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Start-ups - Finland

Updated 07/2012

Legal requirements

The pursuit of some trades is restricted in Finland. These limitations are imposed by law.

  • Act on the Right to Pursue a Trade suomi

Legal forms for businesses

There are a number of different business forms. The business form influences the amount of tax paid, the division of responsibilities and how actions between the company and its owner are treated. It is worth investigating which form is the most suitable for your business.

  • Selecting a business form suomi

The most common business forms are:

  • sole trader;
  • general partnership;
  • limited partnership;
  • limited liability company;
  • cooperative.

Business activities and related rules

There are different rules for the different business forms, relating to the number of founders, the need for capital when commencing activities, division of liability, flexibility of activities, business continuity, distribution of profit and loss, and taxation.

  • To company founders suomi

Some trades require a licence.

  • Sector specific permits and notices suomi

It is worth familiarising oneself with the rules and regulations relating to businesses before setting up a new business.

  • FINLEX State legislation database suomi

Business plans and evaluation

When setting up a new business, it is worth preparing a business plan to explain the enterprise's activities.

  • Business plan suomi

There are different templates that can be used to design business prerequisites and viability. An eTool for compiling a business plan is available on the website of Enterprise Finland.

  • Business plan model suomi

To succeed, a new business needs a sound commercial strategy and secure financing.

Some standard requirements to be completed when setting up a business are the same as when opening a branch.

Administrative procedures

Joint service point

A shared service point is a single point of service where various forms required for setting up a business may be filled out and submitted online.

  • EnterpriseFinland - online service suomi

Registering a company

Business registration

The company must be given a trading name before the documents for setting up a new business are prepared and the business is registered. The business name is a symbol of the company, and should be easily identifiable.

New companies are registered in the Trade Register of the National Board of Patents and Registration (PRH). Companies can send their information for the registers maintained by the PRH and the Finnish Tax Administration on one form:

  • Trade Register;
  • Prepayment Register;
  • Employer Register;
  • VAT Register.

Further information on registering a company:

  • Starting up a business (Enterprise Finland online service) suomi
  • Trade Register suomi
  • Forms Finnish Business Information System (YTJ) suomi
  • Charters suomi
  • Start-up notification suomi

Social security

An entrepreneur's statutory social security includes a pension plan. Entrepreneurs may improve their social security, for example, with voluntary persona accident insurance, life insurance and unemployment insurance payments.

  • Insurances suomi
  • Entrepreneur's unemployment insurance suomi

An entrepreneur must insure himself against retirement, unemployment and death.

  • Insurances suomi

The company, as an employer, is obliged to deduct and pay income tax at the source, and social security payments to the tax authority.

  • Social security contributions and withheld tax suomi

Tax registration

Companies pay direct and indirect taxes for their business activities, such as value-added tax (VAT) and excise duty.

  • Business and private customers suomi

Companies that pursue a trade, agriculture or other profitable activity are registered in the prepayment register.

  • Prepayment Register suomi

Special procedures

National ministries issue business licenses. In some cases, a licence is not required, only written notification from the business owner.

Resources

Multilingual website thisisFINLAND providing information about Finland.

Finnfacts helps companies with international communication, publishes material on industry and business life, and organises visits to Finnish companies for journalists.

  • Finnfacts suomi

Check also the legislation on this topic in:

  • References

    Legal texts

    • Act on the Right to Pursue a Trade 27.9.1919/122 suomi

Living and moving in Europe

Still need help?

Still need help?

Enterprise Europe Network - Contact points

The Enterprise Europe Network provides businesses with information and advice through its local contact points. 

Choose your nearest contact point for personalized help and advice:

Further help

The Central Chamber of Commerce controls business sector benefits, including by means of influencing legislation and activities by the authorities.

  • Central Chamber of Commerce suomi

Suomi.fi is a website providing information about public services by subject matter.

  • Suomi.fi suomi

Important basic information about functioning of the Finnish society and about opportunities on offer for immigrants is available on Info Bank site in 15 languages.

  • Info Bank suomi

EnterpriseFinland provides information about starting up, growth, international expansion, taxation and developing of business operations of a company and guides in mergers and public funding related issues and provides information about mandatory issues of employers and employees.

  • EnterpriseFinland suomi

Employment and Economic Development Centres (TE Centres) offer regional guidance advice on developing businesses and financial services for employment and business. The centres provide support and guidance to small and medium-sized companies in different phases of their life cycles.

  • ELY Centres suomi

Employment and Economic Development Centres provide information and consultation services in business development and financing related issues that aim at improving employment and economic development. The Centres support and guide small and medium size companies in the various phases of their development

  • Centres for Economic Development, Transport and the Environment (ELY) suomi

Invest in Finland is a unit operating under the Ministry of Employment and the Economy and assists foreign businesses in finding business opportunities in Finland. Invest in Finland provides information about Finland as an investment object, develops and coordinates acquiring of national and foreign investments by networking with regional and international operators.

Finnvera is a state-owned financing company specialised in developing the activities carried out by Finnish companies in Finland, and promoting export and international expansion using various funding mechanisms.

  • Finnvera suomi

The Confederation of Finnish Industries (EK) represents the entire private sector and companies of all sizes. It aims to ensure common standards are maintained throughout the business world.

  • Confederation of Finnish Industries (EK) suomi

SOLVIT helps businesses deal with problems that arise when national authorities wrongly apply EU market rules.

If you wish to establish a business or perform temporary cross-border services in the EU/EEA area (the 27 EU member states, plus Iceland, Liechtenstein and Norway), turn to the ‘Points of Single Contact (PSC)’ – Members of the EUGO network – that will help you to complete all necessary administrative procedures on-line! Get the information you need and submit your applications to the responsible authorities online. You no longer have to worry about contacting several different authorities one by one – the PSC will do it for you!