Business entities in Finland in 2022

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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)

  • 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 €1 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

  LLC PLC Branch office Rep office
Also known as Oy Oyj Sivuliike Edustusto
How long to set the company up? 4 weeks 5 weeks 5 weeks 4 weeks
How long to open company bank account? 4 weeks 4 weeks 4 weeks 4 weeks
Legal liability? Limited Limited Unlimited Unlimited
Wholly foreign owned? Yes Yes Yes Yes
Minimum paid-up share capital? €1 €80,000 €0 €0
File annual tax return? Yes Yes Yes No
Tax identification number required? Yes Yes Yes No
Corporate bank account? Nordea Bank Nordea Bank Danske Bank Citibank
Does our Client need to travel? No No No No
Resident director required? Yes Yes Yes Yes
Resident shareholder required? No No No No
Minimum directors allowed? 2 3 1 1
Minimum shareholders? 1 1 1 1
Corporate shareholders allowed? Yes Yes Yes Yes
Corporate director(s) allowed? No No No No
Public register of shareholders and directors? Yes Yes Yes Yes
Company secretary required? No No Yes Yes
Finland corporate tax rate? 20% 20% 20% 0%
Annual financial statements required? Yes Yes Yes No
Statutory audit required? Yes Yes Yes No
Allowed to issue sales invoices? Yes Yes Yes No
Allowed to sign contracts? Yes Yes Yes No
Allowed to import and export goods? Yes Yes Yes No
Can rent an office in Finland? Yes Yes Yes Yes
Can buy Finnish property? Yes Yes Yes No
Can own equity in other Finnish companies? Yes Yes Yes No
Total Finland business setup costs in Yr. 1 €20,330 €22,120 €20,850 €20,170
Subsequent annual costs (excl. accounting and tax services fee) €8,480 €8,480 €8,480 €8,480
Sample engagement fee invoice View invoice PDF View invoice PDF View invoice PDF View invoice PDF

Frequently asked questions

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Contact us

For additional information on our business setup services in Finland, please contact our in-house country expert, Mr. Petar Chakarov, directly:
client relationship officer - Petar
  • Mr. Petar Chakarov
  • Client Engagements Manager
  • Contact me!