Finland Company Formation

INTRODUCTION TO SETTING UP A COMPANY IN FINLAND

Company Formation in Finland is attracting foreign investors to its stable economic, political and friendly business environment.Setting up a company in Finland can be challenging.From the 1st of July 2019, the requirement of the share capital for Finnish company is 0€, which make company setup really easy with remote process.

What is the most common type of company in Finland?

The two most popular forms of business entity in Finland are:

  • public limited company – osakeyhtiö Oyj
  • private limited company – osakeyhtiö Oy

How much share capital is required to establish a public limited company (Oyj)?

  • The minimum share capital for a public limited company is €80,000.

What other requirements are there for a public limited company?

  • a minimum of three board directors plus a managing director
  • memorandum of association
  • articles of association
  • audit mandatory; at least one of the auditor’s must be “KHT auditor” which means an auditor who is approved by the Auditing Board of the Central Chamber of Commerce, or, a “KHT firm” which means an audit firm approved by the same;
  • financial statements (profit and loss account, balance sheet, notes to the accounts & annual report) should be filed with the Trade Register within 8 months after the financial period has ended
  • cash flow statements should be attached if two out of three conditions are satisfied for consecutive years:
    • turnover of at least €40,000,000
    • balance sheet of at least €20,000,000
    • employs at least 250 people
  • interim reports should be published semiannually
  • income tax return should be filed with the Tax Administration within 4 months after the financial period has ended
  • corporate income tax rate of 20%
  • turnover of at least €40,000,000
  • balance sheet of at least €20,000,000
  • employs at least 250 people

 

How much share capital is required to establish a private limited company (Oy)?

  • The minimum share capital for a private limited company is €2,500.

What other requirements are there for a private limited company?

  • at least one board director and one deputy
  • memorandum of association
  • articles of association
  • audit mandatory if two out of three conditions are satisfied for consecutive years:
    • turnover of at least €200,000
    • balance sheet of at least €100,000
    • employs at least three people
  • financial statements (profit and loss account, balance sheet & notes to the accounts) should be filed with the Trade Register within 8 months after the financial period has ended
  • income tax return should be filed with the Tax Administration within 4 months after the financial period has ended
  • corporate income tax rate of 20%
  • a local serviced office is advisable, click here for details

What other types of company are there?

  • general or limited partnership
  • private trader
  • branch of a foreign company

How easy is it to recruit staff?

Finland has one of the most advanced education systems in the world, and the workforce is highly skilled. Despite an unemployment rate of around 8.1% (October 2016), there are recruitment difficulties in certain sectors such as telecommunications and IT. It is worth noting that there are important labor regulations regarding employment contracts and so professional advice will be needed.

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