Finland’s economic stability and high-tech industrial base has made it a key target for international investors. Anyone can set up business 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). Please contact us or read on for further information about establishing a company in Finland.
Company Formation FAQs
What is the most common type of company formation in Finland?
The two most popular forms of company to be incorporated in Finland are as follows:
- Public Limited Company – Osakeyhtiö (Oyj)
- Private Limited Company – Osakeyhtiö (Oy)
We are Finland incorporation experts, to speak to one of our specialists click here.
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.
Are there other requirements 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
- The Corporate Tax rate is 26%
How much share capital is required to establish a Private Limited Company (Oy)?
The minimum share capital for a private limited company is €2,500.
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 if the company has a turnover of more than €200,000, a balance sheet total of more than €100,000, and 3 or more employees
- Flat Corporate Tax rate of 26%
- A local serviced office is advisable. Click here for details
What other types of company are there in Finland?
- 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. The unemployment rate is currently less than 7%, but recruitment is becoming challenging in virtually every sector.
It is worth noting that there are important labour regulations regarding employment contracts and so professional advice will be needed to successfully negotiate these. We can also help you with general recruitment issues so please don’t hesitate to contact us.
What is the regulatory environment like?
Although the business environment in Finland is liberal and friendly to investors, for those establishing a company in Finland, 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 Finnish incorporation specialists, please contact us.