News: Registration of company in Finland

Finland is a state in Northern Europe with population of about 5.5 million people. Finland shares border with Russia, Sweden, Norway and Estonia. The area of the state with water and land territories is about 340 thousand km2.

Despite the fact that Finnish and Swedish are official languages in Finland, Finns mostly speak English.

Finland is the member of the EU. The capital is Helsinki.

The monetary unit is the euro.

Today, more and more entrepreneurs are tending to register company in Finland. Let's consider the main reasons, why registration of business in Finland or buying company in Finland is cost-efficient:

- political stability;

- significant economic potential of the country;

- flexible tax legislation;

- good geographical position;

- possibility to obtain a residence permit.

Forms of doing business in Finland

You can use the enterprise in one of the following forms for business registration in Finland:

· yksityinen elinkeinoharjoittaja/yksityinen toiminimi (T-mi) — either self-employed person or sole proprietor;

· avoin yhtio (Ay) — general partnership;

· kommandiittiyhtio (Ky) — limited partnership;

· osakeyhtio (Oy) —joint stock company;

· osuuskunta (Ok) — cooperative;

· rekisteroity yhdistys (Ry) — corporation.

Currently, according to the laws of Finland, the person who does not permanently reside in any of the EU countries can act as the entrepreneur, the participant of general or limited partnership, the founder of joint stock company exclusively upon the permission of the Ministry of Trade and Industry of Finland.

Today, the most prevalent form of doing business in Finland is joint stock company (Oy).

How to register the joint-stock company in Finland

• The founders of the "Oy" company can be natural and/or legal persons, not excluding foreigners. There is no necessity in drawing up the Charters, it is sufficient to fill in the standard forms.
• Minimum authorized capital equals to EUR 2500. After registration of the company, the whole amount should be paid. After that, the resources from the statutory fund can be spent on the needs of the company (expenditures for hotels, business trips, etc.). You can draw out almost the entire amount, about $ 500-700 should remain on the account to maintain favourable balance.
• The system of governing bodies is the managing board in the form of the Board of Directors. At the same time, the position of the General Director is not obligatory. And the number of participants of the board is not limited.
• It is necessary to register company in Finland in the trade register (that is located in the main patent and registration office).
• When submitting documents, the owner of the enterprise can obtain registration certificate (Diaaritodistus) with the registration number. Such document substitutes the certificate on registration of the company in Finland, and bank account can be opened and other actions stipulated by the legislation can be performed in virtue of it. Separate fee will be charged for the registration of the subsidiary name of the company, and it can reflect one of the directions of the company's activities.
• The entrepreneur and the company shall be registered with the tax office. To this end, it is necessary to fill in and submit to the tax office (at the place of residence or company registration) the form with notice of the commencement of activities.
• In order to establish representative office or branch without obtaining the status of legal entity, it is needed to receive special permit, and submit it to the Main Department of Patents and Registrations with the application regarding registration.
• When acquiring a block of shares of the company or the entire company, it is necessary to file a request for the registration of the deal. This shall take one month from the moment of its conclusion. The Ministry can come up with negative response (if, for example, the transaction contradicts public policy, etc.), then the matter can be referred for consideration of the state council, and the deal can subsequently be terminated.

Pay attention that there are almost no facts of smashup of business and winding-up of industrial enterprises in Finland. The state supports employers in order to protect employees.

Bookkeeping in Finland

The company is obliged to submit annual financial report.

Taxes on business in Finland

• Taxation of business in Finland is by no means difficult.
• If the company received revenue (and this is evidenced by the financial report regarding results of the year), then the income tax will equal to 20%.
• If by decision of the meeting this income is paid in the form of dividends to the participants of the company, then no income tax is charged.
• Taxable income is calculated after the cost incurrence at the end of the fiscal year.
• The following is not subject to VAT:

- sale of goods abroad;

- provision of services abroad.

• At the same time if the good is purchased with VAT included, the tax is refunded to the company.
• All services and goods purchased for the needs of the company are also bought without VAT (24% cheaper).
• In Finland, there is no property tax.
• Finnish company which has a branch abroad accounts for its activities according to the same principles as in Finland. And if there is income at the end of the year and no dividends are paid from it, it is necessary to pay taxes on the company's profits in Finland.

Let’s also consider the other forms of business organization in Finland.

Registration of the Sole Proprietorship

This organizational and legal form is the most acceptable when the basis of business is the professional skill of the entrepreneur himself. In order to establish company, his own capital is used, and no external assistance is required (e.g. doctors, lawyers, hairdressers, etc.)

In order to work as sole proprietor, foreign citizens shall obtain the permission from the Ministry of Trade and Industry. In this case the entrepreneur is responsible for his activities with all his property. And before starting his activities, it is necessary to prove that the businessman is able to bear certain material responsibility.

Registration of the General Partnership

This form is suitable if several people are actively involved in business and conduct commercial activities. At the same time, it is important that the partners have confidence in each other.

In order to establish partnership, participation of at least two persons, either natural or legal ones, is required.

The constituent document is the agreement on foundation of the partnership. It is drawn up in writing.

The following is recommended to be included in the agreement:

- name of the partnership;

- its location;

- sphere of activity;

- information about partners (the amount of their contributions, the right to sign on behalf of the company, the allocation of responsibilities);

- reporting period and audit;

- principle of distribution of profits and losses;

- termination procedure and means of changing the constituent agreement and other issues.

Partners of the general partnership, in the absence of residence in the EU countries, are required to obtain permission from the Ministry of Trade and Industry. However, the partnership shall have indwelling representative in Finland. The partners are responsible for the obligations of the partnership also with their personal property.

We will register ready made company in Finland for you within the shortest time possible. It has never been easier to buy company in Finland. Registration of company in Finland is one of the simplest and cheapest ways to start a legitimate international business.

We will specify all the information regarding the offshore zones in Finland for you. Registration of companies in Finland is one of the main directions of our work.