How to set up a business in Finland?

Choose the right company form

One of the most common legal structures for new businesses is the Limited Liability Company (Osakeyhtiö or Oy in Finnish). It offers limited liability, flexibility in ownership, and is suitable for both startups and subsidiaries of foreign companies.

Download the set-up package for limited liability companies.

Other options include:

• Sole proprietorship (toiminimi) – for individual entrepreneurs
• General or limited partnerships (avoin yhtiö / kommandiittiyhtiö)
• Branch of a foreign company – for companies expanding into Finland

Compare company forms at the Finnish Patent and Registration Office (PRH).

Select a unique name for your company

In addition to selecting the legal form, you must also choose a unique name for your company. To gain exclusive rights to the name, you should submit it to the Trade Register, which is maintained by the Finnish Patent and Registration Office (PRH).

Before submitting, you can check whether your desired company name is already in use by searching the Business Information System (BIS). This step helps avoid delays and ensures your name is accepted without conflicts.

Check whether the business is subject to a license

Before launching operations, it’s essential to determine whether your business activities are subject to any licenses, permits, or regulatory approvals in Finland. While many sectors do not require special permissions, specific industries, such as healthcare, construction, food services, education, and transportation, are regulated and require prior authorization.

Visit the Suomi.fi Business Licenses and Permits portal to find out what your company may need.

Failing to obtain the correct licenses can delay your launch or result in penalties, so it’s best to confirm early in the planning phase.

Register your company online

Establishing and registering a business in Finland requires submitting notifications to the Trade Register and various Tax Administration (Vero in Finnish) registers, including:

• the Prepayment Register (for managing advance tax payments),
• the VAT Register (mandatory if annual turnover exceeds EUR 20,000),
• and the Employer Register (required if the business regularly employs staff).

Fortunately, this process has been streamlined into a single digital form, known as the “Y form”. With online authentication and standard templates, a company can be registered in as little as 1–3 business days. There is a charge for registration.

If you don’t have a Finnish personal ID, you can still register through a legal representative or by submitting paper forms.

No share capital requirement

Since 2019, Finland has abolished the minimum share capital requirement for private limited companies. Previously, founders needed to contribute EUR 2,500 in capital. Today, you can start a company with zero upfront capital, significantly lowering the barrier to entry, especially for startups and foreign entrepreneurs.

This reform aligns Finland with other progressive EU countries and encourages early-stage innovation.

Get your business ID

Once your company is registered, it receives a Business ID, Y-tunnus in Finnish. This unique identifier is used across all Finnish public services, streamlining your interactions with government agencies and simplifying compliance by avoiding duplicate submissions or re-verification processes.

You’ll use your Business ID for:

• Tax filings and payments
• Customs declarations
• Employment and labor services
• Municipal permits and services
   

Learn more about the Business ID system.

Open a business bank account

Opening a business bank account is essential for managing finances, paying employees, and receiving payments. Finnish banks typically require:

• A certificate of company registration
• Identification documents for founders or board members
• A description of your business activities
• In some cases, a Finnish personal ID or a local representative
   

Please note that setting up a business account can take several days to a few weeks, depending on the bank and your company’s structure.

Bring in key talent fast

Finland’s Fast Track immigration process allows foreign specialists, startup entrepreneurs, and their families to receive residence permits in just two weeks. The process is fully digital and includes real-time tracking of application status.

Eligible individuals include:

• Startup founders
• Executives
• Key employees essential to business operations
   

The Fast Track program is part of Finland’s broader strategy to attract international talent and support high-growth companies by reducing delays in launching or scaling operations.

If you plan to hire staff, you’ll need to register as an employer and comply with Finnish labor laws. Finland has strong protections for employees, including collective agreements, social security contributions, and occupational health requirements.

Use My Enterprise Finland

The Enterprise Finland (Yrityssuomi in Finnish) portal is a comprehensive digital platform that offers guidance and support to businesses at every stage. It provides:

• Step-by-step guides in English
• Industry-specific requirements
• Digital forms and application channels
• Access to free business advisory services 

You can create a workspace at My Enterprise Finland and access a wealth of valuable services.