General Partnership Ay and Limited Partnership Ky in Finland

An Ay or Ky allows two or more founders to operate a business with a shared structure and flexible responsibilities. These forms are widely used by partners who trust each other, work in the same trade or want a simple alternative to a limited company. Legally.fi prepares the partnership agreement, advises on liabilities and registers the company correctly with PRH and the Tax Administration.

Drafting tailored partnership agreements
Registration with PRH through the YTJ system
VAT, employer and prepayment tax setup
Liability analysis for general and silent partners
Eligibility checks for foreign founders

Understanding Ay and Ky Structures

A General Partnership Ay requires at least two partners who share responsibility for decisions, obligations and finances. A Limited Partnership Ky includes one general partner with full liability and at least one silent partner whose liability is limited to their investment. Both forms are more flexible than a limited company but require a clear partnership agreement to prevent disputes.

Ay vs Ky Comparison

Feature	Ay	Ky
Minimum Partners	Two general partners	One general partner and one silent partner
Liability	All partners personally liable	General partner liable, silent partner limited to investment
Taxation	Partners taxed personally on income	Similar, but silent partner receives profit share
Best For	Operational partners working together	Investors plus active founders
Permit Requirements	Non EU founders need a permit allowing entrepreneurship	Same requirement applies to general partners

Key Steps to Register an Ay or Ky

Drafting a partnership agreement covering roles, liabilities and profit sharing
Submitting formation documents to PRH via YTJ
Registering for VAT, employer obligations and prepayment tax
Opening a business bank account and preparing internal rules
Assessing residence permit requirements if founders are non EU

Register Your Ay or Ky

Provide your details to begin formation. We prepare your partnership agreement and complete all registration steps.

Phone/WhatsApp: +358 44 979 3978

Office hours: Mon to Fri 09:00 to 17:00 (EET)

Frequently Asked Questions

Do Ay and Ky require share capital?

No. There is no minimum capital requirement.

Can a silent partner in a Ky work in the business?

If they work actively, they may be treated as a general partner. We structure this correctly.

Can non EU founders register an Ay or Ky?

Yes, but only if they hold a residence permit that allows entrepreneurship.

Is a partnership agreement mandatory?

Legally no, but in practice essential. We draft a tailored agreement to prevent conflicts.

How are profits distributed?

According to the partnership agreement. Silent partners receive an agreed share in a Ky.

Can we convert into an Oy later?

Yes. We assist with restructuring when the business grows.

Do partnerships need bookkeeping?

Yes. Standard accounting rules apply. We can refer you to accountants.

Are partners personally liable?

Ay partners are fully liable. In Ky the general partner is liable.

Can an Ay or Ky hire employees?

Yes, once registered as an employer.

Do I need a Finnish address?

A domestic service address is required. We advise on options.

General Partnership Ay and Limited Partnership Ky in Finland

Understanding Ay and Ky Structures

Ay vs Ky Comparison

Key Steps to Register an Ay or Ky

Register Your Ay or Ky

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