Company Formation in Finland
Finland has a free-market economy with a highly industrialised manufacturing sector. Revolutionising its market during the 1980s, Finland emerged with a GDP comparable to the UK and Germany. Finland later abolished public monopolies and fought internal corruption to become one of the most efficient markets in Europe and has been named as one of the most economically and politically stable countries in the world. Finland has continued to attract foreign investment due to its economic success, high standards of living and flourishing business developments.
Finland is an advanced industrial economy with a thriving private sector and a business environment that is highly conducive to FDI.
The government is business-friendly, and the country has a developed infrastructure, a skilled workforce and competitive operating costs.
Red tape is minimal and Finland is one of the least corrupt countries in the world according to Transparency International.
Foreign-owned companies can benefit from government investment incentives and access to the latest research from the extensive cooperation between Finnish universities and the private sector.
Foreign investment in Finland is welcomed as a boost to the dynamism of the economy.
As one of the most competitive and open economies in the world, Finland has a great deal to offer foreign investors.
Corporate tax rate is currently 26 %
In 2012 the income tax rate for an individual is between 6.5%-29.75%.
Income tax on capital income 28% paid to State.
Types of Entities
Private limited liability Company: This type of company is the first option for the majority of the foreign investors. It is a type of business that can be set up by one or more natural persons or legal entities. However, these shares cannot be sold on the stock market.
Public limited liability Company: The management structure of a Public Limited Company in Finland is pretty much the same as for a Private Limited Company. The difference is that the shares can be issued on the stock market.
General Partnership: Setting up a partnership in Finland requires at least two partners, who can be either individuals or legal entities. No minimum capital is necessary for establishing a partnership in Finland. The liability of the partners is general and fully shared to the extent of their initial contributions in the partnership.
Limited Partnership: Limited partnerships are rather similar with general partnerships in Finland. At least two members must set up a partnership and there is no required capital. The difference is that at least one member has to have general liability and at least one member is a limited partner, with liability to the extent of their own contribution.
Sole Proprietor: This is actually considered a limited company in Finland and it is the company that has only one shareholder. His role is also to represent the company and to be fully liable for the company’s obligations. No minimum capital is required in order to set up a sole proprietorship in Finland.
It usually takes 14 days to set up a company in Finland.