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Finland

Steps to Set Up a Company:

Finland

 

Choose a Business Structure

  1. Sole Trader (Toiminimi): Single owner, full liability.
  2. General Partnership (Avoin yhtiö - Ay): Two or more partners, shared liability.
  3. Limited Partnership (Kommandiittiyhtiö - Ky): General and limited partners.
  4. Limited Liability Company (Osakeyhtiö - Oy): Separate legal entity, limited liability.
  5. Public Limited Company (Julkinen osakeyhtiö - Oyj): Separate legal entity, limited liability, suitable for larger businesses.
  6. Cooperative (Osuuskunta): Owned and operated by its members.
  7. Branch: A branch of a foreign company operating in Finland.
  8. Representative Office: Limited to marketing and promotional activities, cannot conduct business transactions.

Register Your Company

  1. Choose a Company Name: Ensure it is unique and follows naming regulations.
  2. Prepare the Memorandum of Association and Articles of Association (for Oy and Oyj): Outlining the company’s structure and rules.
  3. Open a Bank Account: Deposit the initial capital required for the company type.
  4. Register with the Trade Register at the Finnish Patent and Registration Office (PRH): Submit the incorporation documents and pay the registration fee.
  5. Obtain a Business ID and VAT Number from the Finnish Tax Administration (Verohallinto): For tax purposes.

Open a Finnish Bank Account

  1. Set Up a Business Bank Account: Necessary for managing business finances.

Obtain Necessary Licenses and Permits

  1. Check Industry-Specific Requirements: Depending on the nature of your business, you may need specific licenses or permits.

Comply with Finnish Employment Laws

  1. Employment Contracts: Draft contracts that comply with Finnish labor laws.
  2. Register with the Finnish Tax Administration: For tax withholding and social security purposes.
  3. Register with the Employment Pension Insurance Company: For pension insurance.
  4. Health and Safety Regulations: Follow guidelines from the Occupational Safety and Health Administration (Työsuojelu).

Accounting and Reporting

  1. Set Up an Accounting System: Maintain accurate financial records.
  2. Annual Financial Statements: Prepare and file annual financial statements.
  3. File Annual Tax Returns: Submit annual tax returns to the Finnish Tax Administration.

 

Laws and Regulations to Consider

Corporate Law

  1. Limited Liability Companies Act: Governs the formation and operation of companies.
  2. Partnerships Act: Governs partnerships.

Tax Law

  1. Income Tax Act: Governs income tax for individuals and companies.
  2. Value Added Tax (VAT) Act: Governs VAT regulations.
  3. Payroll Tax Act: Governs withholding and payment of payroll taxes.

Employment Law

  1. Employment Contracts Act: Governs the terms and conditions of employment contracts.
  2. Working Hours Act: Governs working hours and overtime.
  3. Annual Holidays Act: Governs employee vacation entitlements.
  4. Occupational Health and Safety Act: Sets health and safety standards for workplaces.

Data Protection Law

  1. General Data Protection Regulation (GDPR): EU-wide regulation governing data protection and privacy.
  2. Data Protection Act: National implementation of GDPR.

Environmental Law

  1. Environmental Protection Act: Governs environmental protection and sustainability practices.

Intellectual Property Law

  1. Trade Marks Act: Governs the protection of trademarks.
  2. Patents Act: Governs the protection of patents.

By following these steps and adhering to the relevant laws and regulations, you can successfully establish and operate a company in Finland. It’s advisable to consult with legal and financial experts to ensure full compliance and smooth setup.

 

When to Consider Setting Up a Company in Finland:

  1. Strategic Geographic Location: Finland’s location provides access to markets in the Nordic region, Europe, and Russia.
  2. EU Membership: As an EU member state, Finland offers access to the EU single market and its benefits.
  3. Highly Skilled Workforce: Access to a highly educated and skilled labor pool, particularly in technology, engineering, and healthcare.
  4. Innovative Ecosystem: Finland has a strong focus on innovation and technology, with numerous research institutions and tech hubs.
  5. Favorable Business Environment: Finland consistently ranks high in ease of doing business and offers a supportive regulatory environment.
  6. Sustainable Practices: Finland is a leader in sustainability and green technologies, providing opportunities for businesses in these sectors.
  7. Stable Economic Environment: Finland offers a stable macroeconomic environment with low inflation and a strong currency.
  8. High Quality of Life: Finland offers a high standard of living, excellent healthcare, and a favorable work-life balance, making it attractive for expatriates and international employees.

By considering these factors and aligning them with your business goals, you can determine if setting up a company in Finland is the right move for your organization. Consulting with local experts and advisors can further help in making an informed decision.

DALL·E 2024-07-08 12.02.10 - An illustration promoting Grant and Grahams global support for setting up companies. The image features a globe with various business icons around it
How to Set Up a Company

Step-by-Step Guide: How to set up a Company

Setting up a company involves a series of crucial steps that require careful planning and execution. From choosing the right business structure to understanding legal and tax obligations, each stage is vital to the successful launch and operation of your business. This step-by-step guide provides a comprehensive overview of the key processes involved in establishing a company, ensuring you have the knowledge and tools needed to navigate the complexities of business formation.