, legislation, and whether there is a need to apply for any licenses to operate your business.
Step 2: Reservation of company name
- Tetra Consultants will perform a prior name search and reserve your preferred company name with the Finnish Trade Register at Finnish Patent and registration office.
Step 3: Preparation of supporting documents to register company in Finland
- In most cases, the directors and shareholders are required to provide basic KYC documents. Some of these documents include the names of directors, certified true passport copies, proof of address, bank reference letter, and CV for our internal due diligence checks.
- Our team will also advise and assist clients who are looking to incorporate in Finland by renting local offices and appointing a company secretary. The registered office will be used to maintain all corporate records and official documents whilst the Company secretary will primarily assist in liaising with external parties.
- In case any of the prospective directors is not an EU resident, Tetra Consultants will file an application for a permit to be taken with the respective authority.
- According to the business activity and corporate structure, Tetra Consultants will also draft Articles of Association, business plan, and other incorporation documents.
- Your Articles of Association drafted will include key information about your company and its directors, the amount of subscribed share capital, share classes, duration of the company, and other information with regard to your business activities.
Generally, the Articles of Association will have to be translated into Finnish and Swedish. We will assist in providing official translations of the necessary incorporation documents.
Step 4: Filing to register company in Finland
- We will then proceed to file Articles of association for approval with the Trade Register.
- After receiving approval, Tetra Consultants will move for the final registration of the company by filing the Y1 incorporation forms given at Finnish Patent and registration portal.
- Once the registration is completed and final approval is received, Tetra Consultants will courier the Certificate of Incorporation, Memorandum and Articles of Association, and other corporate documents to your preferred address.
- According to your business activities, we will also assist in acquiring a valid business permit where necessary.
Step 5: Corporate bank account opening
- After registration, Tetra Consultants will assist you to open a corporate bank account. Our team has established partnerships with multiple reputable banks in Finland. We will present your business to each relationship manager and compliance team.
- Typically, a corporate bank account opening will take roughly four weeks. In most cases, the directors and shareholders are not required to travel. However, if travel is required, we will have a representative accompany you to the bank meeting. Alternatively, our team will negotiate with the banks to conduct a conference call instead or request a waiver.
- The meeting may be conducted in Finnish. In such cases, our team will also send a representative to attend the meeting so that any potential communication barrier can be overcome.
- Once your account has been successfully opened, Tetra Consultants will courier the internet banking token and access codes to your preferred address.
- Some of the international reputable banks we work with include Nordea Bank, Danske Bank, and BNP Paribas Fortis. By engaging our services, you can leverage our full portfolio of banking partners.
Step 6: Financial reporting and taxation obligations
- Following the setup of your new Finnish corporate home, Tetra Consultants will continue to provide you with the necessary accounting and tax services to ensure that you can continue to legally conduct business while staying compliant to regulatory obligations.
- Our team will also follow up in registering with the Finland Tax administration authority to comply with your tax obligations.
- Our team of dedicated consultants will timely prepare your firm’s financial statements, and corporate tax returns and manage bookkeeping on your behalf.
- Generally, corporate income tax is charged at 20%. Other applicable taxes include property tax, business tax, and Value Added Tax.
Our team of dedicated consultants will continue to clarify any doubts you may have with regard to your company’s obligations.
What are the minimum regulatory requirements to register company in Finland?
- Minimum Capital Requirements For a private limited company, there are no capital requirements. However, for a Finnish public limited company, the minimum capital requirements are EUR 80,000. An applicant for company formation in Finland has to satisfy the minimum capital requirements of the company.
- Minimum Directors There has to be one director and one deputy director for forming the company in Finland. If there are two directors, then the board must appoint a deputy director to carry out the requirements of the company. A director must be a natural person, above the age of 18 years and should not be liable for any criminal offenses. The director must also not be declared bankrupt or adjudged an insolvent. At least one member or director must be a resident of the European Economic Area (EEA). This would usually be the case unless they are granted an exemption from the Finnish Trade Registry.
- Minimum Shareholders A minimum of one shareholder is required for the process of company formation in Finland.
What are the documents required to register company in Finland?
The following documents are required for company formation in Finland:
- Board Minutes of the Company taking the decision for incorporating a company in Finland
- Board Resolution for opening the corporate bank account in Finland
- Memorandum of Association that provides details of the original shares which are subscribed by the members of the company
Articles of Association of the Company
- Notification from the Finnish Trade Registry
- Fee Receipt for Finnish Trade Registry- EUR 380 for the physical process and EUR 270 for the online process.
- Confirmation from the auditor regarding the payment of share capital. If there is no auditor in the company, then a receipt for confirmation of the payment of share capital must be provided.
Tax and accounting obligations
- Accounting and tax considerations are important factors when incorporating your company. By outsourcing your Finland accounting and tax obligations to Tetra Consultants, you can be confident that you will be in the best hands. Our team of consultants will ensure that your firm’s financial statements, corporate tax returns, and audits are timely and completed without the need for you to travel.
- Additionally, outsourcing your accounting and tax needs to Tetra Consultants will allow you to reduce overhead costs while be ensured of timely reporting and filings. Before the start of the engagement, our accounting team will also keep you updated on all the required deadlines and expectations. Thereafter, we will prepare all required filings in advance to ensure that the stipulated deadlines are met.
- For limited companies, the corporate income tax is 20% and it is uniform for all types of corporate income, including sales profits, interest income, dividends, royalties, and rental income.
Value-added tax (VAT)
- The basic VAT rate in Finland is 24%. The reduced VAT rate is 14% for the supply of foodstuffs, animal feed, and restaurant and catering services. 10% reduced rate is applied for example to the supply of books, pharmaceutical products, passenger transportation, accommodation, the subscriptions of newspapers, and periodicals.
Personal Income tax
- In Finland Taxation of an individual’s income is progressive. In other words, the higher the income, the higher the tax rate. In 2019, the income tax rate (national tax) for an individual is between 0 % and 31.25 %. In addition to the national tax, individuals also pay a municipal tax of around 20 %.
- In Finland only publicly traded companies are required to comply with IFRS Standards. All other companies, partnerships, sole traders or professionals can adopt the local Finnish Accounting System.
- Provisions on accounting are laid down in the Accounting Act and Accounting Decree. The Legislation providing general provisions and guidelines for accounting is the Accounting Act and Accounting Decree.
- The financial year in Finland is generally a calendar year or another twelve-month period. In the year of commencement, the financial year can be less or more than 12 months. However, the maximum length of the financial year is 18 months. The Financial Statements must be prepared within four months of the end of the financial year and submitted to the Trade Register (PRH) and Tax authorities.
- The financial statements should consist of the following: The balance sheet disclosing the financial position at the balance sheet date; the profit and loss account disclosing how the profit or loss has arisen; the cash flow statement and its application if the reporting entity is a large enterprise or a public-interest entity; and notes to the balance sheet, the profit and loss account, and the cash flow statement.
- The financial statements are required to be maintained for at least 10 years from the end of the financial period as per the Accounting Act. Other accounting materials such as invoices, vouchers, reconciliation reports, accounts receivable, and human resource documents are to be maintained for 6 years from the end of the financial year.
Why register company in Finland?
- Like in other Nordic countries, the Finnish political system is regarded as a model of transparency and efficiency. The country is ruled by the Social Democratic Party (SDP) in a coalition between the center and the greens and the next elections are planned for 2023.
- The government has aided businesses and invested in the economy in order to help the economy stay healthy during the pandemic. Even though GDP has decreased, and a number of businesses have inevitably been struggling in this exceptional situation like the spread of covid, the government has been able to place Finland among those countries that have suffered the least amount of damage to their economy due to the pandemic.
- Finland was ranked 20th in the World Bank’s 2020 Doing Business ranking. While good overall, this position is that of the other Nordic countries. The main areas of improvement are access to credit and the protection of minority investors. However, the country tops the list when it comes to resolving insolvencies.
- Moreover, it is worth mentioning Finland’s inclination towards innovation, as seen in the advancement of its digital infrastructure, a characteristic common to Nordic countries. As a result, the Finnish business climate is very international and attractive to foreign investment, offering growth potential and business opportunities across different industries.
- The country has been ranked as a Leader in the number of FDI projects in the Nordic countries EY Nordic Attractiveness Survey 2019.
- Finland offers a business environment with uniquely high levels of stability, continuity, and predictability. The pillars of Finland’s peaceful and well-functioning society include transparent government and effective state institutions, an independent judicial system, and respect for the rule of law.
- The country has been ranked as the No. 1 Business Environment in the World, Global Innovation Index 2022, and the Most Stable Country in the World for the ninth year in a row by Fund for Peace, Fragile States Index 2022.
- Finnish licensing and certification requirements differ from those in other European countries. For this reason, it makes sense to take advantage of advisory services to meet domestic legal and regulatory requirements on site. This enables a smooth entry into the Finnish market.
- For many, the Finnish language could also be a real challenge. However, Finland is a very international country, where one can also fare well with English, Swedish, or even German and Russian.
- The country has been regarded as Happiest Country in the World for the 5th year in a row by the World Happiness Report 2022.
- From the global perspective, Finland is also one of the most digitized countries in the world, and it has a highly industrialized, knowledge-based economy that is open to globalization and investment. Finland ranked first place in the 2021 DESI (“The Digital Economy and Society Index” – DESI) comparison of digitalization.
- Finland excels in digital public services and the integration of digital technologies. The country’s high competence level is one of Finland’s strongest competitive advantages: 76 percent of the population have at least basic digital skills, which is a long way above the EU average (57 percent).
- The country has been ranked as the 3rd Most Innovative Country in the World Innovation Champion, by the Consumer Technology Association 2019 and 2nd Most Skilled Workforce in the World, World Economic Forum, by the Global Competitiveness Report 2019.
- Finland has adopted a comprehensive regulatory framework on environmental issues. Although mostly regulated through national legislation, a large part of Finnish environmental legislation is from EU law either as directly applicable law or through the implementation of EU law.
- According to the EPI index in the year 2022 (Environmental Performance Index) prepared by Yale and Columbia Universities, Finland is the 3rd most cleanest and greenest country.
Looking to register company in Finland?
Contact us to find out more about how to register a company in Finland. Our team of experts will revert within the next 24 hours.
What are the minimum requirements for company formation in Finland?
- There are no minimum requirements for company formation in Finland. Compliance with the relevant Finish Corporate Law is required for Company registration in Finland.
Which is the most utilized foreign entity for Finnish company formation?
- A Finnish Limited liability company is usually utilized for company formation.
Is there any form of foreign investment restrictions in Finland?
- There is no form of foreign investment restrictions in Finland. However, as per the Finnish Ministry of Economic Affairs, if there are any acquisitions or investments pertaining to the national interest, then such restrictions would be levied.
What is the minimum capital requirement for Finnish company registration?
- For a private limited company, there are no capital requirements. However, for a Finnish public limited company, the minimum capital requirements are EUR 80,000.
Does a director have to be a resident in Finland?
- A director can be a resident in Finland to carry out the responsibilities. However, Finnish companies also accept directors who are residents of the European Economic Area (EEA). There can be an exemption related to this if the trade register grants the same.
Are there any sector regulations in Finland?
- Yes, there are specific sector regulations in Finland. For example, there is a monopoly related to gambling. This would be present in areas related to the retail trade. The financial services sector such as insurance and banking would require relevant consent from the regulator.
How much does it cost to register company in Finland?
- Finnish company incorporation costs ultimately depend on the services you require from Tetra Consultants.
- Our services include Finnish company set up, corporate bank account opening, accounting, and tax services as well as provision of nominee directors (if required) and shareholders.
- Tetra Consultants strives to be as transparent about our fees as possible and all engagement fees will be clearly stated in our appointment letter prior to the start of the engagement.