Establishing a Company in Finland

Finland is situated in northern Europe and is part of the Scandinavian group of countries. Its borders are marked by the Baltic Sea to the southwest, the Gulf of Bothnia to the west, and the Gulf of Finland to the south. Territorially, Finland shares borders with Norway to the north, Sweden to the west, and Russia to the east. The original Finnish name for Finland is "Suomi", signifying "swampland". The name Finland that is familiar to us all finds its origins in the Swedish language, and it means "prime land". Throughout much of its history, Finland was part of the Swedish Kingdom, it was conquered by the Russian Empire in the 19th century, and after the communist revolution in 1917, Finland declared its independence. In 1995, the country was added to the European Union, and it is part of the Eurozone. Establishing a company in Finland offers effective access to the European and Scandinavian markets, and offers the highest levels of business, financial and technological infrastructure.

Finland is often referenced as an example of economic prosperity that successfully combines corporations and capitalistic entities with social-democratic governance in which the government endeavors for the benefit of its citizens. It’s no surprise that residents of Finland rank amongst the world’s happiest citizens! Finland's capital and largest city is Helsinki. The country’s population numbers roughly 5.5 million residents, most of whom are concentrated in the southern reaches of the country, for their temperate climate.

  • The communications conglomerate, Nokia, formerly the leading name in the global cellular industry and presently, a largely forgotten name from the archives of technology, generated, in its heyday, an astounding 4% of the Finnish GDP. After the brand’s collapse, Finland suffered a crushing blow, although it recovered from the recession a number of years later by creating alternative growth engines.
  • Over the 2017–2019 time period a social experiment of “basic income for all” was conducted in Finland, in which 2,000 unemployed residents were awarded a fixed monthly stipend in order to examine whether this scheme would act as incentive to join the employment market and to lead normative lives. However, the experiment did not provide evidence that the method was effective.
  • Every year, a competition is held in Finland in which husbands carry their wives over a special course that includes passing through water. The first prize is the weight of the winner's wife in beer.
  • There are more saunas in Finland than cars. There are over 2 million saunas in private homes and places of business, including a sauna inside a Burger King branch.

Finland's present-day economy is very progressive, sophisticated, and competitive and this, despite the perception of Finland being a social democratic welfare state, something that, conceptually, usually isn't well aligned with free markets. The country’s industrial sector accounts for a substantial portion of Finland’s economy, beginning with well-regarded and stable traditional industry and through to advanced and innovative technology. Finland's GDP is exceptionally high, as is its GDP per capita, which is amongst Europe’s highest. Despite the financial crises of the last decade, Finland’s financial sector was able to maintain its stability, and, as mentioned, the country managed to make an impressive comeback from the global and local economic downturns. Salary levels in Finland are high, and the country's human capital is well educated and top quality. The entrepreneurial and startup momentum in Finland is laying convenient and appealing foundations for entrepreneurs and corporations wishing to establish companies in Finland.

General Information


Type of company

LLC (Oy)

Relevant Companies Law

Limited Liability Companies Act - Finland

Offices

Businesses are required to provide the authorities with the address of a local office.

Language of original incorporation documents

Finnish

Finance and Taxation


Currency

Euro (EUR)

Corporate tax rate

20% for corporations and individuals

Standard share capital

Minimum require share capital require: 2,500 Euros.

Office Holders


Company Secretary (Secretary)

 
Obligation to appoint company secretary

Not required

Obligation to appoint local secretary

Not required

Type of entity that may function as company secretary

Not applicable

Director

 
Obligation to appoint company director

Required

Obligation to appoint local company director

It is required to appoint at least one director that is a citizen of the European Economic Area (EEA).

Minimum number of directors

2

Type of entity that may serve as company director

Individuals

Shareholders

 
Obligation to register shareholders

Required

Obligation to register local shareholders

Not required

Minimum number of shareholders

1

Type of entity that may register as shareholder

Individual and / or a company

Type of shares

Registered shares and / or bearer shares

Accessibility of Information


Company registrar

Information regarding shareholders and directors is publicly accessible.

Annual Assembly and Reporting


Obligation to hold annual assembly

Required

Obligation to prepare financial reports

Required

Obligation to submit financial reports

Required

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