How To Start A Business In Finland

Finland is known for being the happiest country in the world, as well as its gorgeous lakes, sauna-loving culture and Northern Lights.

But Finland is also becoming an attractive destination for entrepreneurs, especially those in tech and startups.

However, it’s important to go into starting a business in Finland with your eyes wide open. To help, we’ve pulled together a guide to help you prepare for your business move to Finland.

 

Why Start A Business In Finland?

 

There are a number of reasons that Finland is becoming a hub for international businesses. Some of these include:

Educated population: Finish people have a 100% literacy rate according to Education, which is the highest in the world and means the country has a robust, skilled workforce.

Government: Finland has a stable government, which means laws and regulations are unlikely to make drastic changes. This is appealing to business owners.

Cost of living: Whilst Finland isn’t cheap, it does have a lower cost of living than other countries in Western Europe, making it a good choice.

Multilingual: Whilst the official languages of the country are Finnish and Swedish, many people in Finland speak multiple languages. For English speaking business people, this can make it easier to network and integrate into this new country.

 

What Opportunities Are There For Startups In Finland?

 

Finland is rated as the 4th best place in the world to launch a startup. This is because it’s not only a hub of innovation, but collaboration too. It’s deeply embedded in Finnish society to value equality and contribute to society, making it a great place to work.

Finland also comes with a great work-life balance, allowing entrepreneurs to have the benefits of big cities like Helsinki, but enjoy the great outdoors too.

Additionally, the country’s low tax rates, high funding and reliable infrastructure, make it an amazing location for any aspiring business leader.

 

Taxes in Finland 

 

Finland has a corporate income tax rate of 20% which applies to a company’s profits.

This flat rate makes it easy for taxes to be worked out and abided by.

Finland also has a 30% capital gains tax rate for businesses with an income below €30,000, and 34% rate for businesses that earn more than €30,000.

The VAT rate in Finland is currently 24%, according to Finnish Tax Administration. Businesses must register for VAT when they have an annual turnover of about €10,000.

 

 

Do You Need A Visa To Start A Company In Finland?

 

Depending on where you hold citizenship, you might need a visa or permit to live and work in Finland.

• EU, Nordic, or EEA Citizens: You don’t need a residence permit but must register your right of residence.
• Non-EU Citizens: You’ll need an entrepreneur’s residence permit, which you can apply for through the Finnish Immigration Service.

 

How To Register A Business in Finland

 

Step 1: Choose Your Business Structure

Finland has a number of different company types. Here’s a quick look at some you can choose from:

• Sole Traders (Toiminimi): Simple, fast to set up, and perfect for sole entrepreneurs.
• Limited Company (Osakeyhtiö): The most common choice, set up as a company with capital.
• Partnerships & Cooperatives: For businesses with multiple partners or members, each with their own level of responsibility.

 

Step 2: Register Your Business

There are a few steps you will need to go through during the business registration process, including:

• Name selection: Make sure your business name is unique by checking through the Finnish Patent and Registration Office.
• Registration: Submit documents like the Articles of Association, Trade Registry forms, and a registration fee of €270 (online) or €380 (by post).

Processing usually takes up to three weeks.

 

Hiring And Managing Employees In Finland

 

Finland has a highly skilled workforce and salaries are usually competitive.

Many employees belong to trade unions, helping them negotiate Collective Bargaining Agreements that set minimum terms such as working hours, vacation days, and termination procedures.

According to Finnish law, maximum working hours in Finland are 8 hours a day and 40 hours per week.

Employees are also entitled to sick leave and annual leave of 25 days a year.

For maternity cover, mothers are paid for 105 working days.

 

Starting A Business In Finland

 

Finland, with it’s beautiful nature and masses of opportunities, can be a great place for entrepreneurs looking to break into a new market.

With the right preparation and information, entrepreneurs can set themselves up for success from the word go.

Good luck!