If you want to grow your business in Finland, you might need to create a subsidiary. It can be challenging to deal with all the supplementary laws and compliance difficulties. You are welcome to rely on the assistance of our Finnish company formation agents rather than stumble through it. They can offer you useful support with the incorporation of your business. You can easily open a subsidiary in Finland with the services of our agents.
Subsidiary registration steps in Finland
A Finnish subsidiary is a company where the majority of the shares are owned by a foreign company. The decision of opening this type of business is especially due to the special fiscal policy applied to it. For example, the subsidiary pays taxes on profits in the country of origin. The withholding taxes on dividends, interests, or royalties applied on payment to a foreign company may be exempt or lowered by the provisions of a treaty of avoidance of double taxation. In terms of corporate taxes, Finland has the lowest rate among the Nordic countries.
- The procedure of registration of a subsidiary in Finland is very simple and does not take longer than one week;
- The subsidiary must have the name-checked for its availability and then deposit the minimum share capital in a bank;
- Next, the articles of association, the receipt from the bank confirming the capital, the list with the shareholders, the nature of the contribution, and a statement regarding the value of the contribution in kind, details regarding their contribution must be deposited along with the decision of opening a subsidiary company in Finland at the National Board of Patents and Registration;
- The last step for establishing a subsidiary in Finland must be taken if there are any employees;
- The company must enroll in accident insurance, pension insurance, and medical insurance.
You can also get further information about subsidiary registration in Finland from our incorporation agents.
Subsidiary structures in Finland
You can find the subsidiary company structures in Finland below:
The subsidiaries may take the form of limited liability companies which’s actions and registration are governed by the Companies Act (Osakeyhtiölaki, 21.7.2006/624). The Private Limited Company (osakeyhtiö-Oy) has a minimum share capital of 2,500 Euros (in cash or kind). It must have at least one founder and the daily decisions are provided by the management board. A Public Limited Company (julkinen osakeyhtiö-Oyj) must have a share capital of a minimum of 80,000 Euros (in cash or kind). At least one founder is necessary to establish the company. If the share capital is above 80,000 Euro, the management board must have more than 3 members and at least half of them must be EEA residents. A managing director must be elected to take the daily decisions in the company and conclude new contracts.
The shares of a private limited liability company cannot be freely transferable, unlike the stocks of a public limited liability company which can be listed on the Helsinki Stock Exchange. In both types of Finnish companies, the shareholders have the liability limited by their contribution to the capital. Being a subsidiary, the majority of capital must be owned by a foreign company.
If you want to open a company in Finland and give it a structure of a subsidiary or holding company, you can get in touch with our lawyers. For incorporation of any kind of company structure, the services of our agents are at your disposal. They will also guide you about the regulations of the company and under which laws your specific company form operates.
Subsidiary’s liability in Finland
If you are planning to open a subsidiary in Finland, you can find below the liabilities of a subsidiary:
- A subsidiary is a distinct organization that is managed by its board of directors;
- Shareholders generally are not accountable for the subsidiary company’s actions;
- Personal liability for directors;
- Liability is restricted to the subsidiary’s share capital.
If you have more questions regarding the liabilities of a subsidiary in Finland, you can rely on our agents. They can help you understand the liabilities. This information can help you open a subsidiary in Finland efficiently.
Functions of a Subsidiary
If you want to set up a subsidiary in Finland, you can get an idea of some general functions below that a subsidiary can perform in this country:
- A subsidiary is thought of as having a more substantial presence and is useful for opening a bank account in Finland;
- Acquiring a lease or other contracts in Finland;
- Attracting customers;
- Concluding business deals, etc.
If you need more information regarding the functions of a subsidiary in Finland, you can consult with our company incorporation consultants. Their consultation can help you understand the functions of the subsidiary well.
Subsidiary laws in Finland
Subsidiary laws in Finland aim to encourage international investors. The setup method is also the same as it is for the majority of European Union nations. Several legal requirements must be met before you can begin working at your subsidiary. These consist of:
- An audit report attesting to your shares following the Limited Liability Companies Act;
- An act-compliant statement of incorporation.
You must submit your proposed business name to the Finnish Trade Register along with these and the other documents mentioned above. All company names must be examined for any infringing use of trademarks or current names.
Why do you need expert assistance for company incorporation in Finland?
To set up a subsidiary in Finland, you will need both money and time. According to the conversion rate, the average total cost to open a subsidiary in Finland is roughly $13,347.60 in US dollars. Before you even begin to hire staff, the procedure can take anywhere from 14 days to 10 weeks. The time, money, and resources required for frequent trips to Finland should also be taken into account. Your time at the main firm will be limited if you set up a subsidiary in Finland on your own. It also has the potential to alienate other important workers from their tasks. Additionally, you will need the cash for flights to Finland and back during the process.
You do not have to work out everything on your own if you are prepared to set up a subsidiary in Finland. Our company incorporation consultants are on your side and ready to assist you in any way that you require. In addition to this assistance, if you require any help to incorporate a branch in Finland, you can also get in touch with our agents. They will guide you about all the rules and regulations regarding incorporating a branch in this country.
Finland’s gross domestic product (GDP)
The total market worth of all the finished goods and services produced during a certain period is known as the gross domestic product. GDP is frequently estimated yearly, it can also be calculated quarterly. You can find below the surge in the gross domestic product (GDP) of Finland, these statistics might encourage you to have a clear idea to open a subsidiary in Finland:
- In 2022, the GDP was $297,575 million. Finland’s GDP increased by 2% in 2022 compared to the previous year;
- Finland’s gross domestic product increased by 10.05 percent in 2021 to $299.16 billion compared to 2021;
- Compared to 2019, the GDP of Finland increased by 1.24 percent to $271.84 billion in 2020;
- Finland’s GDP in 2019 was $268.51 billion, about 2.61 percent lower than in 2018;
- The GDP of Finland in 2018 was $275.72 billion, 7.85 percent higher than in 2017.
Finland is a member of the European Union, with whom it has approximately 50 trade treaties. Trade treaties and agreements play an important role in facilitating international trade and can offer several benefits to Finnish companies. For instance, trade treaties can help Finnish companies gain access to new markets by reducing or eliminating trade barriers such as tariffs, quotas, and regulatory requirements. This can help Finnish companies expand their customer base and increase sales. Contact our company incorporation consultants in Finland. They can help you to open a subsidiary in Finland.
Additionally, you can approach our specialists if you are having trouble paying your office’s rent in this country. You can get a virtual office in Finland with their assistance. Our advisors can also offer advice on the various virtual office packages.