Company registration in Finland - COREDO

Company registration in Finland

Finland is situated in Northern Europe along the Baltic Sea coast. Since 1995, the country has been a member of the European Union, with the euro becoming its official currency in 2002. Over recent decades, Finland has regularly ranked among the happiest, most stable, and most prosperous nations globally.

As one of the highly developed industrial countries, Finland stands as a leader in terms of GDP per capita. The nation’s economy is anchored by key sectors such as forestry, telecommunications, metallurgy, energy, electronics, and pulp processing. Additionally, recent years have witnessed significant growth in the electrical engineering and IT sectors, biotechnology, and tourism. While Finland welcomes foreign investment, there are certain nuances to consider when starting a business as a non-resident.

ADVANTAGES OF REGISTERING A COMPANY IN FINLAND

In addition to its advantageous geographical location, which facilitates access to the markets of Northern and Central Europe, Finland offers other advantages, including:

  • economic and political stability;
  • transparency and clarity of local legislation;
  • low inflation;
  • high level of stability in the business environment;
  • well-developed infrastructure;
  • relatively low taxes for businesses (profit tax is only 20%, with no property tax);
  • low level of corruption;
  • ease of registration and conducting business operations.

AVAILABLE TYPES OF BUSINESS ORGANISATION IN FINLAND

To register a company in Finland, you can choose from the following organisational and legal forms:

  • Tmi, toiminimi — an individual enterprise. Non-residents intending to register as private entrepreneurs in Finland must obtain a work permit and a residence permit. This form is suitable for small businesses.
  • Oy, osakeyhtiö — a joint stock company. Can be established by a single shareholder; the minimum authorised capital size is not regulated.
  • Ay, avoin yhtiö — open partnership, Ky, kommandiittiyhtiö – limited partnership. Establishment requires a minimum of two partners; no minimum authorised capital is required.
  • Osk, osuuskunta — cooperative. A minimum of three founders (individuals or legal entities) is required for registration. This structure is often favoured by companies in the social sector.

FEATURES OF COMPANY REGISTRATION IN FINLAND

It is important to note that to register a company with 100% foreign capital and engage in any commercial activities within this jurisdiction, non-residents must obtain permission from the Ministry of Trade and Industry. Alternatively, it is permissible to establish foreign enterprises in which at least one of the founders is a citizen of any European Union country.

Registering a company in Finland is relatively straightforward. Initially, you need to provide documents verifying the personal data of the business founders and decide on the name and legal structure of the company. A local notary must authenticate all documents before submission. Additionally, a local bank account is required. Both residents and foreigners can complete the company registration process in just one business day, provided all documents are collected and prepared accordingly.

To ensure a smooth and efficient company registration process in Finland with minimal complications, we recommend enlisting the assistance of COREDO specialists, who have extensive experience and a comprehensive understanding of the jurisdiction’s intricacies.

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