Business entities in Finland

Business entities in Finland

Healy Consultants assists our Clients to setup the optimal corporate structure for their business needs. There are several business entities in Finland, the most common being the LLC. Foreign companies can also incorporate a PLC, a Branch office or a Representative office.

The Finnish LLC (Oy)

    minimum requirements to setup company in Finland
  • Our Clients can setup an LLC in Finland with only 1 shareholder and 2 directors. At least one director needs to be an EEA resident, unless a permit is granted by the Finnish Patent and Registration office. The minimum share capital required to set up a Finnish LLC is €2,500 and the name of an LLC must include the words “osakeyhtiö” or its abbreviation “oy”;
  • An LLC must be audited if it falls under two of the following three criteria i) over €200,000 in annual turnover ii) over €100,000 in assets iii) more than 3 employees.

The Finnish public limited company (Oyj)

  • One can setup a Finnish PLC with a minimum of 1 shareholder and 3 directors. At least 50% of the directors must be EEA residents, unless a permit is granted by the Finnish Patent and Registration office. The minimum share capital required is €80,000 and the name of a PLC must include the words “julkinen osakeyhtiö” or its abbreviation “oyj”;
  • A PLC is allowed but not required to list on the Helsinki Stock Exchange. Our Clients may alternatively list their PLC in other stock exchanges in the EU.

The Finnish branch office (sivuliike)

  • Clients can set up a branch office in Finland that can be 100% owned by a foreign parent company. The parent company is fully liable for the actions of the branch office;
  • The branch office representative for i) a non EEA parent company, must be a Finnish resident ii) an EEA parent company, must be an EEA resident. If the parent company is not from the EEA, the branch office requires special permission from the Finnish Patent and Registration office.

The Finnish representative office (edustusto)

A representative office in Finland of a foreign company, is not allowed to produce goods or provide services. This entity can i) maintain business relations between the parent company and its Finnish Clients and ii) conduct marketing for parent company. The legal representative for i) a non EEA parent company, must be a Finnish resident ii) an EEA parent company, must be an EEA resident.

Table of comparison between Finland entities

 LLCPLCBranch officeRep office
Also known asOyOyjSivuliikeEdustusto
How long to set the company up?4 weeks5 weeks5 weeks4 weeks
How long to open company bank account?4 weeks4 weeks4 weeks4 weeks
Legal liability?LimitedLimitedUnlimitedUnlimited
Wholly foreign owned?YesYesYesYes
Minimum paid-up share capital?€2,500€80,000€0€0
File annual tax return?YesYesYesNo
Tax identification number required?YesYesYesNo
Corporate bank account?Nordea BankNordea BankDanske BankCitibank
Does our Client need to travel?NoNoNoNo
Resident director required?YesYesYesYes
Resident shareholder required?NoNoNoNo
Minimum directors allowed?2311
Minimum shareholders?1111
Corporate shareholders allowed?YesYesYesYes
Corporate director(s) allowed?NoNoNoNo
Public register of shareholders and directors?YesYesYesYes
Company secretary required?NoNoYesYes
Finland corporate tax rate?20%20%20%0%
Annual financial statements required?YesYesYesNo
Statutory audit required?YesYesYesNo
Allowed to issue sales invoices?YesYesYesNo
Allowed to sign contracts?YesYesYesNo
Allowed to import and export goods?YesYesYesNo
Can rent an office in Finland?YesYesYesYes
Can buy Finnish property?YesYesYesNo
Can own equity in other Finnish companies?YesYesYesNo
Total Finland business setup costs in Yr. 1€11,855€11,855€14,880€12,530
Subsequent annual costs (excl. accounting and tax services fee)€1,100€1,100€1,100€1,100
Sample engagement fee invoiceFinland LLC setup costFinland PLC setup costFinland Branch office setup costFinland Representative office setup cost

Frequently asked questions

External videos

Contact us

For additional information on our business setup services in Finland, please email us at email@healyconsultants.com. Alternatively please contact our in-house country expert, Ms. Zhang Yi, directly:
client relationship officer - Zhang Yi