Starting a business as a foreigner in Finland is relatively straightforward compared to other Nordic jurisdictions, although it does require some time investment. Engaging local assistance is crucial to expedite the process of company establishment and ensure all necessary registrations are completed post incorporation. In this article, we will guide you through the key considerations in setting up a business in Finland.
Before starting a business in Finland
Before establishing your LLC (Oy or AB) in Finland, it’s important to address key tasks such as forming the board of directors, opening a corporate bank account, registering a business address, and preparing and filing the required incorporation documents. These steps are essential to ensure a smooth and compliant setup of your business entity in Finland.
Let us guide you through the preparation aspects one by one.
Share capital and shareholders
When setting up a limited liability company (LLC) in Finland, you have the option to start the company with a share capital of 0 EUR. This means you are not required to contribute any initial funds to establish the company, which simplifies the process of formation. As a shareholder of the LLC, you have the authority to appoint and dismiss directors of the company in Finland. Directors are responsible for managing the day-to-day operations and strategic decisions of the business. The ultimate decision-making power within the company lies with the shareholder(s) and the Annual General Meeting of Shareholders (AGM). As a shareholder, you have the right to participate in the AGM, where important decisions about the business, such as appointing directors, approving financial statements, and distributing profits, are made.
Directors
To set up a business in Finland you need to appoint at least one director and member of the board. If there are less than three directors, a deputy director must be appointed. This means that your company in Finland must have at least two directors. Directors can be of any nationality and reside anywhere in the world but at least half of the board must reside in an EEA country. Nominee directors are not permitted. Managing director/CEO is optional but must be an EEA resident. Nordic GEM can provide experienced directors resident in Finland or EEA.
Registered office address
To start a business in Finland, and file in your documents with the Finnish Trade register (Kaupparekisteri) it is mandatory to have a legal address for your LLC. Nordic GEM can provide you with a registered office address at our reputable business premises enabling you to receive and manage official correspondence efficiently, enhancing your company’s professional image and compliance with regulations.
Company formation
When it comes to company formation Nordic GEM is happy to assist with drafting and submitting the company registration application, corresponding with the Finnish registry and guiding you through the whole process. Before the registration is complete the share capital needs to be paid into a corporate bank account, unless you choose to register with 0 share capital.
Bank account
This takes us to the next step in the company registration — opening a corporate bank account.
Setting up a bank account with a traditional Finnish bank can be a complicated process. If your company has problems with this, you can choose to register the LLC with a 0 share capital. After registration, Nordic GEM can assist you with opening a corporate account with a challenger bank such as Revolut or Wise.
After the company registration
When your business in Finland is set up and running, there are still several aspects you need to take into consideration, such as accounting and payroll management.
Accounting
Ongoing accounting and annual filing of financial statements are mandatory for doing business in Finland. Providing these services from outside Finland is not practical and can be very challenging indeed. Nordic GEM can handle your accounting for you, ensuring compliance with local laws and regulations.
Payroll
Payroll management involves administering and processing payments to employees in compliance with applicable laws and regulations, including tax deductions and social contributions. If starting your business in Finland presupposes hiring a team, you can count on Nordic GEM to help you with the payroll.
Your partner for compliant company formation in Finland
Contact Nordic GEM to discover how we can assist your company through the whole process of starting a business in Finland, making your company establishment possible.
