Finland’s stability, transparency, and efficient institutions make it an attractive place to start a business. For foreign entrepreneurs, understanding local procedures and company structures is essential. This article outlines the key steps for starting and running a business in Finland, from registration to ongoing compliance.
Preparing to start a business in Finland
Before your company can begin operating, there are initial decisions and registrations that need to be made.
Choosing a legal form
Selecting the right company structure is one of the first and most important steps. In Finland, the main types of businesses that are generally recommended and available to non-residents include:
- Limited liability company (osakeyhtiö or Oy): The most common and flexible structure, with no minimum share capital required as of 2019. It offers limited liability and is suitable for both small and growing businesses. An Oy must have at least one board member and one deputy board member resident in the EEA.
- Branch (Sivuliike): A Finnish branch of a foreign enterprise. While not a separate legal entity, it must be registered and have a representative residing in the EEA
- Limited partnership (Kommandiittiyhtiö, Ky): Combines active (general) and passive (limited) partners. Suitable for investment models or small-scale collaborative ventures.
Registering a company name
Once you’ve selected a legal form, you will also need to choose and register a company name. The name must meet the requirements set by the Finnish Trade Register. It must be clearly distinguishable from existing company names, not misleading or inappropriate, and it should include the appropriate suffix that reflects the legal form (such as Oy for a limited liability company). Name availability can be checked before submitting your application, and the registration is handled by the Finnish Patent and Registration Office (PRH).
Setting up your company in Finland
Once the necessary preparations are completed, you can begin the process of establishing your company to get up running.
Company registration
To register your business in Finland, you must submit the necessary information and documentation to the Finnish Trade Register, which is maintained by the Finnish Patent and Registration Office (PRH).
The full registration process typically includes:
- Providing details such as the company’s name, legal form, address, and line of business
- Submitting the memorandum and Articles of Association (for limited liability companies)
- Appointing board members and identifying authorised representatives
- Paying the applicable registration fee
Once registration is complete, your company will receive a Business ID (Y-tunnus), which is used in all interactions with Finnish authorities and official systems.
Opening a business bank account
Opening a Finnish business account is needed to manage company finances and, for limited companies, to deposit the required share capital. Banks generally ask for proof of registration, identification of owners or directors, and basic documentation about the business. Requirements may differ between banks.
Registering with the Finnish Tax Administration
Depending on your business activities, you may need to register with the Finnish Tax Administration (Verohallinto) for:
- VAT (required if your annual turnover exceeds €15,000)
- Prepayment of income tax based on expected profits
- Employer status if you plan to hire employees and handle payroll obligations
Trademark and brand protection
If your business operates under a distinctive name, logo or product, you may want to protect it by registering a trademark. In Finland, trademarks can be registered through the Finnish Patent and Registration Office. If you plan to operate in other EU countries, it may be worthwhile to register through the EU Intellectual Property Office (EUIPO). Trademark registration helps secure your rights and avoid conflicts with other brands.
Running your business in Finland
After your business is established, you are responsible for meeting ongoing obligations required by Finnish legislation. These include:
Accounting and bookkeeping
All businesses must maintain accurate financial records. Limited companies are required to prepare annual financial statements and, in some cases, submit them to the Trade Register.
Annual reporting
Limited liability companies must file reports that meet Finnish accounting standards. Reporting obligations depend on the size and type of the company.
Tax filing and VAT returns
Businesses must submit tax declarations regularly, including VAT and income tax reports. These are handled through MyTax.
Employment obligations
If you hire employees, you are responsible for contracts, payroll, pensions and other statutory employer contributions. Finnish labour law also requires compliance with collective agreements in many sectors.
Updating company information
Any changes to company structure, address, or board members must be reported to the authorities without delay.
A trusted partner for your business in Finland
Launching a company in a new country requires careful planning and local insight. Nordic GEM supports businesses with the knowledge and experience needed to navigate the Finnish market. Whether you are just getting started or scaling up, we are here to help. Contact us to learn how we can assist with establishing and managing your business in Finland and the rest of the Nordics.
