- The Story
Introduction
Starting a business in Finland (yrityksen perustaminen) is an exciting opportunity, but it requires careful planning and knowledge of local regulations. Selecting the right company type, registering with authorities, setting up accounting (kirjanpito), and understanding tax obligations (verotus) are essential for success. Whether you are an entrepreneur from Finland or an international investor, navigating Finnish business regulations can be complex without professional guidance.
Finko Consulting helps clients streamline the company formation process, ensuring compliance and a solid foundation for growth.
Choosing the Right Company Type
Finland offers several business structures suitable for different goals and sizes of operations:
- Osakeyhtiö (Oy) – Limited liability company, most common for SMEs. Shareholders are only liable for their investment.
- Toiminimi – Sole trader, ideal for individuals starting a small business. No minimum capital is required, but the owner is personally liable for business debts.
- Avoin yhtiö / Kommandiittiyhtiö – Partnerships suitable for two or more owners. Liability varies depending on the structure.
Choosing the correct type affects taxation, liability, reporting requirements, and eligibility for certain deductions. For instance, Osakeyhtiö (Oy) offers favorable corporate tax (yhteisövero) treatment and easier access to investors.
Company Formation Steps
Forming a company in Finland involves several critical steps:
- Register with the Finnish Trade Register (Kaupparekisteri)
- Apply for VAT registration (ALV-rekisteri)
- Register as an employer (Työnantajarekisteri
- Establish bookkeeping (kirjanpito)
Tax Considerations
Understanding taxation (verotus) during company formation is essential:
- Corporate tax (yhteisövero): Current rate is 20%, planned reduction to 18% from 1 January 2027.
- Value Added Tax (VAT / Arvonlisävero – ALV): Correct rate setup is essential for compliance. Rates: 25.5% standard, 14% reduced until 31 Dec 2025, 13.5% from 1 Jan 2026 for reduced categories, 10% lower reduced rate for newspapers/magazines.
- Employer contributions must be properly calculated and reported if hiring staff.
Legal & Compliance Requirements
Proper compliance protects the business and its owners:
- Maintaining accurate records (kirjanpitokirjat ja tositteet) for at least six years
- Preparing annual financial statements (tilinpäätös)
- Filing VAT (ALV-ilmoitus) and corporate tax returns
- Ensuring digital or physical documents are auditable
- Understanding obligations for employees and contracts
Failure to comply can result in fines, penalties, or even legal action
Why Professional Support Matters
Starting a business in Finland (yrityksen perustaminen) requires careful planning, legal compliance, and knowledge of taxation and accounting requirements. From selecting the right company type to registering with authorities and setting up proper bookkeeping, each step is crucial for long-term success.
Finko Consulting offers comprehensive services to help entrepreneurs and companies establish their operations in Finland efficiently, professionally, and in full compliance with Finnish regulations.
