Start a Business in Finland: A Practical Guide for Foreign Founders
Setting up a business in Finland is an opportunity to turn your ideas into reality in one of the world’s most transparent and stable markets. But understanding the legal, tax, and immigration implications can be difficult, especially if you’re unfamiliar with the Finnish system or legal terminology.
At Legally.fi, we guide you through the entire process: choosing the right business form, registering with authorities, preparing documentation, and understanding your obligations. Whether you’re self-employed or launching a limited company, our team helps ensure your business is built on solid legal ground.
Who Can Start a Business in Finland?
EU/EEA citizens: You can start a business freely with no additional permit.
Non-EU/EEA citizens: You need a valid residence permit that allows entrepreneurship (e.g., a self-employment permit or startup permit).
Students or employees: You may start a business if your residence permit allows part-time entrepreneurship. Always check the terms of your permit.
If you’re unsure about your permit category, we’ll assess your eligibility as part of our intake process.
Choosing the Right Business Structure
| Type | Suitable For | Key Features | Legally.fi Support |
|---|---|---|---|
| Toiminimi (Private Trader) | Solo entrepreneurs, freelancers, side hustlers |
• Simple to set up • Lowest cost • Full personal liability • Not ideal for scaling |
• Guidance on permits and tax prepayment • Templates for invoicing & contracts • Help transitioning to Oy later |
| Osakeyhtiö (Oy) (Limited Company) | Startups, founders, remote teams, investors |
• Limited liability • Attract investors • Separate finances • Requires accounting and board setup |
• Company formation package • Registered address option • Partnership accountant & legal aid |
| Avoin yhtiö (Ay) / Kommandiittiyhtiö (Ky) | Co-founders, family-run businesses, local partnerships |
• Easy setup • Shared or partial liability • Less flexible for investment |
• Contract drafting between partners • Risk analysis for liabilities • Recommend Oy if scaling expected |
Toiminimi (Private Trader)
Suitable For:
Solo entrepreneurs, freelancers, side hustlers
Key Features:
• Simple to set up
• Lowest cost
• Full personal liability
• Not ideal for scaling
Legally.fi Support:
• Guidance on permits and tax prepayment
• Templates for invoicing & contracts
• Help transitioning to Oy later
Osakeyhtiö (Oy)
Suitable For:
Startups, founders, remote teams, investors
Key Features:
• Limited liability
• Attract investors
• Separate finances
• Requires accounting and board setup
Legally.fi Support:
• Company formation package
• Registered address option
• Partnership accountant & legal aid
Avoin yhtiö (Ay) / Kommandiittiyhtiö (Ky)
Suitable For:
Co-founders, family-run businesses, local partnerships
Key Features:
• Easy setup
• Shared or partial liability
• Less flexible for investment
Legally.fi Support:
• Contract drafting between partners
• Risk analysis for liabilities
• Recommend Oy if scaling expected
Steps to Register a Business in Finland
Choose your business form and name
Verify name availability and ensure it complies with Finnish naming rules.Register with the Trade Register
Submit founding documents to the Finnish Patent and Registration Office (PRH) via the YTJ portal.Register for Taxes
Register for VAT, prepayment register, and employer obligations at vero.fi.Open a Business Bank Account
Needed for invoicing, taxation, and salary payments. Some banks may ask for a startup plan or business permit.Check Licences and Sector Rules
Restaurants, transport, health, and beauty services may need specific permits.Prepare for Reporting
Keep accounting records and file regular tax reports. Hiring an accountant is strongly recommended.
How Legally.fi Supports Your Business Journey
Business Form Advice: We help you choose the most suitable legal form based on your needs.
Document Preparation: We assist with founding documents, registration forms, and startup plans.
Permit Review: We check your residence permit to confirm business eligibility.
Partner Referrals: We connect you with accountants, tax advisors, or business mentors.
Language Support: We provide explanations, translations, and help understanding Finnish bureaucracy.
Example: Startup Formation for a Design Studio
A team of two international graduates wanted to launch a design company. Legally.fi helped them register an Oy (limited company), prepared the founding agreement, and referred them to a multilingual accountant. Their company was approved in 10 days, and they began invoicing Finnish clients legally and transparently.
Need Legal Support?
Use the form or WhatsApp to contact us.
Who is eligible to start a business in Finland?
Citizens of EU/EEA countries can freely establish a business in Finland. Non-EU/EEA nationals must possess a residence permit that permits entrepreneurial activities. Legally.fi assists in assessing your eligibility and guiding you through the necessary steps to establish your business legally.
What are the main types of business entities in Finland?
The primary business structures include:
Sole Proprietorship (Toiminimi): Suitable for individual entrepreneurs.
General Partnership (Avoin yhtiö, Ay): Formed by two or more individuals sharing responsibilities.
Limited Partnership (Kommandiittiyhtiö, Ky): Includes general and silent partners.
Limited Liability Company (Osakeyhtiö, Oy): Offers limited liability to shareholders.
Cooperative (Osuuskunta): Owned and operated by its members.
Legally.fi helps determine the most suitable structure based on your business goals and circumstances.
What steps are involved in registering a business in Finland?
The general steps include:
Choose a Business Name: Ensure it’s unique and complies with naming regulations.
Prepare Necessary Documents: Such as the Memorandum of Association and Articles of Association.
Register with Authorities: Submit applications to the Finnish Patent and Registration Office (PRH) and the Tax Administration.
Open a Business Bank Account: Required for financial transactions.
Obtain Necessary Licenses: Depending on your business sector.
Legally.fi provides assistance throughout this process to ensure compliance and efficiency.
What are the costs associated with starting a business?
Costs vary depending on the business structure:
Sole Proprietorship: Minimal registration fees.
Limited Liability Company: Registration fees range from €240 to €380.
Public Limited Company: Requires a minimum share capital of €80,000.
Additional costs may include notary fees, translations, and professional services. Legally.fi provides detailed cost breakdowns tailored to your business plan.
Do I need a Finnish address to register a business?
Yes, a Finnish address is required for business registration. Legally.fi can advise on meeting this requirement legally, especially if you’re relocating or applying from abroad.
What are my tax obligations as a business owner?
Businesses must:
Register for VAT: If annual turnover exceeds €15,000.
Submit Prepayment Applications: For estimated taxes.
File Regular Tax Returns: Including income and VAT reports.
Legally.fi connects you with accountants and helps explain these requirements.
Can I start a business while on a student or employee permit?
It depends on the terms of your residence permit. Some permits allow limited self-employment. Legally.fi helps interpret your permit conditions and, if necessary, assists in applying for an entrepreneur permit.
What is the process for obtaining a residence permit as an entrepreneur?
Non-EU/EEA nationals must:
Develop a Viable Business Plan: Demonstrating profitability.
Register the Business: With PRH.
Apply for a Residence Permit: Through the Finnish Immigration Service (Migri).
Legally.fi assists in preparing the business plan, registration, and residence permit application.
How long does it take to register a business?
The registration process typically takes:
Sole Proprietorship: A few days.
Limited Liability Company: 1 to 2 weeks.
Delays can occur if applications are incomplete. Legally.fi ensures all documentation is correctly prepared to expedite the process.
Do I need to speak Finnish to run a business?
While many services are available in English, knowledge of Finnish can be beneficial.
Legally.fi provides language support and translation services to help you navigate Finnish bureaucracy.
Can I operate my business from abroad?
Yes, if you do not need the residence permit, but you must have a registered address in Finland and comply with Finnish regulations. Legally.fi advises on meeting these requirements and maintaining compliance while operating remotely.
How can Legally.fi assist me in starting my business?
Legally.fi offers comprehensive services, including:
Business Form Advice: Helping you choose the most suitable legal structure.
Document Preparation: Assisting with all necessary documentation.
Permit Review: Ensuring your residence permit allows for entrepreneurship.
Partner Referrals: Connecting you with accountants, tax advisors, and business mentors.
Language Support: Providing explanations and translations to help you understand Finnish bureaucracy.