How to Open a Company in Finland

Find out about launching a business in Finland and the benefits of doing so here.

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 entering 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

The Limited Liability Company or Private Entrepreneurship model is the most recommended for foreign companies. There’s absolutely no need to physically visit Finland to open a company there, as all the necessary forms can be filled out and submitted online. After you registered a company, you will get a Business ID (y-tunnus) assigned to you. Its format is seven digits, a dash, and a control mark, for example, 1234567-8. If you add FI and remove dash, you'll get your VAT ID - e.g., FI12345678. Y-tunnus is your business tax identification number that you will need to print on your invoices and present when dealing with banks or tax administration.Do I need to travel to Finland to set up my company?Since the 1st of July 2019, the minimum share capital requirement for private limited companies has been nonexistent. Before then, the fee used to be 2,500 euros. This also means that there’s no need to physically travel to Finland to create a bank account for depositing the share capital before opening your company. This amendment has made setting up a company in Finland even easier for foreigners. Company Taxation and Bookkeeping All companies are obliged to submit annual financial reports. Upon registering a company, a tax number is immediately assigned. In Finland, the corporate tax rate is just 20%, which is lower than the likes of Portugal, Germany, France, Austria, and Belgium. Any dividends received by the company are not taxable except in rare instances, such as when the shareholding is less than 10% of the distributing company’s equity. Additionally, there’s no VAT charge for providing services or selling goods abroad. Note that you can always contact a company formation lawyer to put you through the process of setting up a new company in Finland.

Bank Accounts in Finland

Opening Bank Accounts After setting up a company, the next step is to create a business bank account to get your operations started. Read in detail about the process and requirements for opening a Finnish account. In Finland, it's worth noting that 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.Luckily, if traditional banks don't serve your business needs, you don't need to stick with them — instead, consider neobanks, most of which have an Electronic Money license (which is the next best thing after the banking license). Neobanks can help you with setting up an account in Finland or elsewhere in the EU.

Narvi Payments

The Ultimate Digital Business Banking Solution for EU Companies

The truth is, modern businesses need customized banking experiences. They need banking solutions tailored to their precise needs, flexible and accessible across multiple digital platforms. Interestingly, that’s what Narvi brings to the table.Narvi is a digital banking solution designed to deliver the best services to countries within the EU. Rather than spend valuable time navigating the tricky waters of Finland’s traditional banks, why not create an account with Narvi with a few simple clicks and access your finances from a single highly-optimized and intuitive dashboard? Here are some of the benefits of Narvi’s digital banking solution for businesses:Easy OnboardingNarvi is quite easy to use. The service includes a comprehensive onboarding session for business owners as they gain knowledge of this unique banking solution and how to make the best of its customized solutions.SWIFT PaymentsWith a Narvi business account, you can receive and send international payments to and from over 100 countries. Narvi has integrations with the ECB (European Central Bank) banking system and the SWIFT global network. With it, you can track payments online, use one IBAN account for international financial dealings, and comply with local payment standards and regulations. Intercompany SolutionsNarvi also has great digital banking for multinationals. It allows you to get dedicated IBAN accounts for each company and access all the financial details from a single dashboard. You can give different levels of access to directors, auditors, accountants, and employees and download account statements whenever needed. Indeed, Finland is one of the best places in the EU to do business, primarily because of its highly digitized economy and favorable corporate tax rates. However, the only area where it falls short is in the area of banking, where many of its financial institutions don’t have seamless account-opening procedures for new, foreign companies.That is why digital solutions like Narvi are essential, as they give total control to the companies and provide customized banking services that are truly world-class.

Originally published January 31, 2023. Updated November 6, 2024Authors

Neil Ambikar, Co-Founder and CFO of Narvi Payments
Valeriya Kushchuk, now Narvi's Digital Marketing Manager, previously a business reporter and marketer in the crypto space.

Disclaimer
This 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.

How to Open a Company in Finland

Find out about launching a business in Finland and the benefits of doing so here.

How to Open a Company in Finland?

The Ultimate Digital Business Banking Solution for EU Companies

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