If you want to grow your business in Finland in 2025, 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 experts in company formation in Finland rather than stumbling through the formalities imposed. 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.
| Quick Facts | |
|---|---|
| Applicable legislation (home country/foreign country) | Finnish Company Law |
|
Best used for |
– financial services, – IT&C, – insurance, – banking, – automotive, – trading |
|
Minimum share capital (YES/NO) |
YES |
| Time frame for the incorporation (approx.) | Around one week |
| Documents to be filed by parent company |
– Articles of Association, – bank statements confirming the deposited capital, – decision of opening a subsidiary in Finland |
| Management (Local/Foreign) |
At least half of them must be EEA residents. |
| Legal representative required (YES/NO) |
NO |
| Local bank account (YES/NO) |
YES |
| Independence from the parent company |
Subsidiaries are independent from the parent company. |
| Liability of the parent company | The subsidiary in Finland is fully liable. |
| Corporate tax rate |
20% |
| Annual accounts filing requirements |
Must prepare and submit annual financial statements |
| Possibility of hiring local staff |
There are no restrictions in hiring foreign staff. |
| Travel requirements for incorporating a subsidiary in Finland |
Some formalities can be managed without the physical presence of business owners. |
| Double tax treaty access | Around 70 |
Table of Contents
Subsidiary registration steps in Finland in 2025
Below are some of the steps required for opening a subsidiary in Finland in 2025:
- The procedure of registering a subsidiary in Finland is very simple and does not take longer than one week.
- The name of the subsidiary must be verified for its availability.
- The deposit of the minimum share capital in a bank is another important step in registration.
- Next, the articles of association, the receipt from the bank confirming the capital, the list of 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 in 2025 is registering employees with the social security and pension fund.
You can also get further information about subsidiary registration in Finland from our incorporation agents.
Main documents required for opening a subsidiary in Finland
Our company formation agents in Finland can help you with the preparation of the documents required to register a subsidiary in Finland. Here are the documents:
- Foundation deeds and Articles of Incorporation.
- Copies of the passports of the company’s shareholders, in notarized form, are also required in the file.
- A document containing a description of the activities.
- Notarized Memorandum of Association.
- Other standard forms provided by the Finnish Trade Register.
These documents are essential in the formation of a subsidiary in Finland. Our specialists can guide you in the preparation and registration of these papers when you want to open a company in Finland.
Subsidiary structures in Finland
You can find the subsidiary company structures in Finland below:
- The subsidiaries may take the form of limited liability companies whose 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 EUR 2,500. 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 EUR 80,000. At least one founder is necessary to establish the company. If the share capital is above EUR 80,000, the management board must have more than 3 members, and at least half of them must be EEA residents.
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 limited liability for their contributions to the capital. Being a subsidiary, the majority of the capital must be owned by a foreign company.
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.
Subsidiaries in Finland can take up any form of business, but in all cases, it depends on the amount of capital, founding members, number of employees, etc. In Finland, you can establish venture subsidiaries, partially owned or wholly owned subsidiaries.
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.
The most used business structures in Finland are limited liability companies or OYs, which are also suitable for subsidiaries. The simple registration formalities are quite advantageous for international entrepreneurs in Finland, however, there are other structures available too for starting a subsidiary in this country. If you need more information regarding the functions of a subsidiary in Finland in 2025, you can discuss with our company incorporation representatives. Their consultation can help you understand the functions of the subsidiary well.
Post incorporation formalities for subsidiaries in Finland
The formation of a subsidiary in Finland also involves other post-incorporation steps, as follows:
- In case the company has multiple boards of managers, their responsibilities must be specified in a document.
- A private registry for each subsidiary shareholder in Finland is recommended.
- An accounting specialist is also required. You can choose our accounting firm in Finland to benefit from bookkeeping and payroll services, among others.
- Subsidiaries in Finland can also appoint an internal auditor.
- Annual financial statements must be filed with the competent authorities in Finland, as part of the business direction of a subsidiary in Finland.
- Company holders must also consider paying employee taxes.
Given these important business aspects, we recommend that you discuss further with our specialists and ensure that you meet all the conditions for opening a subsidiary in Finland.
Tax incentives for subsidiaries registered in Finland
If you want to open a subsidiary in the research & development sector in Finland, you can benefit from tax incentives under certain conditions. For example, R&D subtracting costs can benefit from an additional 50% deduction, but no more than the maximum limit of EUR 500,000. Tax optimization methods are also available, plus the protection of the double taxation treaties signed by Finland with countries worldwide. We invite you to learn more about the tax incentives available in Finland and the qualification requirements. The specialized support offered by our company formation representatives in Finland can be of great help when starting a business in this country, and especially when you want to open a subsidiary.
Finland’s economy in numbers
With a stable business climate and highly appreciated by international investors, Finland has shown signs of improvement in terms of its economy. Here are some interesting facts that could help you when deciding to set up a company in Finland:
- Economic growth is estimated at around 1.5% in 2025, after a decrease of 0.3% in 2024.
- Estimates for 2026 are positive, with a GDP growth of around 1.6%.
- The unemployment rate in Finland in 2024 was around 8.2% and is expected to decrease to 7.9% in 2025.
- The net exports and the government consumption were the factors that supported and will support Finland’s economic growth in 2025 and the following years.
Interested in company incorporation in Finland? Have you decided on opening a subsidiary in Finland? Please contact us and check our services and prices for business formation in this country.