How to Start a Business in Finland: A Complete Guide
Starting a business in Finland is a straightforward process, provided you understand the necessary steps. This guide covers everything from registering your business, obtaining loans, legal requirements, and accounting needs to help you establish a successful enterprise in Finland.
1. Choosing a Business Structure
In Finland, you can choose from various business structures based on your needs:
Sole Proprietorship (Toiminimi, Tmi): Suitable for small businesses or freelancers. Registration is simple and costs less.
Limited Liability Company (Osakeyhtiö, Oy): Ideal for larger businesses requiring more capital. Owners have limited liability.
General Partnership (Avoin yhtiö, Ay): Requires at least two partners who share responsibility.
Limited Partnership (Kommandiittiyhtiö, Ky): Includes both general and silent partners.
Cooperative (Osuuskunta): A business owned and operated by its members.
For more details, visit the Finnish Patent and Registration Office (PRH): www.prh.fi
2. Business Registration Process
To register your business, follow these steps:
Choose a business name and check its availability on the PRH website.
Register your business via the Business Information System (YTJ): www.ytj.fi
Apply for a Business ID from the Tax Administration.
Register for VAT (Value Added Tax) if your annual turnover exceeds €15,000.
If hiring employees, register with The Employer Register.
3. Applying for a Business Loan
If you need funding, Finland offers multiple loan options for new entrepreneurs:
Finnvera: State-owned financing company providing startup loans. www.finnvera.fi
Banks: OP, Nordea, Danske Bank, and others offer business loans.
Business Finland: Grants and support for innovative businesses. www.businessfinland.fi
Private Investors & Angel Investors: Look for venture capital firms or startup incubators.
4. Accounting and Taxation
Proper bookkeeping is essential. You can either handle it yourself or hire an accountant.
Mandatory Registrations:
Value Added Tax (VAT) Register
Prepayment Register (if paying taxes in advance)
Employer Register (if hiring employees)
Corporate Tax Rate: 20% for limited liability companies.
Personal Income Tax: Applies to Tmi owners based on earnings.
More info: Finnish Tax Administration www.vero.fi
5. Legal Documents and Compliance
Ensure you have the following documents:
Business Registration Certificate
Articles of Association (for Oy companies)
Partnership Agreement (if applicable)
Employment Contracts (if hiring staff)
Insurance (Mandatory for employers)
6. Business Support and Networking
Starting a business can be challenging, but various organizations offer support:
NewCo Helsinki: Free business advisory services. www.newcohelsinki.fi
ELY Centers: Training and financial aid for entrepreneurs. www.ely-keskus.fi
Chambers of Commerce: Networking and legal support.
7. Setting Up a Business Bank Account
Opening a separate business account is essential for tracking finances. Major banks offering business accounts include:
Nordea: www.nordea.fi
OP Bank: www.op.fi
Danske Bank: www.danskebank.fi
8. Hiring Employees & Payroll System
If you plan to hire staff, follow these steps:
Register as an employer with the Tax Administration.
Arrange for occupational health insurance.
Set up a pension plan through an authorized pension provider.
Use a payroll software or outsource payroll to an accounting firm.
Final Tips for a Successful Start
Understand Finnish business culture – Trust and transparency are crucial.
Use digital tools – Most business operations, including tax filings, are online.
Get professional advice – Consult legal and financial advisors to avoid costly mistakes.
By following these steps, you can successfully establish and run your business in Finland. Best of luck with your entrepreneurial journey!