Guide to Company Incorporation in Finland

1. What is the minimum share capital of a Finnish Oy (Private Limited Liability Company)?
The most common form of business in Finland is the Limited Liability Company, or Oy. The business type is best suited for small to medium sized business and the minimum capital required is 2.500 EUR.

2. What is the minimum share capital for a Finnish Oyj (Joint Stock Company)?
The Public Limited Liability Company is set up by at least two natural persons, or legal entities, who must provide a minimum capital of EUR 80.000.

3. Are there any special requirements for establishing an Oy in Finland?
At least one person should incorporate the Finnish Limited Liability Company, provided the minimum capital requirement is fulfilled. The management of the company is handled by the management board whose liability depends on the amount of capital invested. Also at least 50% of the board must be residents in the EEA. The Finnish Law requires a registered office in Finland for the Limited Liability Company, and virtual offices can be provided. Usually there is no need for the managers to travel to Finland, the procedure of incorporation being completed by a representative in Finland. However, a company needs to open a bank account, and it is possible for the bank to request the client's presence. Still plenty banks accept verification of their client's existence through e-mail. The founder must submit to the bank sample signatures, and other documents.

4. How can I register for VAT in Finland?
After obtaining the registration certificate, the company's information is forwarded to the tax authorities in Finland. The founders may opt to register for VAT or not, depending on some regulations. Any company engaged in commerce is with a turnover higher then 8.500 EUR. VAT registration is completed by filling an application and attaching the articles of association of the company. The procedure can be completed by the legal representative of the company and as a result a VAT number is issued.

5. How can I open a bank account in Finland?
The Limited Liability Company must have a bank account in which to deposit the minimum capital and then conduct transactions, after the account is unblocked. Corporate bank accounts in Finland can be established in any currency, but the process can be complex, therefore specialised assistance is valuable. The procedure of establishment, as well as the required documentation can vary from bank to bank. Usually banks require the company's Articles of Association, copies of certificate of incorporation, after the company is registered, specimen signatures and copies of passports or identification cards. Some banks may request the presence of the directors, but usually the legal representative is allowed to carry out the whole procedure.

6. How can I recruit personnel in Finland?
Entrepreneurs who contemplate setting up business in Finland should know that unemployment in Finland is rather low, and worker's expectations are quite high, measuring their skills and qualifications. In addition to that, there are some regulations for foreign workers. They require work permits, which can be obtained with proof of skills and relevant education. Companies can create user accounts on different websites specialised in job placement, or hire recruitment agencies which offer focused attention and best suited candidates.

7. What is the average salary in Finland?
The economy of Finland flourishes, and this reflects on to the quality of life of Finnish employees. The average monthly salary in Finland is almost 3.000 EUR.

8. What is the overall economical situation in Finland?
Since the 1990 the economy of Finland has been continuously growing and developing due to productive business sectors and a well established relationship between public and private sector. Even if the last two years of global recession have left their mark on the countries business sectors, Finland's economy has performed surprisingly well. The country benefits from abundant forest resources, high technology and capital investment. Foreign investment is viewed as an important way to surpass the recession period, and therefore it is encouraged through incentives and a welcoming environment.

BridgeWest offers Company Formation in Finland, including virtual office services, opening of bank accounts and accounting services.