Finland is an attractive country for doing business. As a rule, two main reasons motivate non-residents to open companies here: first, the desire to optimize tax payments; secondly, the desire to enter international markets and operate in the developed European space.
Doing business in Finland is beneficial for a variety of reasons:
- economic stability;
- high investment attractiveness;
- government support for non-resident businesses;
- existence of treaties with 75 countries to prevent re-taxation;
- affordable cost and simple registration procedure;
- flexible tax legislation;
- access to European markets;
- the prestige of the state and so on.
Osakeyhtiö (Oy) – Limited Liability Company
One of the most common forms in Finland. The founder can be one or more persons. The founders are not responsible for the obligations of the enterprise, they receive profit in proportion to their share of shares.
Company registration in Finland – step by step instructions
Citizens of foreign countries who do not reside in Suomi or any of the EU countries, before registering a company, must:
- Obtain permission from the Finnish Ministry of Trade and Industry.
- Open a bank account and deposit an amount of 2,500 euros (minimum starting capital).
- The next, important stage is the preparation of a package of documents.
Required documents for starting a business in Finland
- Citizens who have received a work permit have the right to start their own businesses. To do this, you must provide the following papers to specialized institutions:
- Identity documents.
- Business project with a full description and justification.
- Personal social security number.
- Bank statement confirming the opening of an account, a statement with the balance on it.
- Visa or residence permit.
- A foreigner wishing to become a founder of a joint-stock company must add to the main papers: the decision of the Board on the organization of the enterprise, the protocol for choosing the founders, and the general rules of the joint-stock company.
The cost of registering a company in Finland
The expenditure part of the company registration includes:
- the amount of initial capital deposited into a bank account – from 2500 euros;
- permission from the Ministry of Trade and Industry – about 330 euros;
- preparation and translation of documents will require about 500 euros;
- registration with the Patent Office of a company with one name – 350-380 euros. If a company is registered under several names, an additional fee is charged for each.
- Businessmen who open enterprises for the production of products under their trademark must also register it. Registration of a trademark will cost 1,120 euros.
The taxation system in Finland
It is quite simple to understand the nuances of taxation in Suomi:
Income tax is 20% of the amount of income shown in the financial statements. Enterprises engaged in the production of food products,
food for animals and providing restaurant services pay tax at a reduced rate of 14%. Companies selling drugs, books, or tickets to theaters, cinemas, and concerts pay a mandatory payment at a rate of -10%.
Corporate income tax of 24.5% is paid by LLCs, funds, and cooperatives belonging to the category – of a separate taxpayer.
Personal income tax (salary) – 31.75%.
The size of the municipal tax on individuals depends on the district and varies between 16.2-22.5%.
The VAT rate is 24%. Firms that provide services or sell goods outside Finland are exempt from payment.
The profit from the activities of the enterprise is reflected in the financial statements, which are submitted annually to the appropriate authorities.
What kind of business can you open in Finland?
Tourism is considered one of the most demanded and profitable business areas in Suomi. This also includes the construction of hotel complexes and hotels near tourist centers and ski resorts.
The second place is taken by the service sector and trade. In the trade sphere, the sale of household chemicals, fresh and frozen fish, as well as the sale of grain coffee brings good profit.
For starting a business, priority is given to:
- information technology area;
- production and sale of solar panels and panels;
- construction of houses using Finnish technology;
- timber industry;
It is quite easy for foreign entrepreneurs with the necessary skills and knowledge to work with Finns in any industry. Residents are reliable partners, often working on trusting relationships and without signing contracts.
How to obtain a Finnish residence permit through a business?
By becoming a private entrepreneur or company founder in Suomi, foreign citizens have the right to apply for a Finnish residence permit. Initially, such a document is issued for a year, with the right to further prolongation. If an entrepreneur makes a profit, does not violate laws, and makes mandatory payments to the budget promptly, there are no difficulties in extending the validity of a permit document and it is drawn up for a longer period. Already after four years of permanent residence on Finnish soil, foreigners can become full-fledged citizens of Suomi.