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Types of Companies in Finland

Updated on Thursday 27th January 2022

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Types of Companies in FinlandA company willing to start a business must get a detailed description of the types of Finnish companies to choose the best business structure. The first thing you should do in establishing a company is to select the type of companies in Finland you want to develop. Some companies require more paperwork and are more challenging to install than other types. It is advisable to do your research and get professional guidance to help you choose the best from various company types in Finland. Partnerships, private entrepreneurs, co-operatives, and limited companies are among the various types of companies in Finland.
 
If you want to start a business in Finland, you can get in touch with our expert team members. In addition to company formation, our team members can also help you get a virtual office for your business. Having a virtual office in Finland means avoiding the expenses of commercial places. For more details in this regard, interact with our team members. 
 

Companies in Finland

 
Private Person Carrying on Trade (yksityinen elinkeinonharjoittaja): A private trader is an entrepreneur member of EEA (European Economic Area) who establishes a company in Finland. It is responsible for paying the taxes, and it is free to withhold profit;
 
Partnership in Finland (avoin yhtiö-Ay): It comprises at least two members (one of them must be an EEA resident). The profits are divided among the partners according to their shares (except when the partnership agreement dispose of something else). There is no initial share capital required;
 
Limited Partnership in Finland (kommandiittiyhtiö-Ky): It must have at least two partners; one must be the general partner, and the other is a silent partner. The general one has the right to contribute to the management's decisions and ask for profit, unlike the limited one. The silent one has no decisional power and also does not absorb the losses;
 
Limited Company in Finland (osakeyhtiö-Oy): This structure has the following attributes:
 
  • - The minimum share capital requirement has been abolished
  • - A person is sufficient to start a company in Finland;
  • - The management board provides the management;
  • - It must be recorded at the Trade Register before beginning an activity.
 
 Public Limited Company in Finland (julkinen osakeyhtiö-Oyj): It is founded after registration in the Trade Register. It must have a share capital of 80.000 euros (cash or property). The company must have at least one shareholder. If the company has a share capital above 80.000 euros, the management board must have more than three members (more than 50% of them must be EEA residents) and a managing director. An Oyj company structure must also provide semi-annual reports and be listed on the Helsinki Stock Exchange. The essential difference between a Limited and a Public company is that only the Public Limited Company can trade or transfer the shares. They are governed by the Companies Act (Osakeyhtiölaki, 21.7.2006/624);
 
Branch of a Foreign Company in Finland (sivuliike): It is a society that operates in Finland even though it has its headquarters in another country. The branch's representative must have a Finnish domicile, and if it is not an EEA member, special permission must be granted by National Board of Patents and Registration (NBPR);
 
Private entrepreneurs (toiminimi): A private entrepreneur-style business is the most straightforward method to establish your business in Finland. It permits you to obtain an ID for your company and bill customers without a lot of expense or effort. They are simple to operate and require minimal documentation compared with other businesses. Among various types of companies in Finland, it is ideal for small-sized companies that do not need a lot of traveling, investment, or even multiple employees. One possible drawback is that any loans you take for financing company types in Finland have to be done in your name and not under the business. If you borrow money and cannot repay the loan, you will have to declare bankruptcy on your own;
 
General Partnership (Avoin Yhtio, AY): The General Partnership must be formed by two persons who start a business by signing a partnership contract. This company structure benefits those entrepreneurs who do not have a minimum required capital, and the partners are all equal throughout the business's activities. The major drawback is that every partner is responsible individually and indefinitely for all obligations to the company, decisions, and liabilities;
 
Co-operative (osuuskunta): The term "co-operative" can be described as a type of business owned by its members. It is a good choice for a collaborative company, a group of individuals who wish to work for themselves but do not want to set up the business as an individual, such as the artists or massage therapists. The Board of Directors, selected by co-operative members, establishes the rules and guidelines. A General Meeting/Board of Representatives manages the administrative tasks. The co-operative form of company can also hire an accountant to take charge of member's finances. Among various types of companies in Finland, this business structure has more than five thousand diverse industries;
 
Ltd company (sakeyhtio): The limited-company structure is a great option to organize your business if you intend to invest large amounts of money, are planning to employ staff, or expect to make a high profit. It is also a great option to limit the risk and cut down on the tax burden. Having a limited company can pay dividends to shareholders and yourself with a lower tax rate than the income tax. You can establish the limited type of companies in Finland by yourself or others. 
 
If you decide to do it yourself, you must name an additional member. It is also necessary to put aside enough funds to cover the initial expenses. The Finnish government provides many starting grants to aid you in your endeavor. Establishing a limited company type in Finland is a lengthy process that requires lots of paperwork. Therefore, it is advisable to seek advice from a professional and reliable entity. So, for company formation in Finland, you are welcome to interact with our experts. Our company incorporation experts in Finland can help you with assistance in the whole process.
 

Setting up a subsidiary in Finland 

 
To set up a subsidiary in Finland, please follow these steps:
 
  1. Select which company type in Finland you can establish appropriate to what you want to achieve with your company and your objectives. The most popular choice for foreign companies to set up subsidiary companies is a private limited liability company. Other options include the public limited liability company, general partnership, limited partnership, or the chance of a branch office;
  2. Select a name for your company exclusive to Finland and contain the suffix 'oy' to indicate the private liability corporation;
  3. It does not need a share capital. If the share capital is present, pay the money before the registration;
  4. Make the incorporation documentation, including Memorandum of Association, Articles of Association, and Trade Register Notification. The fees for essential statutory documents vary between 2,500 and 4,500 euros. Trade Register registration fee is 380 euros;
  5. Must submit documents for the Trade Register and Central Tax Administration. The papers should be in Finnish as well as Swedish;
  6. Alongside the Trade Register, companies must be enrolled in various Registers in the Tax Administration, including the VAT Register, Pre-Payment Register, Employer Register, and the Social Insurance Institution.
 
Besides a subsidiary, if you want to open a branch in Finland, you can get in touch with our company formation experts in this country. 
 
 

Company statistics in Finland

 
 
  • - Services has the most firms registered in Finland, with 176,693 companies;
  • - Finance, insurance, and real estate have 153,021 companies;
  • - Agriculture, forestry, and fishing have 93,211 companies registered in Finland.
 
Contact our expert team members if you want to register a company in Finland. Our expert team members can provide you with comprehensive assistance in this regard. 

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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