Business in Finland
Finland cooperates with Russia for many years, and that simplifies cooperation between these countries. If you have a desire to start the company in Finland, then you should surely, in advance, analyse all possible options of work of small entrepreneurships in this country.
To start the business in Finland, it is necessary to receive residence permit before you will arrive to the country (unless you are already a citizen of EU).
There are different forms of entities:
- The individual entrepreneur – rather easy method to start the activity in Finland. In this case the entrepreneur makes decisions concerning the business solely and answers for them himself.
- Cooperative – the legal entity that conducts economic activities with the purpose of supporting economic financial activities and economy of the members itself.
The cooperative is formed surely with the assistance of at least three physical persons or legal entities. Each person that participated in formation of cooperative possesses one voice at the meeting of members of cooperative. For the members of cooperative liabilities, responsibility is limited to the equity invested by them.
- The command partnership – differs from open partnership. In this partnership there is at least one participant who doesn’t possess voting power.
- The joint-stock company – the minimum size of the equity constitutes 2500 euros. To be able to create a joint-stock company, there shall be at least one legal entity or a physical person. Capital stock is divided into shares. The voting power, the right to profit and responsibility are pro rata to number of shares belonging to the participant
- The complete partnership – is created in a consequence of consolidation of physical persons starting from quantity of two people. Consolidation in this case happens in a consequence of creation of the joint constitutive treaty of partnership.
In this case participants have equal rights concerning cases of solving any arisen questions, which somehow concern the partnership. Also all participants equally bear own responsibility for liabilities, debts and solutions of partnership.
Exceeding from the current local legislation, financial accounting shall be conducted in all organizations. Also it is necessary for all entities, which are based in Finland to carry out audit (except the Individual entrepreneur).
Important side of the taxation system of Finland is that physical persons as well as individual entrepreneurs have their income divided in 2 types: the income labor and from the equity.
In a similar way there is a classification of income being done with the activities gained from the company.
- The tax on the income from the equity equals 28%.
- Taxes and payments can be levied from labor earnings at the rate of 55% of the salary (including the municipal and church rates).
- The value added tax equals – 22%. There also exist the lowered rates, which proceed from a company’s type of activity.
- Value added tax is also accrued in case of consultation services, transportations, sales of goods and services.
- Services, which are in the area of health care aren’t assessed with a tax.
If we speak about hiring workers, it is necessary to consider that citizens of Slovakia, Lithuania, Latvia, the Czech Republic, Poland, Hungary, Slovenia and Estonia need to get a special permission for working activities at the territory of Finland. It isn’t required for other citizens living at the territory of EU.
|Registration of joint-stock company (OY)||1500 euros|
|Consultation on the organization and conducting of the business activity||100 euros/ hour|
|Accounting servicing in Finland – standard quotations increased to coefficient.||1,4|