Finland offers several types of business structures, including Private Entrepreneurship, Limited Liability Company (LLC), General Partnership, Limited Partnership, Public Limited Company, and Cooperative Association. Each form has its own legal and operational requirements, making it suitable for different business needs. For foreign entrepreneurs, the most practical and commonly recommended options are Private Entrepreneurship and the Limited Liability Company (LLC), as they are easier to establish, manage, and align well with the requirements for business immigration in Finland.
Open company in Finland
Foreigners can establish a company in Finland by registering it with the Trade Register under the Finnish Patent and Registration Office. To form a limited company, at least three board members are required, and one of them must be a resident of Finland or another EU/EEA country. This is also essential for obtaining an entrepreneur’s residence permit.
Applicants must have a valid Business ID before applying for the residence permit.
If a foreign individual plans to operate as a sole trader, they must already be a resident of an EEA country.
Company forms in Finland
Private entrepreneurship
Private entrepreneurship is a simple and affordable option for immigrants starting a small business in Finland. It has low registration costs, no required share capital, and full control for the owner. However, the entrepreneur is personally responsible for all company debts if financial issues arise.
Limited Liability Company
A Limited Liability Company (LLC) in Finland can be established by one or more shareholders and requires an initial share capital deposited in a bank. At least one board member must be a Finnish resident. Shareholders are not personally liable for company debts, making it a secure and reliable business structure for foreign entrepreneurs.
Process of company registration in Finland
01
Make a business plan
Prepare a detailed business plan outlining your business concept, core competencies, products or services, target customers, key partners, and the planned sources of funding for your operations.
02
Choose the form of enterprise
Select the most appropriate company structure in Finland based on your business goals and operational needs.
03
Register your business
Register your company with the Finnish Patent and Registration Office (PRH) and complete the required registrations with the relevant tax authorities.
04
Make a YEL
The entrepreneur must obtain YEL pension insurance or appropriate employee pension coverage as required by Finnish regulations.
How to make a business plan
Describe business idea
First, clearly define what your business will offer, who your target customers are, and how you plan to deliver your products or services. Then explain why customers need your solution and how your business stands out from competitors.
Specify your experience
You must demonstrate your skills, professional competence, and relevant previous work experience.
Your services or goods
Next, clearly describe the products or services your company will offer in Finland and explain how they stand out from competing options in the market.
Your customers
You should outline who your potential customers in Finland are, why they would choose your product or service, and what specific features or benefits they are likely to value most.
Operational plan
You must prepare financial projections for your company to demonstrate that the business is viable and capable of generating sustainable profit.
SWOT
Prepare a clear analysis outlining the strengths, weaknesses, opportunities, and threats related to your business idea to demonstrate its potential and challenges.
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