Finland Comapny Formation

Opening a company in Finland

Why start a company in Finland? What are the advantages in Finland?
Finland, a country that is part of the European Union, is a convenient solution for many entrepreneurs.

The local currency is the Euro (EUR), and living is very cheap in the country.

Finland is a convenient gateway to the European market, with cheap maintenance costs and a local market that understands the English language very well.

The country is in Northern Europe, as part of the Scandinavian countries, and this is a very important strategic location for operations of import/export to Scandinavia.

Finland is a perfect place for investments and business expansion. The Finnish government is keen to boost the economy.

All these factors, together with the country's international safety due to Finland's membership in NATO and the European Union, make Finland a reliable and important business partner for foreign investors.

The process of opening a company in Finland
Opening a company in Finland begins with the signing of a notarial power of attorney to open a company by a local agent. The document was then sent with a courier urgently to Finland to be handled by a local Finnish notary. After several processes in Finland, the customer is required to sign the application for registration in the commercial register, and again send the document to Finland. At this stage the company already exists legally and can start business activities.

In Finland a local director is needed but a local shareholder is not.

In Finland you also do not need any European citizenship to open a company. You can open a Finnish company even if you are a foreign citizen.

This means that it is possible to open the company with 100% shareholding in the name of a foreign citizen - in your name, or even in the name of a foreign company. The director can be foreign, but a local director will be needed.

The requirement for a local director for a limited company in Finland
In Finland, a local manager who lives in Finland is required to represent the company in the process of opening a bank account and registering with the tax authority.

Registration without a local director - "branch" (foreign company) in Finland
If you do not have a local director in Finland, you can register a foreign company in Finland. It is called a "Branch" or Branch and it is a common thing in all countries.
For the sake of illustration, the foreign company actually registers in Finland, like a kind of double registration, and receives a Finnish registration certificate. Such a company requires local representation, but not necessarily an official officer on behalf of the company in Finland. This is a proper and acceptable solution.

Opening a bank account in Finland - current account for the company
Since this is a European country, more or less starting in 2018, those who want to open a bank account are required to come to the country. Finland is very strict in this matter, and it is not possible to open a bank account without physically coming to the branch.

Equity Capital
In order to open the company, a minimum deposit of equity capital of 2,500 euros is required.

In Finland, it is required to make an actual deposit of the aforementioned amount of equity. Therefore, as part of the process, a bank account is opened for the purpose of depositing the equity.

After opening the bank account and depositing the equity capital, the company is opened and a company charter is issued from the commercial register (this is the Finnish certificate of incorporation).

After opening the company, you can use the bank account that was opened for the purpose of depositing the equity capital. In other words, the equity account becomes an active current account for all intents and purposes.

VAT registration
After the opening of the company, at the same time as the opening of the current bank account for the company, the registration of the new company in VAT will also be carried out. The company will receive a VAT number and can start trading.

Business registration number in Finland - Y-Tunnus
The Oy company always holds a business identity card, known as "Y-tunnus", which is the company's identity card and is required to run a business in Finland. A business identity card is usually granted shortly after the registration notice is submitted to the registry office. We will also perform this registration for you.

EORI number
If you need to, we can obtain an EORI number for you so that you can import or export with the company within Europe.
EORI is an abbreviation of Economic Operators Registration and Identification number.

Company maintenance
The company requires annual maintenance of payment of fees, annual submissions, local address (which we will provide for you), as well as submissions to the tax authority.
However, all costs in Finland are low due to the relatively cheap cost of living.

Tax in Finland
The corporate tax in Finland is 20%.
For sales to the local Finnish market, the VAT is 24%.

Questions and answers
Question: Is it necessary to physically fly to Finland to open a company in Finland?
Answer: The entire process is carried out remotely and at no stage is it necessary to physically come to Finland. There is no need to fly to Finland to open the company, nor the company's bank account. The entire process of opening the company and in most cases also the company's bank account, are carried out remotely without setting foot on Finnish soil.
Question: Who provides the local address for the company in New Finland?
Answer: We will provide the local address.

Question: How can I find a good accountant who can take care of the company in our new Finland?
Answer: We will connect you with a local accountant.

Question: If I want to come to Finland to open a bank account, what should I do?
Answer: We will try ahead of time to check the details for you in order to open an account, so that as many things as possible are arranged before you arrive.

Question: What kind of company in Finland should I open?
Answer: In Finland there are two types of associations:
The first type is a limited liability company ("osakeyhtiö - Oy"). This is the usual limited company we know.
The second type is "branch". In English it is called Branch.
This type is basically a registration process in Finland of some foreign company.

Question: Do you need a European passport to open a company in Finland?
Answer: There is no need for a European passport. We can open a company in Finland for any foreign citizen as long as he has a valid passport.

Question: How long does it take to open a company in Finland?
Answer: The process of opening the company, including signing the power of attorney and sending it, should take about 4 weeks. After that, the process of opening the bank account takes between about a week maximum, assuming that the customer physically arrives in Finland, and this is in accordance with the readiness of the banks to accept the new company as a customer. Of course, these are times that depend on third parties, so this is only an estimate.

Question: Is it possible to open a company in Finland for a person with American citizenship or a person living in the USA?
Answer: Yes. We know how to open a company in Finland for a person with American citizenship or a person living in the USA.

On the face of it, it seems trivial that a person with ties to the USA could open a company in Finland, but we assure you that this is not the case. Today, all banks in Finland without exception refuse to open an account for a new Finnish company if its owner has any ties to the USA. Therefore we are probably the only ones, and certainly one of the few in Finland, who know how to open a company in Finland for a person with American citizenship or who lives in the USA.

Question: Is it possible to define that any foreign company will be the subsidiary of a company in Finland?
Answer: Yes, absolutely, we know how to do such a process with the foreign Registrar of Companies without any problems and in a completely smooth manner.

Question: How much does it cost to open a company in Finland?
Answer: Click here and get in touch and get a current quote without obligation!