Start a Business
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. No minimum share capital (requirement abolished in 2019). Suitable for growth.
Limited Partnership (Ky)
A partnership with one silent partner and one general (active) 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
Not sure what you need? Just talk to us.
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