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Establish a Branch in Finland

Updated on Saturday 25th June 2022

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Establish-a-Branch-in-FinlandThe foreign companies have the possibility of performing economic activities through branches in Finland, but must be aware that this form of business is not considered a legal entity. The parent company is considered responsible for its actions. The management of a branch opened in Finland must be assured by at least one Finnish resident. 
 
If you are planning to open a branch in Finland, you are welcome to get in touch with our experienced company incorporation specialists. They can provide you with detailed assistance throughout the procedure to help you set up a branch in Finland
 

Registration of a branch in Finland

 
The registration of a Finish branch must be performed by the parent company’s representative or by an individual granted power of attorney, at the Finnish Trade Register. If you want to open a branch in Finland, you must know that the registration can be made electronically and requires some specific document. These are: the memorandum of association, the articles of association, the certificate of registration, and a standard application which must contain the following: 
 
  • - The branch’s name and its postal address;
  • - The type of performed business (not different from the line of business adopted by the foreign company);
  • - The foreign company’s name;
  • - The type of company;
  • - The name of the register where the foreign company was registered;
  • - The name of the person entitled to represent the branch (resident of Finland, Sweden, or an EEA country. If not, permission must be received from the National Board of Patents and Registration of Finland for appointing a representative from another country). 
 
If the company is from a country that is not a member of EEA, it must provide the special certificate received from the National Board of Patents and Registration of Finland. If the procedure is respected and all the documents are ready, the process of registration of the branch does not take longer than seven working days. So, if you want to open a branch in Finland, it is suggested to interact with our company formation experts. They can perform due diligence on your documentation to keep you on a fast track and help you set up a branch in Finland without causing any unnecessary delays. 
 

How does a non-EEA resident establish a branch in Finland?

 
As a non-EEA resident/organization, if you want to open a branch in Finland, the process is a bit different. Organizations or foundations from outside the European Economic Area (EEA) must apply for a permit from the Finnish Patent and Registration Office (PRH) to open a branch in Finland. To operate as a private trader in Finland, you must obtain a permit from the PRH, if you do not have a permanent residency within the European Economic Area (EEA). The Lugano Convention is the foundation for this approach. It is a convention on jurisdiction and enforcement of judgments in civil and commercial matters. 
 
If you are a non-EEA resident who is interested to set up a branch in Finland, you can get in touch with our company incorporation consultants. They can provide you with detailed assistance regarding how to open a branch in Finland as a non-EEA resident. 
 

Representative requirements for a branch in Finland

 
As described in the Act on the Right to Carry on Business, you can open a branch in Finland, but there are some requirements to fulfill. A foreign trader's branch must have a representative, as defined in section 6(3) of the Act on the Right to Carry on Business:
 
  • - The trader's representative is the individual who is authorized to receive the summons and other notices on the trader's behalf;
  • - The representative must be a resident of the EEA, if the trader is a foreign corporate body or foundation established under the laws of an EEA country and has its registered office (as defined in the statutes), central administration, or head office there;
  • - In all other circumstances, the representative must have a Finnish address.
 
If you are planning to open a branch in Finland, then you are required to hire a representative. Our company incorporation consultants can guide you in detail about the status and requirements of an elected representative. 
 

PRH permit application process for non-EEA citizens

 
As aforesaid, to open a branch in Finland as a non-EEA resident, you are required to obtain a permit. The steps to apply for a permit are given below. In an informal letter written in either Finnish or Swedish, you can ask for a permit. Your application should include the following information:
 
  • - The name of the parent company, its registered office, and the country in which it is situated;
  • - Kind of permit you want to apply for (i.e. permit to establish a branch);
  • - The branch's name, as well as the business ID, if the branch already has one;
  • - Justification for obtaining the permit;
  • - The applicant's or representative's postal address, as well as additional contact information;
  • - Signature and date of either a person authorized to represent the applying organization or a person authorized by him/her;
  • - The original general power of attorney or a certified duplicate of a special power of attorney must be enclosed if an authorized person signs the application;
  • - When reporting to the Trade Register regarding a topic for which the PRH has given a permit, please provide a certified copy of the decision on the granting of the permit, as well as the notification.
 
For further details regarding these steps to obtain a permit, you can reach out to our company incorporation experts. They can practically assist you to set up a branch in Finland. Furthermore, there is a €120 application fee for obtaining a PRH. It is due after a permission decision has been made, whether to approve or deny it.
 

Finland’s trade balance

 
To set up a commercial entity in a foreign state is a crucial decision. So, it is necessary to carry on with the plan after showing reasonable due diligence. Below you can find a recent rise in Finland’s trade balance:
 
  • - Finland's trade balance in 2020 was $1.05 billion, 154.24 percent more from the previous year;
  • - Finland's trade balance in 2019 was $0.41 billion, 111.88 percent less than in 2018.
 
Contact our company incorporation experts if you have made up your mind to open a branch in Finland. Our experts will provide you with comprehensive information and practical assistance in the incorporation procedure. 
 
In addition to this, if you cannot afford the rent for your office, you can get in touch with our experts. They can help you get a virtual office in Finland. You can also get guidance from our consultants regarding different virtual office packages. 
 
 

Meet us in Helsinki

Call us now at +44 203 287 0408 to set up an appointment with our lawyers in Helsinki, Finland. Alternatively you can incorporate your company without traveling to Finland.

As a BridgeWest client, you will beneficiate from the joint expertize of local lawyers and international consultants. Together we will be able to offer you the specialized help you require for your business start-up in Finland.

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