How to Open a Business Bank Account in Finland

What are the requirements for setting up a bank account in Finland? And is there an alternative to traditional banking? Read this to find out.

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.

Banking in Finland

Opening a Bank Account in Finland

To open a business bank account after registering your company, Finland requires extracts from the trade register. Depending on the bank you choose, you must present several company documents. Finland has a few banks with a large presence in the Nordics as well as the ones with only nation-wide coverage:

Nordea and Danske Bank have branches all over the Nordics. In 2024, Handelsbanken withdrew from Finland.
OP Financial Group (Osuuspankki), Savings Banks Group (Säästöpankki), Aktia, S-Bank (S-pankki), Pop Bank, and Ålandsbanken are local Finnish banks.

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

In instances where the limited liability company receives share capital, a separate account is required to make the payment, prior to incorporation within the Trade Register.In place of extracts from the Trade Register, banks will request the following documents:

Memorandum of Association (three years at most)
Trade Register certification showing the submission of startup-notification
A copy of the company’s startup notification.

Your primary company identifier is your business ID (Y-tunnus) that also serves as corporate tax number.There are slight hitches for foreign companies as the traditional banks tend to make the procedure longer than normal. As such, Finnish Neobanks, such as Narvi, are much better options, as they provide a host of solutions tailored to meet the needs of business owners.Opening a bank account in Finland for residents and non-residentsThis is where more nuances will surface. Finnish banks will request, besides company paperwork, documents from the person opening the account. Those may include:

Proof of ID, such as passport
Relevant residence permit
Proof of address
Your Finnish personal ID number (henkilötunnus)

Non-residents may face some limitations. For example, a bank might decide to open a business bank account but refuse to issue a business payment card. You would need to use other payment cards for business expenses, which will complicate the bookkeeping.In practice, Finnish banks are more likely to say no instead of doing a deeper check. If, say, a non-resident American wants to open a business or personal bank account, Finnish banks will probably reject them. However, in countries with more developed banking procedures like Switzerland, the banker will ask further questions about the purpose of the account, its intended use, and the person opening it. This is an example panelists who live and do business in Switzerland used at the “Future-proof investment environments: Luxembourg and Switzerland as Strategic Options” event (hosted by the Finland Chamber of Commerce in Luxembourg and Chamber of Commerce Finland-Switzerland in summer 2024) where Narvi was present.

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

Based on the startup notification, new companies are issued Business IDs and entered into the Tax Administration’s taxpayers register. The notification can also be used to request entry in the VAT register, prepayment register, and employees register if necessary. TaxationForeign companies in Finland are viewed as non-resident taxpayers; thus, they have limited tax liability. This is a highly favorable regulation for foreign investors and further depicts why Finland is one of the best places to do business in Europe.On the other hand, companies fully incorporated and headquartered in Finland (non-foreign) are regarded as resident taxpayers with full tax liability. Requirements for Non-EU CitizensThe registration process is quite straightforward for business owners residing locally in Finland or within the EU as foreigners.However, non-EU business owners have a few extra requirements. They require residence permits granted for a minimum of a year, after which they can then register with the Digital and Population Data Services Agency to acquire a Finnish personal identity code and a municipality of residence.The best part is that the entire registration can be completed online. This seamless business setup procedure is another reason why doing business in Finland is an attractive option for foreigners.

Doing Business in Finland: What It Entails

Traditionally, 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. The country is regarded as a safe place to do business.The local currency is the euro. For companies that conduct transactions outside of the Eurozone, it's important to keep forex nuances in mind. Luckily, euro makes many currency pairs major and less risky to work with.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

Foreign companies are usually registered as private limited liability companies to better enjoy the flexible regulations that the Finnish system is so popular for. These regulations are key to effective corporate decision-making.

The Ultimate EU Business Banking Solution

Narvi Payments, Alternative to Traditional Banks

Narvi is a neobanking solution that provides borderless banking services. With Narvi, business owners can bypass the restrictions of traditional banks and limitations of remittance services and directly access a wide range of compliant financial services to help their companies scale. With its many integrated services, Narvi enables users to work with international and local suppliers and customers easily. Plus, the onboarding process is quick and can be done online.As an EU-based country, Finland is also a member of the eurozone. What better way to manage your business finances in Finland than to use a banking solution that has the Euro central to its workings?Here are some reasons for you to choose Narvi.IBAN and SWIFT integrationWith Narvi, you’re assigned a unique IBAN to help you transact globally via the SWIFT network. As such, you can easily receive and send money to clients across the European Economic Area and the rest of the world. You can also track and trace transfers.SEPA Instant PaymentsNarvi allows business owners to make payments within SEPA (Single Euro Payment Area). Additionally, Narvi’s Smart Routing technology helps to monitor SEPA transfers at every stage.Multi User AccessIf you’re still considering opening an account with a traditional Finnish bank, here’s a potential deal-breaker in favor of Narvi – each IBAN account has multi-user access. Users with full access can add other users, send transfers, view transaction data, download banking statements, and more. A second tier of users exists, with view-only, limited access. As such, different shareholders, employees, and relevant third-party bodies, such as external auditors, can seamlessly access specific financial details at any time.IntercompanyOne of Narvi’s most exciting features is its capacity to link several companies and manage their financials from a single dashboard. If you own a group of companies, you can create unique IBANs, set up multilayered group access, and manage each company individually. Finally, Narvi allows you to manage intercompany payments seamlessly.Conclusion Finland’s pre-existing regulations make setting up a business there as seamless as possible. However, its traditional banks are quite limited in scope and do not offer the full range of payment services to business owners. Foreign companies looking to establish a presence in Finland will find it tough to navigate the processes of opening a business bank account with traditional banks. Even more, the difficulty increases if, for some reason, you cannot be physically present in Finland to complete the registration. Such complex processes can slow down your business incorporation and incur additional costs in the form of service fees. Why not opt for an efficient business bank account solution that’s quick and easy to register with and offers several integrated services tailored to your business needs? Indeed, with Narvi, companies can easily set up an IBAN account and access several financial tools to help them scale seamlessly.Find out how Narvi can transform your business banking.

Originally published February 16, 2023. Updated November 6, 2024Author

Valeriya Kushchuk, now Narvi's Digital Marketing Manager, previously a business reporter and marketer in the crypto space. Valeriya has been a solopreneur and part of the Finnish startup scene since 2016.

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.