A company who's willing to start a business in Finland must first check the types of Finnish companies, in order to choose the one that best suits the type of business it’s covering it.
Private Person Carrying on Trade (yksityinen elinkeinonharjoittaja), or a private trader, is an entrepreneur member of EEA who establish a company in Finland. It’s responsible for paying the taxes and it’s free to withhold profit.
A Partnership (avoin yhtiö-Ay) in Finland is composed by at least two members (one of them must be a EEA resident).The profits are divided among the partners according to the number of shares they have (except the case when the partnership agreement dispose something else).There is no originally share capital required.
The Limited Partnership (kommandiittiyhtiö,-Ky) in Finland, must have at least 2 partners, one of them must be the general partner and one the 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 but doesn’t absorb the losses.
The Limited Company (osakeyhtiö-Oy) in Finland has the following attributes: the minimum share capital is 2.500 euros (cash or property) a person is sufficient to set up the company and the management is provided by the management board. It must be recorded at the Trade Register before the beginning of activity.
A Public Limited Company (julkinen osakeyhtiö-Oyj) in Finland is founded after registration in the Trade Register. It must have a share capital of minimum 80.000 euros (cash or property). At least one statutory person establishes the company. If the company has the share capital above 80.000 euro, the management board must have more than 3 members (more than 50% of them must be EEA residents) and a managing director. An Oyj must also provide semi-annuals reports and can be listed on the Helsinki Stock Exchange.
The basic difference between a Limited and a Public company is that only the Public Limited Company can trade or transfer the shares. They are both governed by the Companies Act (Osakeyhtiölaki, 21.7.2006/624).
A Branch of a Foreign Company (sivuliike ) it’s a society that operates in Finland even though it has it’s headquarters in another country. The branch representative must have a Finnish domicile and if it’s not an EEA member a special permission must be granted by NBPR.