Company in Finland

General information

Tax rate

Time of establishment of the company

Minimum capital

Company incorporation in Finland

Finland has revised its foreign trade policy to promote exchanges with the European Union. Enjoying a sustained surplus, foreign trade plays an important role in the country’s economy. Finland has achieved levels of growth and development that make it one of the richest countries in the world today.

Types of companies

There are several types of businesses for foreign investors:

• Limited liability company (Oy)

• Limited company (osakeyhtiö, Oyj)


• Small private company, usually an individual farmer

• Branch of a foreign company

Limited liability companies (Oys) are the most common corporate status of medium and large businesses. It is usually used by foreign companies to become established in the country.

Tax system

The Finnish state has taken fiscal measures to change its economy and attract foreign investors. The Finnish tax reform of 2005 reduced the corporate tax rate to 26%. This rate is well below the average of EU countries

Under EU law, the free movement of capital is the rule.

Foreign investors are offered new financial aid for the 2009–2010 fiscal years, including a doubled depreciation rate for the acquisition of certain buildings or machinery.


In accordance with standard practices in the EU, companies must register and submit annual accounts to regulatory authorities. Annual audits are mandatory for larger companies.

Tax rate

• Income tax: 26% • Tax on capital gains: 28% • Tax on royalties: 28% • Tax on interest: 28% • Income of foreign companies: 26% • Tax on dividends: 28% • VAT: 23%

Minimum capital

2,500 € fully paid at creation


Minimum of one associate

Foreign shareholders

Yes. Note that for each director from outside the EU, there must be an EU-resident director. Moreover, if the company appoints a manager, he/she must be a resident of the EU

Foreign holding


Legal obligations

Manditory auditor if the turnover exceeds 200,000 €, the total assets exceeds 100,000 €, and if the company has at least three employees


3 to 4 weeks from the receipt of all documents


Business address, telephone transfer, fax, and mail. Possibility to have a physical office (prices vary depending on demand)


Mandatory annual financial report, schedules, and management reporting, based on an estimated number of monthly bills and a forecast of annual turnover.

Company registration procedure

Taxes and finances

Local labor law

Other information