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How to Start a Business in Finland as a Foreigner

Finland is recognized as a stable, business-friendly country with a transparent regulatory environment and a highly educated workforce. Foreign entrepreneurs are increasingly drawn to its strategic location in the European Union, its proximity to key markets like Russia and the Nordic-Baltic region, and its advanced infrastructure. Whether you’re a startup founder or an established business looking to expand, Finland offers excellent opportunities for success. However, navigating the process of starting a business in a new country can be complex.

This is where Scandicorp steps in, offering expert corporate services to foreign entrepreneurs. Scandicorp guides you through every step, from company formation to handling ongoing legal and tax obligations, ensuring a smooth and compliant entry into the Finnish market.

Legal Steps to Starting a Business in Finland

What are the Basic Legal Requirements?

Starting a business in Finland involves specific legal steps, primarily focused on registration and compliance. The Limited Liability Company (Osakeyhtiö or Oy) is the most common business structure for foreign entrepreneurs. It offers flexibility, limited liability for shareholders, and a streamlined process for growth.

To establish an Oy, the following requirements must be met:

  • A minimum of one director, and if there are fewer than three directors, a substitute must be appointed.
  • At least one director must reside in the European Economic Area (EEA).
  • The company must have a registered office in Finland.
  • No minimum share capital is required for private limited liability companies.

Scandicorp ensures that your company structure complies with Finnish regulations, assists in drafting the necessary documentation, and takes care of the legal filings with the Finnish Trade Register, so you can focus on your core business operations.

Required Documents for Company Registration

To formally register your business, you’ll need to submit:

  • A Memorandum of Association.
  • Articles of Association.
  • Minutes from the founding meeting.
  • A copy of the registration form and proof of any required share capital.

Scandicorp manages the entire documentation process, ensuring accuracy and legal compliance, allowing you to avoid any potential pitfalls in the registration process.

Can a Foreigner Own 100% of a Business in Finland?

Yes, a foreigner can fully own a business in Finland. There are no restrictions on foreign ownership, and you are free to own 100% of the company shares. However, it is mandatory to have at least one director or managing director who resides within the EEA.

If you don’t meet the residency requirement, Scandicorp provides local directors and registered office services, ensuring your business complies with Finnish legal requirements while you maintain full ownership and control of your company.

Visas and Residency Permits for Entrepreneurs

Entrepreneur Residence Permit

Foreign entrepreneurs who intend to run a business in Finland must obtain an entrepreneur residence permit. To qualify, you must:

  • Own a share of the business.
  • Show that the business has sufficient financial resources and is viable.
  • Submit a solid business plan to the Finnish authorities, demonstrating that your business will contribute to the economy.
Golden Visa Option

Finland also offers a “Golden Visa” program for investors, allowing residency based on significant financial investments in Finnish businesses or property.

Scandicorp assists you with the entire visa and permit application process, helping you prepare your business documentation and demonstrating the financial viability required for obtaining the necessary permits. Our experts ensure that you meet all the immigration requirements efficiently.

Company Registration Process

How to Register a Company in Finland

To register your company in Finland, you need to:

  1. Submit a registration form to the Trade Register.
  2. Open a Finnish bank account and deposit the share capital (if required).
  3. Pay the registration fee and submit the required documents to the Trade Register.

Typically, registration takes 2 to 3 weeks, depending on the complexity of the business and the completeness of the documentation.

Scandicorp manages the entire registration process, from opening bank accounts to submitting paperwork, ensuring a smooth and efficient incorporation. We minimize the risks of delays by ensuring that all legal formalities are fulfilled.

Understanding Finland’s Business Environment

Why Finland is Ideal for Entrepreneurs

Finland consistently ranks high in global business rankings due to its innovation-friendly environment, strong infrastructure, and educated workforce. It offers easy access to European and Nordic markets, making it an excellent base for expanding into the region.

Finland’s economy is known for its cleantech, ICT, and gaming industries, presenting significant opportunities for entrepreneurs. With its emphasis on sustainability and technological advancement, Finland is a hub for innovation and research.

Scandicorp helps foreign entrepreneurs connect with local networks and industry players, making it easier to integrate into Finland’s vibrant startup ecosystem. We also provide access to key government incentives and resources for business growth.

Navigating Tax Obligations

Tax Considerations for New Businesses

Finland’s corporate tax rate is 20%, making it competitive within the EU. Companies must also register for VAT, which has a standard rate of 24%. Additionally, businesses must file annual tax returns and financial statements.

Scandicorp offers expert tax planning services to ensure that you meet all your tax obligations, while also taking advantage of available tax deductions and benefits. We manage your VAT registration and help with ongoing tax filings.

Industry-Specific Regulations

Some industries in Finland, such as financial services, healthcare, and pharmaceuticals, have specific licensing requirements. These industries are regulated, and businesses must apply for the appropriate licenses before commencing operations.

Scandicorp helps you identify the necessary licenses for your industry and assists with the application process, ensuring that you remain compliant with Finnish laws.

Benefits of Partnering with Scandicorp

Comprehensive Corporate Services: Scandicorp provides a full suite of corporate solutions tailored specifically for foreign entrepreneurs. Whether you need assistance with company formation, tax compliance, or local representation, Scandicorp has the expertise to ensure a smooth market entry.

 

Scandicorp’s Unique Offering:

  • Company formation and legal compliance.
  • Registered office and director services.
  • Tax planning and accounting.
  • Access to local partnerships and government incentives.

Last words

Finland offers a wealth of opportunities for foreign entrepreneurs looking to start or expand their businesses. Its favorable business environment, competitive tax structure, and strategic location within the EU make it an ideal destination.

By partnering with Scandicorp, you’ll benefit from expert guidance through every step of the process, from incorporation to ongoing administration. Let Scandicorp help you build a successful business in Finland by providing the local expertise and support you need.

Contact Scandicorp today for a personalized consultation, and get started on your journey to business success in Finland.