Company Formation in Finland

Company Formation in Finland

Finland is a Nordic country which is present in Northern Part of Europe. This country is seventh largest in Europe comprising of land and geographic borders. Vast portion of Finland is covered by forests. Finnish economy is thriving with development of service sectors and manufacturing sectors. Services sector in Finland is booming with large amount of operations. Company formation in Finland is quite straightforward; however it is important to comply with the requirements of local laws.

Package inclusions:
  • Procedure for Company formation in Finland
  • Documents required for company formation in Finland
  • Liaising with the concerned regulatory authorities for company registration in Finland
  • End to End Support

Company Formation in Finland

Company Formation in Finland- An Overview

Finland is also known as the Republic of Finland. It is present in the northern part of Europe and is considered as a Nordic and Scandinavian country. Large part of land mass in Finland is covered by forests. Hence export of forestry and allied types of products are the main businesses in Finland. Company Formation in Finland is quite straightforward; however investors have to respect local laws and culture for successive business registration in Finland.

The services sector in Finland is booming with significant amount of revenue deriving from it. About more than 60% of the government revenue comes from the services sector. After this sector, manufacturing and production activities contribute to the development of the GDP of Finland. Information technology and electronic production are one of the main areas in Finland. Export of paper, software products and forestry products are also major sources of domestic revenue in Finland.

The mobile phone company Nokia was the largest producer of phones and has Finnish roots. As per the Index of Competition, Finland is considered as one of the most competitive economies in the world. Incorporating a company in Finland is quite straightforward.

Hence the above reasons should be considered by an investor for company formation in Finland.

Benefits of Company Formation in Finland

The following are the benefits of company formation in Finland:

Benefits of Company Formation in Finland
  • Competitive Economy

    As per the Index of Competition, Finland is considered as one of the most competitive economies in the world. This would be in the areas of the services, manufacturing and exports.

  • Services Sector

    The services sector in Finland is booming. This contributes to more than 60% of the revenue of the government. These services sector would include financial services, insurance services and other forms of services.

  • Manufacturing Hub

    Finland is a large manufacturing and production hub in the world. This would predominantly include sectors such as telecommunications, paper and other industries. Electronic equipment are manufactured in Finland and exported to other countries. Forestry goods and products are also produced and exported to other countries. This is due to the amount of landscape in Finland.

  • Exports

    Finland is known for exports of different types of resources. Such resources would include forestry products, manufacturing equipment and other types of products.

Eligible Business Structures for Company Registration in Finland

The following are eligible business structures for company registration in Finland:

Eligible Business Structures for Company Registration in Finland
  • Tax Resident LLC

    This form of entity has the principle of limited liability. Such company is known as a domestic tax resident. Corporate tax at the rate of 20% would be levied on this type of organisation.

  • Free Zone LLC

    This type of entity would be formed in a Finnish free zone. Usually companies which are into manufacturing and services would be considered under this form of entity.

  • Private Limited Company

    This type of company is also known as Osakeyhtiö (Oy). Such entity is not allowed to list shares in the stock exchange. The liability of this form of entity is limited to a particular amount of capital which is subscribed. Private Limited and Public Limited Companies in Finland are regulated by the law of Finland. This would be considered as the Companies Act (2006/624).

  • Representative Office

    A representative office is a mere extension of a foreign parent company in Finland. The representative office can carry out different forms of activities related to promoting the activities of the parent company. This would usually include market research and other types of activities.

  • Branch Office

    A branch office is a mere extension of the foreign parent company. In the branch office usually operations can be carried out under the scope of the foreign parent company.

  • Co-operative society (Osuuskunta)

    Cooperative Societies in Finland is regulated by the Co-operatives Act (2013/421). The legal liability of the members is separate and they are independent to carry out different forms of activities. The members of a co-operative society are not liable for the debts of the company.

Minimum Eligibility Criteria for Company Registration in Finland

The following eligibility criterion is required for company registration in Finland:

Minimum Eligibility Criteria for Company Registration in Finland
  • Minimum Capital Requirements

    For a private limited company there is no capital requirements. However, for a Finnish public limited company the minimum capital requirements are EUR 80,000. An applicant for company formation in Finland has to satisfy the minimum capital requirements of the company.

  • Minimum Directors

    There has to be one director and one deputy director for forming the company in Finland. If there are two directors, then the board must appoint a deputy director to carry out the requirements of the company. A director must be a natural person, above the age of 18 years and should not be liable for any criminal offences. The director must also not be declared bankrupt or adjudged as an insolvent. At least one member or director must be a resident of the European Economic Area (EEA). This would usually be the case, unless they are granted an exemption from the Finnish Trade Registry.

  • Minimum Shareholders

    A minimum of one shareholder is required for the process of company formation in Finland.

Procedure for Company Formation in Finland

An applicant for company formation in Finland can use the Finnish LLC (Limited Liability Company), as this is one of the most utilised types of business structure for company formation process. Apart from this, a shelf company can be utilised for the process of company formation in Finland. The following steps have to be considered for the process of company registration in Finland:

  • Choose the Type of Business Structure

    First and foremost, the applicant for company formation in Finland has to choose the required business structure. Usually an LLC is considered as a suitable business structure. On choosing the business structure, the company would have the principle of separate legal entity. Such registration and incorporation of the entity must also be informed to the Finnish Tax Authority (FTA).

  • Submit Documents to the Trade Registry

    When a company is formed in Finland, the documents must be submitted to the trade registry to carry out the incorporation process. The following documents have to be submitted to the trade registry:

    • Board Minutes of the Company taking the decision for incorporating a company in Finland.

    • Board Resolution for opening the corporate bank account in Finland.

    • Memorandum of Association- Which provides details of the original shares which are subscribed by the members to the company.

    • Articles of Association of the Company.

    • Notification from the Finnish Trade Registry.

    • Fee Receipt for Finnish Trade Registry- EUR 380 for the physical process and EUR 270 for the online process.

    • Confirmation from the auditor regarding the payment of share capital. If there is no auditor in the company, then a receipt for confirmation of the payment of share capital must be provided.

  • Approval of Articles of Association

    The Finnish Trade Registry has to make an approval of the articles of association of the company. Once the articles of association are approved by the Trade Registry, then such documentation can be filed online. This process can be carried out through the Finnish Trade Registry. Apart from this, one of the Board Members in Finland must also have an internet bank account to carry out the above process.

  • Name of the Company

    The Company has to satisfy the requirements with the name. A private limited company has to have Oy ("Ltd") or osakeyhtiö (meaning "limited company") in the name. A public limited company formed in Finland has to have Oyj or "julkinen osakeyhtiö" in the name. The name of the company must not breach the requirements related to intellectual property rights.

  • Registration Time

    The documents of the company can be sent in physical form to the trade registry or submitted online. The online system can be utilised if the articles of association has been verified by the Finnish Trade Registry. Usually the process for company formation in Finland would take about three weeks. When the company is registered, then limited liability status would be present.

Compliances for Company Registration in Finland

The following compliances have to be carried out for company formation in Finland:

  • Shareholders Meeting

    A private limited company (“Oy”) is required to hold annual general meetings in order to carry out compliances related to changes in the company and voting matters.

  • Board Meeting Requirements

    There are no statutory requirements for board meetings. Minimum of one board meeting must be conducted in a year.

  • Finnish Corporate Tax

    Corporate tax at the rate of 20% is levied on the world wide income of Finnish Companies. This compliance has to be carried out as per the profit and loss statements of the Finnish Company.

  • Business Registrations and Filing Requirements

    All business registrations have to be carried out in accordance with the requirements of the company. All filings must be carried out with the Finnish Trade Registry.

  • Financial Statements

    Financial Reporting and statements have to be prepared in accordance with the requirements of the GAAP (Generally Accepted Accounting Practices). Any company which is listed in the Stock Exchange would comply with the requirements of the International Financial Reporting Standards (IFRS). All financial statements have to be submitted to the Finnish Tax Authority (FTA). This must be carried out four months at the end of the Financial Year.

  • Disclosures

    All Disclosures related to the Company must have the VAT registered ID. This would include all the letters, company forms and documents.

Documents Required

The following documents are required for company formation in Finland:

  • Board Minutes of the Company taking the decision for incorporating a company in Finland
  • Board Resolution for opening the corporate bank account in Finland
  • Memorandum of Association- Which provides details of the original shares which are subscribed by the members to the company
  • Articles of Association of the Company
  • Notification from the Finnish Trade Registry
  • Fee Receipt for Finnish Trade Registry- EUR 380 for the physical process and EUR 270 for the online process.
  • Confirmation from the auditor regarding the payment of share capital. If there is no auditor in the company, then a receipt for confirmation of the payment of share capital must be provided.

How to reach Enterslice for Company Formation in Finland

Fill The Form

Get a Callback

Submit Document

Track Progress

Get Deliverables

Frequently Asked Questions

There are no minimum requirements for company formation in Finland. Compliance with the relevant Finish Corporate Law is required for Company registration in Finland.

A Finnish Limited liability company is usually utilised for company formation.

There is no form of foreign investment restrictions in Finland. However, as per the Finnish Ministry of Economic Affairs, if there are any acquisitions or investments pertaining to national interest, then such restrictions would be levied.

For a private limited company there are no capital requirements. However, for a Finnish public limited company the minimum capital requirements are EUR 80,000.

A director can be a resident in Finland to carry out the responsibilities. However, Finnish companies also accept directors who are resident of the European Economic Area (EEA). There can be an exemption related to this, if the trade register grants the same.

Yes, there are specific sector regulations in Finland. For example, there is monopoly related to gambling. This would be present in areas related to retail trade. Financial services sector such as insurance and banking would require relevant consent from the regulator.

Why Enterslice?

Top 100 Most Innovative Companies in Asia

Top 100 Most Innovative Companies in Asia - Red Herring

Forbes 30 Under 30 in American business

Forbes 30 Under 30 in American business and industry figures Lists.

Services delivered by 300+ Qualified CA and CS

Services delivered by 300+ Qualified CA and CS

Top 100 Most Innovative Companies in Asia - Red Herring

Top 100 Most Innovative Companies in Asia - Red Herring

Trusted Partner

Hey I'm Suman. Let's Talk!