Company Formation in Finland
In Finland, all favorable conditions are created to do successful business. Based on the government support, Finland is on the list of the most attractive countries for doing business.
Non-residents are captured by two main benefits the country offers:
— the opportunity to present on the global market and actively promote the business on the European scale;
Thanks to good practices, experience gained, qualified theoretical knowledge, the experts employed by the Private Financial Services will quickly and qualitatively help to open and register the business activity in Finland.
— responsible attitude to each client;
— assistance all the time not only at the initial stage including in process of business formation and during current servicing;
— provision with continuous support;
— delivery of legal and economic recommendations.
CONDITIONS FOR BUSINESS OPENING
Prior to company formation in Finland, potential business owners should collect the complete package of documents as per the given list, to choose the legal corporate form and name of the enterprise.
The clients of the Private Financial Services are given a choice, whether to chose company formation in Finland from scratch or to take measures to obtain the right for the existing and registered company chosen from the catalog.
The employees of the Private Financial Services will share their knowledge on “bottlenecks” of legislation, they will provide legal support and help to save assets and time.
Pursuant to conditions of the anti-crisis and promotion offer, the clients shall initially pay thirty percent of the sum only of all services delivered. As all supporting registration documents are delivered, only then the remaining amount shall be paid out.
PUBLIC POLICY OF FINLAND
Finland does not belong to free economic zones, however, there is a range of requirements and conditions under which a company may rely on considerable advantages and benefits.
In 2015, the country found itself among the top ten world countries in the category “Ease of Doing Business.
Finland is ranked among the European countries that offer the best conditions to do business due to the developed transparent legislative base and stable economic situation in the country.
Any activity is allowed throughout its territory that is not prohibited by law.
To deliver banking and insurance services and to form the venture capital investment funds, the relevant license shall be required.
Foreign companies are restricted in certain ways when performing in the field of broadcasting, passenger transport (public transport), national postal delivery, and energy industry.
The name of the company shall not directly reflect the type of goods (services) delivered. Prior to registration, one should make sure in absence of any similar or equivalent names of companies registered.
FORMS OF BUSINESS ORGANIZATION
In Finland, the following legal corporate forms of commercial activity are in force:
Оsakeyhtio or Oy – Joint-Stock Company. The resident status is not the binding provision for the founder. A legal entity or a natural person may act as the founder. The amount of the authorized capital shall not be less than two and a half thousand Euros. Each shareholder bears the equal responsibility in proportion to the amount of contribution to the capital. The board created shall manage the company. The income tax rate for joint stock companies shall be 20% (twenty per cent). Such legal form of business is recommended for registration of most spheres of activity.
Toiminimi or T-mi − Private Entity. Only a natural person can register this form of activity. The major condition is the permanent residence within the territory of the European Economic Area. Two business areas have been developed:
— an individual entrepreneur who performs solely without any employees;
— commercial owners (employ other persons to work for the company).
Such structure is frequently chosen by small businesses with relatively small annual intra-entity turnover. One portion of the earned profit is taxed on earned income, the second portion is capital yields taxed.
Оsuuskunta or Ok − Cooperative Society. The main requirement to create the cooperative society is at least three members. They can be both legal entities and natural persons. The liability of founders shall be shared in proportion to their contributions. A 20 percent tax shall be payable on the profit earned. The structure of the cooperative is mostly suitable to social sector agencies.
Avoin yhtio or Ay − Unlimited Partnership. Two or more members shall be required to create the partnership. At least one of founders should reside within the European Economic Area. A partnership is chosen for doing family business. The amount of profit shall be distributed among all members and then is taxed similarly to the revenue of the private enterprise.
Kommandiittiyhtio or Ky – Limited partnership. To register a company, at least one responsible member shall be required who necessarily resides or has registered the business within the territory of the European Economic Area, as well as one contributor (without the right of voice). Tax base − rates are identical to those for PE; they are determined as the profit is distributed among all partners.
Filiali Finland − Foreign Company Affiliate. The status of the office should appear in its name.
Since 2014, the income tax rate shall be 20% (twenty per cent). Depending on location, the real estate tax varies from 0.6% to 1.35% of the cost of property. Payers of the Value Added Tax pay 24% (twenty four per cent) to the treasury.
The following benefits apply to other categories of tax payers:
- a rate of 14% (fourteen per cent) shall be paid by companies engaged in food production and animal forage. This category includes the restaurant and catering services;
- the trading in books, medicines and entrance tickets for cultural events, the company pays a tax of 10% (ten percent);
- zero tax rate is applied to goods selling and service delivery abroad.
Accounting and reporting
Pursuant to the applicable legislation in Finland, the company’s registration and its activities should be specified in accounting records. All forms of strict financial reporting shall be subject to publication and are reported annually to relevant state authorities.
BENEFITS OF ACTIVITIES IN FINLAND
The government of Finland promotes non-residents to do business. Flexible tax system, loyal state policy, access to the European market, prestige of the country, stable economy – all these promote profitable business in the country. Finland has concluded the Double Taxation Agreement with seventy countries and has developed the simplified registration model at best prices. The flow of investments into the region increases yearly.
The specialists of the Private Financial Services will select the most advantageous option of business registration in Finland, shall complete the registration procedure and communicate the package of documents via the DHL to the address specified.