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 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.
| 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 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 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 social security and pension fund.
You can also get further information about subsidiary registration in Finland from our incorporation agents.
Tax facts for subsidiaries in Finland
A Finnish subsidiary is a company where the majority of the shares are owned by a foreign company. The decision to open 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. You might want to find out more about how to open a company in Finland from our local specialists.
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 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 the liability limited by their contribution to the capital. Being a subsidiary, the majority of 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 OY, 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 consult with our company incorporation consultants. Their consultation can help you understand the functions of the subsidiary well.
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.