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
Finland has a fairly straightforward business registration process that involves determining the business structure, business name, submission of necessary registration documents, registration for tax numbers and application for the necessary permits and licenses.
The documents needed for a business registration vary for the different business structures but the most commonly requested documents include Proof of Identity, Business Plan, Certificate of Residence, Articles of Association and Business Structure. Others include Declaration of Conformity, Declaration of Partnership, List of Shareholders, etc
The business registration process costs €500 for both limited partnerships and limited liability companies and €200 for a sole proprietorship. Other accruable fees include license & permit fees, notary fees, publication fees, etc
The entire business registration timeframe typically takes between six to eight weeks to be completed.
Yes, it is necessary to have a physical office address before business operations can commence.
Yes, Foreigners can register a business in Finland after receiving their work permits or residence permits.