How to Open a Bank Account in Finland?
What are the requirements for setting up a bank account in Finland? And, is there an alternative to traditional banking? We’ll get answers to these questions and more below. Keep reading to learn more!
It takes a whole lot to run a business efficiently. From incorporation to taxing and ensuring that you have fulfilled all the legal requirements, there are plenty of things to consider. Indeed, Finland is one of the best places to set up a business in the EU due to favorable policies that allow business owners to go through the registration process seamlessly. However, when setting up a bank account, things can become a bit tricky.How does one navigate the process? What are the requirements for setting up a bank account in Finland? And, is there an alternative to traditional banking? We’ll get answers to these questions and more below. Keep reading to learn more!Doing Business in Finland: What it EntailsTraditionally, Finland has always been a small open economy, albeit with a massive, strong export sector. Like many other EU countries, Finland has a highly industrial market, with dominant industries in metals, chemicals, and forestry. Foreign InvestmentIn Finland, no law restricts foreign investment. However, it’s essential to acquire the necessary authorization in certain sectors like payment services, fund management, and banking. In addition, some trading requirements and restrictions apply at the EU level and nationally to the export and import of goods to and from certain EU countries. For instance, Finland, as a part of a wider EU policy, has imposed trade sanctions on Russia due to its conflict with Ukraine Business VehiclesBusinesses in Finland can be registered as:
- Sole proprietorships
- Limited partnerships
- General partnerships
- Cooperative societies
Open a company
Registering a New Business in Finland
Most companies in Finland are required by law to be registered in the Finnish Trade Register. These companies, including foundations and cooperatives, are obliged to file paperwork identifying their corporate ownership. However, these laws do not apply to publicly listed companies because their shareholders can be identified via other means according to laws on the securities market. Foreign companies registered as limited liability companies must be registered with the appropriate national body (Finnish Trade Register) within three months of signing an incorporation memorandum. The startup notification to this body must contain certain data about the company, including:- Memorandum of incorporation
- Articles of association
Banking in Finland
Opening a Bank Account in Finland
After completing your company registration, the next step is to open a business bank account. In Finland, this requires extracts from the trade register. Depending on the bank you choose, you must present several company documents. Finland’s three prominent banks are the OKO Bank Group, Sampo, and Nordea Bank Group, all of which comprise around 80% of the entire industry. Most Finnish banks offer basic payment account services to businesses within the European Economic Area. However, they also reserve the right to decline client access if they wish. With private limited liability companies, it’s best to delay the account opening process until full incorporation into the Trade Register. Here are some of the documents required by the banks in order to open an account:- An extract from the Trade Register that’s a maximum of three months old
- Articles of Association
- Board meeting minutes
- Personal identification document
- A business plan outlining the nature of the company’s operations
- Memorandum of Association (three years at most)
- Trade Register certification showing the submission of startup-notification
- A copy of the company’s startup-notification.
The Ultimate EU Business Banking Solution