How to open a company in Finland
If you’re looking to expand your business operations into Finland to take advantage of the many benefits of doing business there, you’ve come to the right place.
The basics
The requirements for setting up a company vary slightly across the European Union (EU). Foreign multinationals seeking to incorporate their businesses in the EU will soon find that the setup is more complicated in certain countries than in others. However, Finland stands out among EU nations as one of the most favored nations to open a company. The entire process, from business incorporation to taxation filing and account opening, is quite straightforward. If you’re looking to expand your business operations into Finland to take advantage of the many benefits of doing business there, you’ve come to the right place. Keep reading to learn more about why and how to open a company in Finland. Finland as an EU MarketplaceIn the corporate world, it’s impossible to talk about Finland without emphasizing its status as a member nation of the European Union.Finland became a member of the EU in 1995 and was a part of the Eurozone at its launch on the 1st of January, 1995. As such, the nation is a part of the Economic and Monetary Union of the European Union (EMU).Finland ranks first in the Digital Economy and Society Index of all EU countries, which indicates its high digital performance and competitiveness within the EU. As a country that has embraced digital innovation to the very highest levels, it becomes easy to understand that the process of setting up a company in Finland is equally digitized. Furthermore, the latest World Bank index on ease of doing business places Finland in a healthy 20th place globally, further highlighting just how attractive the prospect of setting up a company in the country is. Opening a company
How to Open a Company in Finland?
Like any other country in the EU, Finland has a fixed legal framework for company incorporation. That is to say that anyone looking to set up a company in Finland must adhere to certain legal requirements. These requirements include Value-added Tax (VAT), customs and excise duties, company tax, product standards, compliance, and employment and staff welfare. There are various stages to pass through when setting up a company in Finland. However, the good news here is that setting up a company can be done fully online. All the necessary paperwork, including registration, VAT filings, and taxation, can be completed online. This easy procedure is one of the reasons why Finland is such a great place to start a company. On the other hand, setting up a company in other EU jurisdictions like Germany and Luxembourg can take as much as 3-4 months, as the process is only partially online, and there’s a lot of bureaucracy involved in the procedure. Cost of Opening a Company in FinlandCompared to other EU countries like Germany, Italy, and Belgium, opening a company in Finland is relatively inexpensive. If you’re unfamiliar with the Finnish system, it is preferable to hire a lawyer for your company formation – they’ll charge about 500-700 euros. Registering a limited liability company costs just 380 euros. Registering Your Business in FinlandA foreigner can set up a company in Finland by registering it with the Finnish Trade Register. A minimum of three board directors is required, with at least one of them being an EU or Finnish resident, to acquire a business residence permit. You can choose various business models, such as:- Limited Liability Company
- Private Entrepreneurship
- Limited Partnership
- Public Limited Company
- Cooperative Association
- General Partnership
Bank Accounts in Finland
Opening Bank Accounts After setting up a company, the next step is to create a business bank account. In Finland, most banks have a rather traditional mode of operation and aren’t 100% responsive when the company directors are foreign. Hence you need a digital bank account that offers everything you need without even needing to set foot in Finland.Narvi Payments