This post is also available in: 简体中文 (Chinese (Simplified))
Finland Company Incorporation Services
To launch a successful business in Finland, investors would need to choose the type of business entity and setup that would be the most optimum for the nature of their business. For Finland, just like a lot of other places around the world, the LLC business entity option once again proves to be the most common option for foreign investors.
An LLC in Finland would require the presence of one director and two shareholders in place for a company to be running and eventually incorporated. LLC is usually the recommended business entity by professional company incorporation services because other alternatives, such as branch offices for example, take much longer to register.
Professional company incorporation services usually come in handy by handling all the legal incorporation requirements. This is an invaluable aspect for investors because many underestimate the time and effort it takes to establish a business in an unfamiliar environment.
Doing Business in Finland
Investors establishing a company in Finland would also need to be prepared for the country’s seasonal business pace. June to early August are the summer months in Finland, and there is a very high probability that a lot of business will close for the summer holiday period.
During the summer period, the investor whose business is still running can expect to suffer from low sales and a possible lack of correspondence from their Finnish business partners who may be away on vacation during this period.
Working hours in Finland may also vary from other parts of the world. The working hours in Finland generally change based on the season, where businesses stay open longer during the winter months and close earlier during the summer months.
Finland can be an expensive place to be because of the high tax rates and extensive welfare systems. Employers could end up paying up to 24.5% of the employee’s gross salary amount in social security contributions alone.
Finland Company Incorporation
The Finnish Patent and Registration Office is the entity that is responsible for the incorporation of companies in Finland. For a company to be incorporated in Finland, investors need to be prepared for the fact that it might take up to three weeks for the process to be completed.
For a company to be successfully incorporated, one director and two shareholders must be in place within the company. And the key factor here is the director of the company needs to be a resident of Finland. Therefore, foreign investors seeking to establish a company in Finland must be prepared to appoint a local director to take charge.
The shareholders of the company can be of any nationality. The tax system in Finland is considered high, where corporate tax is at 20%, and the VAT rate is about 24%. Labour taxes and social security contributions are up to 24.5%. From a business standpoint, those are some high numbers.
Want to find out more about getting started on incorporating a company in Finland? Get in touch with 3E Accounting today for further assistance.