Starting a Business in Finland

A comprehensive guide to setting up a company in Finland.

Starting a business in Finland is straightforward but requires several steps. This guide helps you understand the process from start to finish.

Business Forms

The most common business forms in Finland are:

Sole Trader (Toiminimi / Tmi)

The simplest form. Suitable for freelancers and small entrepreneurs. No separate legal entity — the entrepreneur is personally liable.

Limited Company (Oy)

The most popular business form. Separate legal entity with limited liability. Minimum share capital €2,500. Suitable for growth.

Limited Partnership (Ky)

A partnership with a silent and a general partner. Suitable for small family businesses.

Cooperative (Osuuskunta)

A democracy-based form. Suitable for community entrepreneurship and cooperative activities.

Registration Step by Step

The basic steps for setting up a business:

1Choose a business form (Tmi, Oy, Ky or cooperative)
2Choose a company name and check availability at PRH
3Complete the registration form (Y1, Y2 or Y3)
4Register with the Trade Register (PRH)
5Register with the Tax Administration (VAT, prepayment, employer)
6Open a business bank account
7Arrange bookkeeping — hire an accountant or manage it yourself

Taxation

As an entrepreneur in Finland, you should understand at least these tax types:

Value Added Tax (VAT)

The general VAT rate is 25.5%. VAT returns are filed monthly or quarterly via OmaVero.

Income Tax

Corporate income tax is 20% (Oy). Sole trader income is taxed as the entrepreneur's personal income.

Employer Contributions

Social security contributions, TyEL pension insurance, accident insurance and unemployment insurance.

Do You Need an Accountant?

An accountant saves time and prevents mistakes
All companies have a statutory bookkeeping obligation
An accountant knows the tax benefits and deductions
Financial statements and tax returns require expertise
Bookkeeping errors can lead to penalties

Starttiraha (Start-up Grant)

Starttiraha is a support from TE Services for new entrepreneurs. It is approximately €37.21/day and can be received for up to 12 months. Apply for starttiraha before starting your business. You need a business plan and a profitability calculation.

Common Mistakes

Forgetting or delaying VAT registration
Inadequate bookkeeping and missing receipts
Mixing business and personal expenses
Late filing of tax returns
Postponing hiring an accountant
Not having a business plan

Need help setting up your business?

Get in touch