Finland

In terms of economic performance, Finland is among the most successful member states of the European Union. The standard of living of Finns is high. All of Finland's macro­economic data are favorable (low inflation and unemployment, surplus budget and active trade balance).

Why think about doing business in Finland

Time-saving. Many companies that want to expand to Northern Europe choose Finland precisely because establishing a company there is a relatively simple and time-saving operation. The process takes 1–3 weeks.
Finland is known for its political stability and predictability. Since security is a priority for any business, this is an important benefit.

Surveys show that Finland offers good infrastructure, a highly innovative environment, easy access to the Nordic, Baltic and Russian markets, a stable macroeconomic environment and a highly skilled workforce. In short, Finland is a really good choice for serious business.

The most common type of company in Finland is an Osakeyhtiö (Oy), the UK equivalent of a limited liability company or our limited liability company. This is a model suitable for both small and large companies. Only one shareholder is required, who in this case will be the 100% owner of the company (however, pay attention to the minimum required capital, which is €2,500, €80,000 for companies tradable on the stock exchange). For more privacy, you can use nominee services for the director position.

Of course, you will have to pay taxes in Finland after establishing the company. Corporate income tax is 20% (this also applies to branches of foreign companies), which is a relatively good rate for such a stable European country and a strong economy. Doing business in Finland brings many advantages, not the least of which is the undoubted respect of your partners for this jurisdiction. Entities with a turnover exceeding €8,500 must register for VAT payment.

The basic VAT rate is 24 %, then reduced to 14 % or 10 %. There is zero tax on dividends paid by a parent company incorporated in the EU if it holds at least 10 % of the Finnish company and the shareholder company is a company covered by the relevant EU directive.

A company in Finland is the right choice for you for doing business with minimal risk.

Establishment of a branch or office

The branch must keep its accounts in the same way as other businesses in Finland. The business name of the branch must contain the business name of the company and must clearly indicate that it is a branch. If the company originates from a country outside the European Economic Area, it must first apply to the Finnish Ministry of Trade and Industry for a permit to conduct business in Finland. The branch does not need share capital. The parent company guarantees all debts and obligations of its branch.

Investment Incentives

Finland offers a wide range of incentives and subsidies to foreign investors. Support is provided, for example, in the form of regional incentives, loans and guarantees from the state financial agency Finnvera, as well as start-up grants and incentives for entrepreneurs operating in the energy sector. The Tekes Technological Development Center then offers incentives to investors in the field of research and development. In certain cases, investors can also get a tax break.

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