Doing Business in Finland

Find out why this Nordic country is known as a great place for doing business.

Finland is constantly ranked at the highest levels as one of the easiest places to do business. Read on to learn why Finland is a safe place to have a company and what nuances you should be aware of.Table of Contents

These Tech Giants Are from Finland
Finland's Strategic Position in the Global Economy (Eurozone and a gateway to Asia)
Business Taxation
Business Etiquette
Employing Workers in Finland (paid time off, perks, letting people go, and labor unions)
Reasons to Relocate and Live in Finland (challenges, taxation, and wealth preservation, opening a company and a bank account)
Business Events & Communities to Join, Things to Do in Finland

These Tech Giants Are from Finland

Even with just 5.5 million people, Finland still comes up with a bunch of huge tech companies! How do they do it if they're so small? Many of these companies have strong parent companies that support their growth and innovation.Some of the best-known are

the telecom giant Nokia,
mobile gaming companies Rovio (creator of Angry Birds), Supercell (Clash of Clans), Next Games, and Metacore (developed the trending mobile game Merge Mansion),
F-Secure, an online security company known for its VPN apps, also comes from Finland,
Kone’s elevators are widely used worldwide, as the brand is regarded as safe and reliable (you will sense a theme here).

And there are many more!“Finnish products are synonymous with reliability, durability, and excellence. This reputation stems from a deep-rooted culture of innovation, precision, and respect for the environment.In Finland, quality isn't just a buzzword, it's a commitment. From high-tech manufacturing to sustainable design, every product is crafted with meticulous attention to detail. By incorporating Finnish quality into your products, you’re not just improving their performance; you’re aligning with a legacy of excellence that’s recognized worldwide,” writes Ilya Sokoloff, who works in business development at Nerdsbay.These companies could not have flourished without a productive business climate and culture. Let’s find out what it’s like.

Finland's Strategic Position in the Global Economy

Being part of the European Union and using the euro has benefited Finland's economy. The Finnish government crafted policies stimulating foreign direct investment and economic growth following several EU directives. These aim to spur development across member countries. It's no surprise the World Bank consistently places Finland among the top twenty best nations worldwide for business given support from the EU, Finnish leadership attracting foreign investment, and economic development plans aligning with European guidelines.Foreign investors like Finland for its stable democratic political and transparent legal system. Finnish law protects things like ideas and agreements well. The Ministry of Economic Affairs and Employment crafts policies related to international trade and global competitiveness on a global scale, which attracts foreign companies.This creates opportunities for businesses in Finland, especially green technology, healthcare IT, tech industries, and environmentally friendly materials. Online business in Finland thrives as well because of strong internet access and infrastructure. Finland welcomes companies from around the world by supporting economic growth and making it a fair place to do business internationally.

EU and Finland as a Eurozone Member

As a member of the EU and the European Economic Area, Finland grants you access to a large single market. This is the largest market in the world and even bigger by GDP than the US.As a member of the eurozone, businesses also get direct access to euro clearance (meaning dealing with major fx pairs in payments), instant SEPA transfers, and (potentially cheap) borrowing on loans due to the low interest rates determined by Euribor.

Finland, A Gateway to Asia?

Finland shares its eastern border with Russia, which positions Helsinki as a hub for flights to the East and West. A flight to Dubai takes 6 hours, a flight to Hong Kong 12 hours, and there are direct flights to many important capitals.The war in Ukraine has made it tougher for Finnish businesses to get to Asia. Now, there's no flying straight to important places like Beijing since planes can't use the Russian sky. But borderless companies still find ways. Even though direct flights are gone, Finland remains a good spot for businesses needing Europe and Asia. As part of the EU in northern Europe, Finland gives companies a bridge between the two regions.

doing business in Finland means having a great work-life balance

How Does Business Taxation in Finland Work?

Finnish companies pay taxes at a flat 20% rate on profits. This corporate tax level is fair and relatively low compared to other European nations. Finland's authorities have a reputation for transparency when working with businesses. All accounting and taxes can be filed online, making things simple for international companies.Being an EU member state, Finland follows European Commission tax guidelines for countries. The Finnish Tax Administration notes VAT stands at 25% for most goods/services as of September 2024, though some items face lower rates. For example, it's 14% on restaurant food due to EU position. The Finnish government further reduces VAT to 10% on books and medication.For companies in many countries, it's key to know Finland's double tax treaties with many nations, too. These deals can hugely affect tax duties for multinational businesses. Finnish laws help domestic and foreign companies by reducing double costs in different locations.This coordination between the European Commission, Finnish Tax Administration, and selective tax adjustments aid the economy within the country and the EU. Finnish authorities ensure compliance with these regulations to maintain a fair business environment. The Finnish Competition Authority makes sure businesses follow fair play rules under The Competition Act. Disputes are settled by The Market Court.Languages Used in FinlandFinnish and Swedish are the two official languages of the Republic of Finland. As a highly educated society, English is widely spoken, and there is no shortage of lawyers, accountants, and other professionals who can communicate in English. With these specialists at your side, making sure you can communicate with the tax or patent offices is not a problem.Other languages that are widely spoken include Russian and Estonian. In practice, Swedish is spoken by a smaller minority comparable to some other groups. The Finnish Communications Regulatory Authority oversees electronic communications services, making sure key services are available in multiple languages.At the same time, Finns are proud of their language and culture. As in most places in Europe, it's a good strategy to have your website, product materials, and customer service available in Finnish to develop trust if the local market is the target.The language used in Finland can really affect many companies' business operations. English is common in many jobs, but speaking Finnish too can give big benefits. It helps when handling local buyers, supplier talks, or government paperwork. Having at least one Finnish-talking employee aids a lot of organizations. The staff member bridges any language divides and ensures smooth contact with important Finnish partners. This makes a business run easier for many organizations in Finland.

Finland is a great place for building business relationships

Business Etiquette in Finland

Understanding Finnish business culture and local customs is crucial for success in the Finnish market. Punctuality is valued (but not as highly as, say, in Germany), so it's important to arrive on time for meetings. Finns also appreciate directness and honesty in communication, so it's best to be straightforward in your dealings. Here are more things to know about how to do business in Finland.

Informal culture. Finnish is a language that doesn’t have different words for “you” singular, “you” plural, and “you” singular respectful form of addressing someone (unlike German, for example). This translates into how people communicate: the way you speak to a C-level exec won’t be much different from chatting to a university student.
How people communicate: if you compare how one greets another in American English vs. in “Finnish” English, the difference will be astonishing. When talking to Finns, your messaging and voice should be quite toned down. There are also jokes going around that Finns don’t do small talk. Depending on the person, someone might hear your “How are you?” and hit you back with another “How are you?” and someone might actually tell you that they are not having a great day.
How people look is also very informal. In some industries, like finance or customer-facing professions, people wear suits or a certain uniform. But especially in IT companies, even those with 1000+ employees, people are welcome to express their personalities through how they look, be they dress comfortably or informally or not hiding their tattoos. Someone who has worked in, say, Russian companies might find it a bit shocking and slobbish — but like with any cultural difference, keep an open mind.
Bragging is a curse word in Finland. People are reserved when talking about their professional or personal achievements. It’s not cool to show off your wealth — doing this may cause jealousy. There is a saying that your Finnish neighbor will pay 50 euros to prevent you from earning 100 euros. This might paint Finland as a grim and unfriendly place to be — but hard work is valued here. Entrepreneurship is one of the most "acceptable" ways to become rich.
Trust is a huge part of the Finnish culture. A handshake can often carry the same weight as a written contract. Consider this: many contractual relationships function without a written and signed contract, for instance, short- and mid-term flexible employment agreements or freelance projects.

Employing Workers in Finland

The costs of having employees on payroll in Finland are high — but what you get in return, if managed right, is diligent and satisfied workers who will stay with your company for a long time. Finnish companies gain from educated employees and new buildings.Finnish salaries are high - but at the same time, not as high as in Denmark or the Netherlands.

Median Salary: The median salary in the private sector is 3,800 euros per month before taxes in 2023, according to Statistics Finland. This means that half of the population earns less than this amount while the other half earns more.
Average Salary: The average salary in the Finnish private sector is around 4,220 per month in 2023.

Finnish regulated working hours with plenty of vacation and sick days create a happy workplace for employers and employees alike.

About Paid Time Off and Perks

A full-time employee gets 30 paid vacation days per year. By default, Saturdays are counted in — so one essentially gets five paid weeks off, not six.July is the vacation month, unlike in continental Europe. People commonly take long leave after Midsummer (Juhannus, a holiday around summer solstice), when schools and daycares close, and come back to work in early August. If your contractors or partners are based in the Nordics and you need something in July — tough luck, need to wait until next month.Other than that, Finland has 15 bank holidays per year, some of which fall on Saturday or Sunday and thus don’t affect IT companies that often.There is no such thing as limited paid sick leave days in Finland. It’s also a common perk in IT to allow an employee to take 1-3 sick days only by informing their supervisor.It’s mandatory to offer occupational healthcare and insurance to employees. From IT companies, potential employees commonly expect perks and benefits such as lunch and culture benefits, a budget that can be spent on education, a work laptop of their choice, and company offsite events.With all mandatory and optional costs added up, employers can expect to pay at least 40% of the employee’s gross salary on top of payroll — and in some cases, even 100% more.

Labor Unions in Finland

Like other Nordic countries, over 60% of Finnish workers are union members - one of the highest rates in Europe. Even more importantly, about 90% of Finns have jobs protected under union deals. So even if someone isn't in a union, their workplace still follows the union contracts.Unions used to affect public policy much more through collective agreements. Now, they work differently, and strikes don't stop the whole country. But unions still differ by industry, and the agreements they make set standards for pay, hours, benefits and more. This regulates how companies manage staff. It means better jobs but also streamlines things for employers who deal directly with unions, not each employee.Because of strong unions, Finnish businesses have to follow contracts covering wages, schedules, and other job issues. These limit flexibility and make layoffs or cuts harder in tough times. On the other hand, many companies find unions help productivity and happier staff. Overall, unions are a big part of working life for Finns and the way companies operate in different fields. Their influence makes Finland's labor market function pretty different than countries with less union power.

Letting People Go in Finland

Terminating employment in Finland is a complex process that prioritizes employee rights. Employers must have valid grounds, such as serious misconduct or substantial deterioration of work performance. Even then, the employer must follow strict procedures and provide the employee with an opportunity to improve or defend their actions.In situations where an individual employee's position no longer aligns with the company's needs, the employer may offer training for a new role within the organization. However, when a group of employees must be let go due to changes in business focus, goals, or the need to reduce costs, a formal process called "Change Negotiations" is required.Change Negotiations is a process that allows employers to consult with employees about the planned changes. This process aims to minimize the impact on employees and explore alternatives to layoffs. The duration of Change Negotiations varies depending on the size of the company and the scope, but it typically lasts several weeks. Sometimes, this is the only way to make big changes, such as removing teams or whole branches that no longer align with the business. People who work in Finland and have been through change negotiations call this the time “when everybody stops working for a month.” Because of the uncertainty, productivity may drop.Finnish labor laws heavily favor employee protection, making it challenging for firms to terminate employment contracts without valid reasons and proper procedures. This legal framework reflects the strong influence of labor unions and the emphasis on workers' rights in Finnish society.

Reasons to Relocate and Live in Finland

Where you set up can also strongly affect how well things go. If owners and employees are content and thriving outside of work, they'll likely give their best at work, too. When considering investing in Finland and moving your business internationally, it's smart to look at living conditions. Finland scores high on quality of life. This means a happy and balanced lifestyle for everyone involved in your company. Taking quality of life into account can boost success for not just your business but also your employees.

Work-life balance is highly valued by both employees and business owners. In an open-floor startup coworking space, you will see a founder or a CEO leave around 3 p.m. to pick up their kids from school (this can be either parent, which tells you something about gender equality in work and private life, too).
Healthcare is (almost) free. Public health center services may charge a fee of around 40 euros (in 2024) for routine services, depending on the region. Having a complex procedure such as surgery will also invoke a fee of the same level. This can be a positive shock to those who have lived in the U.S. and are used to paying thousands for an ER visit.
Not only is Finland great for starting businesses, it's also one of the safest countries on Earth. Ranked at the top globally, crime is low in Finland, and its residents trust the police.
The education system from basic school through university gets worldwide praise too. In Finland, almost all kids graduate primary education, and its students score highly on major worldwide student tests like PISA. With its safety and education success, Finland offers families a secure place to live alongside professional opportunities.

“Finland is not just another destination; it’s a place where you can truly thrive. As the happiest country in the world for several years, Finland offers a high standard of living, strong social support systems, and a welcoming environment for international talent,” writes Ilja Sokoloff, who works in business development at Nerdsbay.If your business is headquartered in the land of Thousand Lakes and you subscribe to these values, they will be the backbone of your employer branding and help in talent acquisition.

No System is Perfect

While Finland offers many advantages, it's important to recognize that no country is perfect. Like other European nations, Finland's public healthcare system can experience congestion at times. Additionally, for those with a foreign background or who don't speak Finnish fluently, there may be challenges in navigating bureaucracy and accessing municipal services. The decision of where to live and do business ultimately comes down to personal preferences and priorities.

Taxation and Wealth Preservation

When starting a business or moving with wealth, Finland's tax system matters. Taxes take a good amount on income earned from work or investments. As a result, the inequality in wealth and benefits distribution here is low. The country doesn't give tax breaks just to the rich.For very wealthy people looking to protect their money, Finland may not be their top choice in Europe. That's partly because Finland borders Russia, which shares unrest with Ukraine. Some feel Finland isn't as neutral or safe as wanting due to nearby politics. Wealthy families might prefer locations like Switzerland that are further removed from such tensions and can better shield savings from outside issues, even after Finland joined NATO. Overall, taxes distribute wealth well, but security alone isn't Finland's biggest advantage for multi-millionaires.The real estate market in Finland is open to foreign investment, with some reasonable restrictions, for example, concerning land close to military bases or other important objects.While Finland offers a high quality of life and a safe business climate, it's essential for business owners to weigh these advantages against the potential drawbacks to make an informed decision about whether the country aligns with their long-term goals and preferences.

Finland is a leading place for companies in mobile game development

How to Open a Company in Finland

Starting business in Finland happens fast online. It's important to make a thorough business plan when learning how to set up a company in Finland.A complete plan shows your idea clearly and is needed for grants from Business Finland or visa approval from Migri. Immigration for entrepreneurs and investors to Finland is supported. Visa options for business immigration to Finland help newcomers get permits to live there and start their business smoothly. With the quick online registration and helpful visa programs, Finland welcomes new companies.To initiate the process of starting a business in Finland as a foreigner, entrepreneurs must first choose the appropriate business structure, such as an Oy company in Finland (private limited company), which is the most common form for small to medium-sized enterprises, a very common structure for foreign companies in Finland. An Oy company is like a limited liability company in other places. It requires a minimum 2,500 euro share capital in Finland. Then the business registers as an Oy with the Finnish Trade Register.This office is run by PRH and adds the new company's name and details. Registering makes everything official for the Oy to begin operating legally in Finland. The quick process acknowledges Finland welcomes companies to register and succeed there. As an EU citizen, you can benefit from various advantages when establishing your business in Finland. The new company start process can be done entirely online through the PRH.After registering the company, you get your business ID (Y-tunnus) that serves as the company TIN (tax identification number) — a crucial identifier needed when sending invoices or dealing with government or financial institutions.An additional step is to obtain the necessary permits, and the company formation is done. EU regulations greatly affect Finnish business, governing compliance standards and sector entrance under the European market framework.The Finnish company register provides public access to basic information about registered businesses. From solopreneurs to publically traded corporations, entities are required to submit annual financial statements. Some of this information will become public — here you can see information about the telecom giant Nokia.Business Finland, the government group encouraging foreign spending, and Tetra Consultants, a firm knowledgeable about how things operate locally, make sure companies get detailed support settling into Finland's commercial environment. This ensures that all necessary documentation, including the company's articles of association, is correctly prepared and submitted. There are various support services for business start-ups, including guidance on legal requirements.The EU has regulations and rules that impact business across Europe. As a member of the EU, Finland gives advantages to entrepreneurs from other EU nations starting companies there. Individuals can legally open a firm in Finland as a non-resident, even living abroad, but must meet a few conditions. Read our guide for more details on setting up different types of firms as a European or international founder, resident or not, so you understand all parts of establishing your operation successfully in Finland.

LinkedIn post screenshot describing starting a company in Finland

How to Open a Bank Account in Finland

Setting up a bank account in Finland as an individual or a business owner requires planning ahead. The steps aren't always simple. Parts of opening an account differ based on if it's personal or for a company, plus where the person or business calling Finland home is from originally. Preparing is key so the process for anyone goes smoothly in Finland.Several international banks in Finland (and neobanks) offer services tailored to foreign businesses. Banks offer a range of services, including international transactions and financing options.Finland, unlike offshore locations such as Caymans, has strict regulations to prevent money laundering in business transactions. This makes banking procedures rigid and robust, safeguarding the system and the funds entrusted to it. Read our guide on opening a Finnish account to find out more.

Business Events & Communities to Join in Finland

There are great ways for both Finnish businesses and foreign companies to meet others and expand within the market.

Business Finland, run by the government, assists domestic firms and helps international brands develop in Finland. Their many events speed networking.
Large startup shows like Slush.org in Helsinki let entrepreneurs, investors, and industry leaders from around the world join ideas and potential partnerships each year. Arctic15 does the same for Nordic and further afield startups and financial backers. Check out also Polar Bear Pitching — a business conference that includes founders getting into an ice hole in the sea to pitch their startups. With no time limit.
As a major startup hub, the Maria 01 campus regularly hosts functions matchmaking startups to investors and others in the business ecosystem. In 2024, they launched a digital membership, giving remote access to networking with local ecosystem players, from investors to startups and service providers.
Chambers of commerce in different areas hold useful industry oriented gatherings local companies can gain regional insights from.

What business communities and activities to join in Finland

Things to do in Finland

Going on a trip that includes a lot of business meetings? Organizing an on-site event for the whole team? Here are typical team-building and networking activities to consider:

Lapland Adventures: Experience the magic of Lapland in winter with activities like husky sledding, reindeer safaris, snowmobiling, and skiing. These adventures provide a memorable backdrop for team bonding.
Sauna Experiences: Sauna Experiences: Finnish saunas provide relaxation and comfortable chatting between work friends or partners. Public locations for saunas include trendy spots like Löyly in Helsinki. Spending an afternoon in high heat and then cooling off lets business discussions flow freely. While public saunas require suits, Finnish saunas provide relaxing recharges for co-workers to reconnect through informal chats. A stress-free local custom fostering workplace relationships.
Private Event Spaces: Consider booking a private venue with amenities such as karaoke, a sauna, and a swimming pool for an evening of fun and team bonding. A perfect team evening is less likely to be used for networking.
Cultural Excursions: Take guided tours to historical sites like Suomenlinna, or engage in outdoor team-building activities in nature reserves such as Nuuksio National Park or Laajavuori in Jyväskylä. Sightseeing will be great for receiving a delegation of visitors from abroad, while a physically active arrangement is better suited for team building.
Finland offers a rich culinary landscape that beautifully blends traditional and modern Nordic cuisine. Experience dishes like Karjalanpiirakka (Karelian pastries) or Lohikeitto (salmon soup), which showcase the country’s culinary heritage. Explore the innovative food scene in cities like Helsinki and Turku, where chefs reinterpret recipes using local, seasonal ingredients, such as foraged berries and wild mushrooms. In Lapland, savor dishes featuring fresh reindeer meat and other regional specialties.

Narvi Payments is a Finnish Company

Narvi is proud to be part of the Finnish startup and fintech ecosystem. We have been doing business in Finland since 2015. When deciding to expand our business and acquire a financial license, it was a no-brainer that Finland was the best place to get regulated and build our product.At Narvi, building good technology and providing efficient and flexible solutions is core to our philosophy. Finland makes a perfect partner for us in this venture.And for businesses with headquarters or operations in Finland, Narvi is a perfect banking service partner. We offer:

A dedicated Finnish euro IBAN that makes business banking transparent and flexible and bookkeeping and tracking business expenses easy.
SEPA and traceable SWIFT payments to and from over 100 countries. Narvi helps you cut costs on transfers that involve currency conversions and can even assist with fiat-to-crypto-to-fiat operations.
Fast, fully online onboarding that requires only essential paperwork. Since Narvi is a small and agile team, we provide a fast and personalized service when opening an account and going forward.

Ready to say goodbye to business banking headaches and hello to the ease of doing business in Finland? Learn more to see if Narvi is a good fit for you.

Originally published December 27, 2022. Updated September 19, 2024.DisclaimerThis publication is provided for general information purposes and does not constitute legal, tax, or other professional advice from Narvi Payments Oy Ab or its affiliates, and it is not intended as a substitute for obtaining advice from a financial advisor or any other professional.AuthorValeriya Kushchuk, now Narvi's Digital Marketing Manager, was previously a business reporter in Russia and a marketer in the cryptocurrency space in Finland. Valeriya has been a solopreneur in Finland and a part of the local startup scene since 2016.ContributorIlja Sokoloff, business developer at Nerdsbay, an employer-of-record service. Ilja has founded two companies in Finland.Illustrations: courtesy of Nerdsbay.