Types of Finnish Companies

Finland allows various forms of business types, regulated by the Companies Act. In many ways, setting up a company in Finland does not differ from setting it up anywhere else in Europe. The process is quite simple, and resembles with other countries, and the forms of business entities are not very different. An entrepreneur, national or foreigner, can choose between a general, or a limited partnership, limited liability company and cooperatives, all of which must be entered for registration with the Trade Register.

Private entrepreneur
A private entrepreneur, or sole proprietorship, is an individual who forms a company and is free to retain any profits, but is also responsible for the debts of the company, and the losses occurred.

Forming a General Partnership in Finland
A general partnership is set up by two or more individuals, or legal entities who distribute profits and losses among themselves. There is no initial capital required, instead the partners, who are all general (also called active partners), are held liable for all the company's obligations, to the extent of their personal assets. They have the right to interfere in the management of the company, and to claim their profit gains. A Finnish general partnership must be registered within the Trade Register.

Forming a Limited partnership in Finland
Two or more individuals, or legal entities, may establish this kind of partnership. At least one partner is the general one, who is fully liable to the partnership's obligations, but instead has the right to claim profit, and to interfere in the company's management, and at least one partner is limited, or silent, which means he is liable to the extent of his or her contribution, but may not apply his own decisions in the management of the company. Silent partners do not contribute to the coverage of losses. As the general partnership, a limited partnership must be submitted for registration at the Trade Register.

Forming a Private Limited Liability Company (osakeyhtiö Oyj) in Finland
A private limited liability company is formed by one or more persons, who can be individuals or legal entities. The minimum capital of such a company has to be EUR 2.500. The shareholders bear no personal liability for the company's debts and obligations, and their shares are not free to negotiate and trade to the public.

Forming a Public Limited Liability Company (osakeyhtiö Oy) in Finland
As the private limited liability company, the public limited company is set up by at least two natural persons, or legal entities, who must provide a minimum capital of EUR 80.000. This company form is designated for business at a larger scale, and its shareholders bear no liability with their assets, to the company's debts and obligations. Besides the capital amount, the main difference between the two private and public limited liability companies, resides in the shares negotiability. A public limited liability may offer its shares for trade, or can transfer them.