Business entities in Finland in 2023
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 |
