Finland has an inviting business environment for many entrepreneurs as the company formation is relatively easy, the market has
wealthy consumers, and as part of the Nordic ecosystem it has good connections with the rest of the world. International
companies are welcome in Finland, and entering the market is easy. Establishing a company usually takes only a couple of weeks,
and the vast majority of services are in English with plenty of information available. Other aspects in Finland also make the
company formation easy for foreign entrepreneurs.
1. The Requirement for Minimum Share Capital
Since 1 July 2019, Finland no longer has the minimum share capital requirement for private limited companies (or Oy-s) which used to be 2500 € before this amendment in the Limited Liability Companies Act was confirmed. This change has made the company formation easier for foreigners as there is no need to travel to Finland anymore to immediately open a bank account that was necessary to deposit the share capital. Therefore, one of the main obstacles that delayed the company formation process has now been removed.
That has streamlined the company establishment through automation of registration and the company’s digital reporting. These changes aimed to ease the company formation for micro and small-sized companies by lowering the personal responsibility associated with the expenses of setting up a company. Unlike in Estonia, distributing dividends does not depend on whether you have made the share capital payment or not. However, this change only applies to private limited companies, as public limited companies still have the minimum share capital requirement of 80 000 €.
2. Take Advantage of the e-services
There are a variety of Finnish e-services that can be accessed and used by foreigners after completing the free e-authorization process in the Finnish Authenticator app. The current identification service by Katso can still be used until 31 December 2020 but starting from 1 January 2021, e-authorization service is to be provided by Suomi.fi. The foreigners who have been using the Katso service will have to register an account on the Suomi.fi website and follow the authorization process in the Finnish Authenticator app to continue using various e-services.
It is also important to go through this process if you are using the services of an accountant who has to submit the declarations in the Finnish Tax Administration and Incomes Register on your behalf.
The examples of organizations that use e-services you need or might find useful as a company owner, include the Finnish Tax Administration, Incomes Register, Business Finland, ELY Centre, Ministry for Foreign Affairs of Finland, and many more.
3. Various Funding Opportunities to Grow Your Business
There are multiple opportunities to get grants or loans to grow your Finnish company. For example, Business Finland has many different funding programs to cover a range of circumstances, depending on your company’s needs. The fundings are intended for startups that are aiming for international markets, small and medium-sized companies that want to develop their activities and boost export, or large companies that are looking to renew themselves or carry out research.
There’s plenty of information on the Business Finland site that will help you decide which grant or loan meets the criteria and needs of your company. For example, an innovation voucher can be applied to buy innovation expertise, Tempo is meant for companies that are aiming for international growth, and a research and development grant or loan helps to develop a service, product, process, or business model. Of course, there are multiple other options available on the website.
4. 90-Day Helsinki Relocation Package
Are you looking to start a company in Finland and relocate to Helsinki? Then this opportunity might be just the right fit for you. Helsinki Business Hub has a unique 90-day Helsinki Relocation Package to help international talent feel at home in Helsinki. This means that selected applicants will have arrangements for all the documentation needed for a 90-day stay, airport pickup and orientation services, housing, daycare, schooling, and everything else needed for you and your family to get settled. A full 90-day Finnish experience for you and your family that could be beneficial if you’re planning on moving to Helsinki.
5. A Strong Support System and Vast Amount of Information
- Helsinki Business Hub
Helsinki Business Hub provides free advice on various topics for foreign companies if you are interested in conducting business in the Finnish capital region. They can help you get connected with the right people or Finnish companies based on your business needs as they have a long list of trustworthy partners who provide various services from accounting to marketing and co-working spaces. 1Office is also Helsinki Business Hub’s partner, and we are happy to help if you need assistance with company formation, legal address, accounting, or tax registrations.
You can contact Helsinki Business Hub if you need information about your business area, relevant public authorities, operating environment, costs, and so on. They can share information about public financing meant for foreign companies that do business in Helsinki or private international investors for Finland-based startups.
Suomi.fi offers various information about different aspects for businesses in Finland, such as starting a company, responsibilities and obligations, financing a business, and more. They also share the latest news important for Finnish companies, such as updates in the laws and regulations.
Finland is a world-leading technology hub and has a trustworthy business environment that makes it desirable for many foreign entrepreneurs. The company formation has been made easy for foreigners as there are numerous e-services, fundings, and information available, and no requirement for minimum share capital.
If you want to open a business in Finland, then we have multiple options available to make the process easier for you. You can either register a business in just 20 minutes in my1Office platform or order a full company formation package with a legal address for one year and tax registrations. Additionally, you can order services such as accounting, insurance, and banking solutions. Contact us if you are interested in finding out which services are best suited for your needs.