Finland is a highly-developed country with enormous opportunities for doing business. Small businesses may find Finland a bit costly, but it can ensure good gains, including in financial sectors.
Forms of Legal and Business Presence
If you consider Finland as your potential destination for your investments, you may establish your legal and business presence in one of the following forms:
- Limited Liability Company – a vehicle where the liability of founders (shareholders) is restricted to the amount of their investments only. They don’t bear any extra liability for the vehicle’s undertakings within their personal property.
- Public Limited Company – an entity that provides an opportunity for transferring shares to the public and raising capital this way. The liability of founders (shareholders) is restricted to the values of contributions made to this entity.
- General Partnership – a business formation established by general partners who are entirely and jointly liable for all partnership’s undertakings.
- Limited Partnership – a business formation that can be established by (i) at least one general partner who bears unlimited liability for all partnership’s undertakings and (ii) silent partners whose liability for all undertakings is restricted to the value of contributions only.
- Branch Office – this business option may be especially suitable if you intend to test local business opportunities without substantial transactional costs.
Registration Requirements and Steps
If you consider an option of company formation in Finland, you may need to complete these preliminary steps:
- Defining your business priorities and composing a business plan.
- Choosing the business name for a future company.
- Collecting information about founders and beneficiary owners.
- Arranging the registered address for a future vehicle.
- Drafting statutory documents.
- Submitting the set of registration documents to the Companies House for the registration in the Trade Register.
- Registration for tax and social security purposes.
- Opening a bank account.
Legal and Regulatory Framework
The legal framework for running a business is one of the most favorable in the world. The country has high compliance and social standards. Zero tolerance for non-compliance and corruption ensures a very advantageous environment for doing business.
Finland constantly takes steps to promote business. This includes investment promotion in various forms and the development of modern industries, including the financial sector.
The main legal act regulating the procedure of the company formation in Finland is the Foundations Act, Limited Liability Companies Act.
Advantages of the Jurisdiction
If you intend to open a company in Finland, you may potentially enjoy these benefits:
- Openness to major European markets
- Political and economic stability
- Certain incentives for doing business, including tax
- Corporate income tax (CIT) rate – 20%
- Personal income tax (PIT) rate – 35% for non-residents
- VAT – 24%
- Withholding tax rates – may strongly vary, types of recipients and payers should be considered
- Capital gains tax rates – (i) corporate – equals the standard CIT rate (ii) individual – 30% or 34%.
How Prifinance Specialists May Help You
If you consider Finland as your potential target jurisdiction, privacy specialists may consult you more precisely to determine whether it can assist you in pursuing your business objectives as well as suggest alternatives. We will be glad to consult you more precisely on the peculiarities of the registration procedure and running a business in Finland, open a bank account for a future vehicle, and assist in resolving any further matters that may arise. Please contact us as soon as possible for more detailed discussions.