November 3, 2024

How To Register a Business in Finland

Register a Business in Finland

Introduction

Register a business in Finland and enjoy a highly educated talent pool. The Republic of Finland (Suomen tasavalta) is a highly developed, economically competitive and highly educated Nordic country located in Northern Europe. Finland’s focus on innovation, exportation and well-developed legal frameworks has made it a desirable country for foreign investments. This is evident in Finland’s Gross Domestic Product (GDP) status as it ranks 60th in Purchasing Power Parity (PPP) with $321.2 Billion and 46th per Nominal GDP with $267.6 Billion.

Steps Required To Register a Business in Finland

Due to Finland’s highly educated population and well-developed legal and regulatory frameworks, Finland is regarded as a country with relative ease of doing business. Herein highlighted below, is a comprehensive step-by-step process for registering a company in Finland.

Business Structure

Deciding the business structure is the first step in registering a business in Finland. The most commonly registered business structures in Finland include Limited Liability Companies (Osakeyhtio, Oy), Partnerships (Avoin Yhtio, AY) and Limited Partnerships (Kommandiittiyhtio, Ky). Each business structure is designed to meet specific needs and is also governed by specific laws, hence, it is imperative to properly research the structure most applicable to the business to be registered. Information about the business structure can be found on the website of the Patent and Registration Office.

Business Name

Upon determining the desired business structure, it is then necessary to choose a business name. The chosen business name must be unique, conform to Finnish Laws and also be compliant with the design of the Finnish Language. The chosen name must be registered with the Finnish Trade Register website

Business Registration

The business registration process is done with the Finnish Patent and Registration Office (PRH) and requires the submission of all required documents. Oftentimes, a lawyer or accountant is advised to assist with this process due to the delicate nature of the documents and the Finnish laws. This process can either be done via the Finnish Patent and Registration Office mailing address (FI-00091 PRH, Finland) or online

Value Added Tax

Upon completion of the business registration process, the next step is the registration for a Value Added Tax (VAT) number. This is quite necessary especially if the business intends to trade or provide services in Finland and the process is done with the Tax Administration online

Tax Registration

All businesses registered in Finland are required by law to register with the Tax Administration. The tax registration process includes registration for Income tax, social security tax and other industry-applicable taxes. It can also be done online.

Business Licenses & Permits

Depending on the industry or services to be provided, the business is expected to register for permits and licenses such as restaurant permits, alcohol permits, business operation licenses, business licenses and industry-specific permits. Details on licenses and permits to apply for can be gotten in the Company section of the website of the Ministry of Economic Affairs and Employment of Finland.

Corporate Bank Account

Upon receipt of all permits and licenses, the business is expected to register for a corporate bank account in Finland. This is done with either a bank or a credit union in Finland and some include Citibank, Tavex, Aktia, Danske Bank, Nooa Saastopankki, etc.

Employee Registration

Businesses that intend to have employees in Finland are required to register with the Employment and Economic Development Office (TE-toimisto) for employee work permits and social security numbers. This is done online via the recruitment wizard portal of the Ministry of Economic Affairs and Employment of Finland.

Office Location

Upon completion of all processes, the business is expected to acquire a physical office in Finland before it can commence operations.

Documents Needed To Register a Business in Finland

The following are the documents needed to complete a business registration in Finland:

Proof of Identity (Passport Data page, Driver’s License)

Proof of Identity of all Directors

Certificate of Residence (Electricity Bill, Financial Statement)

Articles of Association

List of shareholders

Business Structure

Business Plan

Declaration of Conformity

Declaration of Partnership

Frequently Asked Questions