Finland Company Formation: A Practical Guide for Foreign Investors (2025)

1. Choose the Right Legal Structure:

• Private Limited Company (Oy):
  • This is generally the most suitable structure for foreign investors.
  • It offers limited liability and is relatively easy to set up.  
  • Remember, there's no mandatory minimum share capital anymore.
• Consider Your Business Needs:
  • If you're planning a large-scale public offering, a Public Limited Company (Oyj) may be appropriate.
  • For collaborative ventures, a cooperative or partnership might be suitable.  
  • If you are simply extending your foreign company, a branch office could be the easiest way to go.

2. Prepare Essential Documents:

• Foundation Agreement:
  • This outlines the initial agreement between the founders.  
• Articles of Association (Yhtiöjärjestys):
  • This details the company's internal rules and regulations.  
  • Ensure these documents are compliant with Finnish law.
• Business Plan:
  • Although not always mandatory, a solid business plan is very important, especially when applying for funding or permits.

3. Register with the Finnish Patent and Registration Office (PRH):

• Online Registration:
  • Finland's online registration system is efficient and user-friendly.  
  • Utilize e-identification for a smoother process.
• Required Information:
  • Provide details about the company's name, address, business activities, and board members.  
  • Submit the foundation agreement and articles of association.
  • If applicable, provide proof of paid up capital.
  • Timeframe:
    • The registration process is typically quick, especially when done online.

4. Obtain Necessary Permits and Licenses:

• Sector-Specific Requirements:
  • Depending on your business activities, you may need permits from other authorities (e.g., environmental permits, licenses for specific industries).  
  • Research these requirements beforehand.
• Tax Registration:
  • Register with the Finnish Tax Administration (Vero Skatt) for tax purposes.
  • Obtain a Business ID (Y-tunnus).

5. Open a Business Bank Account:

• Finnish Banking System:
  • Open a corporate bank account with a Finnish bank.
  • This will require company registration documents.

6. Key Considerations for Foreign Investors:

• e-Identification:
  • Embrace Finland's digital infrastructure by utilizing e-identification.
• Language:
  • While English is widely used, Finnish or Swedish may be required for official documents.
  • Consider hiring a translator if necessary.
  • Legal and Tax Advice:
    • Seek professional advice from Finnish legal and tax experts.
    • This will ensure compliance and prevent potential issues.
• Residency Requirements:
  • Ensure that you are aware of the residency requirements for board members.
  • Up to date information:
    • Ensure that you are using the most up to date information from the governing offices.