Would you like to close your company in Finland in 2026? Below, our specialists in company formation in Finland explain how you can wind up a business and the conditions involved.
| Quick Facts | |
|---|---|
| Company liquidation in Finland is also known as | Company winding up |
Legislation | Limited Liability Companies Act in Finland |
Types of company liquidation in Finland | Voluntary or compulsory |
| Voluntary process implies | – the dissolution decision is adopted by company shareholders, – the liquidator sends a notification of closing the company to the Finnish Trade Register, – the same liquidator analyzes and sells the asses for paying and closing debts. |
| Compulsory process | Occurs in the case the company owners no longer afford to pay debts and/or face financial difficulties. The process is the same as the voluntary closing, except the fact that a judge can appoint the liquidator. |
| General meeting of shareholders | To decide the company liquidation in Finland and commence the process |
| Responsibilities of the liquidator | – verifies company assets and sells them, – ensures all debts are paid, – drafts varied company liquidation documents, among others |
| The company liquidation decision is registered by | The liquidator |
| Official proceedings in the private entrepreneurship sector | No official proceedings are solicited to wind up the operations of a private entrepreneur in Finland. |
| Dissolving a general/limited partnership in Finland | Can be dissolved by unanimous settlement or may be put into liquidation. |
| Submitting the tax return to the Finnish Tax Administration for the last financial year (YES/NO) | YES |
| Termination notification required (YES/NO) | YES |
| Terminating the business name | Once the company is closed |
| Time frame to liquidate a company in Finland (approx.) | Around 7 months |
| Working with our Finnish local agents | We assist local and foreign businessmen in winding up companies in Finland by managing the whole process. Complete services at affordable prices can be offered. |
Table of Contents
How is company liquidation in Finland known?
Winding up a company or closing a company.
What types of company liquidation are available in Finland?
- Voluntary,
- Compulsory.
What are the reasons to close a company in Finland?
- the company was created for a specific project, which has come to an end;
- the company was created for a limited duration of time from the beginning;
- the shareholders decide to terminate the business due to disputes or other reasons;
- the company is insolvent or bankrupt, which leads creditors to file for debt collection with a Finnish court of law.
You may also explore the following infographic with details on this topic:
What are the steps in voluntary company liquidation in Finland?
- the shareholders decide on the company’s dissolution in Finland,
- next, a liquidator is appointed,
- the liquidator will file a decision of closing a firm to the Finnish Trade Register (Finnish Patent and Registration Office (PRH)),
- the payment of creditors follows next,
- the company can be officially closed if all debts are paid and the decision is registered.
How is a compulsory company liquidation carried out in Finland?
- it is made in court.
- the court judge appoints a liquidator,
- the Finnish Trade Register is notified about the company’s liquidation process,
- the liquidator must analyze the financial status of the company, sell assets, and pay the existing debts,
- a final financial statement is then drafted by the liquidator, followed by the registration of a report.
NOTES:
- the liquidator will notify the General Meeting of the company that the process is complete. Then, a dissolution notification will be officially registered.
- the last balance sheet must be accompanied by the report indicating the distribution of the company’s assets, annual reports, etc.
What types of assets can be sold when a company’s liquidation process takes place?
- Company equipment,
- Intellectual property,
- Real estate properties,
- Investments, etc.
You can also check this video presentation with details on this topic:
What happens to company employees in a liquidation process in Finland?
- will be notified about the liquidation decision,
- the employment contracts will be terminated in accordance with the applicable rules in Finland.
Is there a difference between company liquidation and bankruptcy in Finland?
Yes. In the case of closing a company, its assets are sold, and the debts are paid. Bankruptcy is declared when a company in Finland is unable to pay its debts.
Is the closed company removed from the Finnish Trade Register?
Yes, as soon as the company liquidation process is concluded.
How long does it take to close a company in Finland in 2026?
About 5-6 months.
Are there any precautions to consider when closing a company in Finland?
There are robust compliance verifications for winding up a company in Finland. All procedures should be closely overseen by a specialist in the field, such as our local agents, to avoid potential errors or complications.
In addition to assisting with the closure of a company in Finland in 2026, our specialists can also handle the formalities of immigration to Finland, including applications for residency, work permits, and even citizenship. If you need assistance in company winding-up procedures in Finland, please get in touch with us. Our local specialists will guide you through the entire process and also assist with starting a company in Finland.