International investors can set up subsidiaries in Finland in 2026 by using our online services and reaching out to our Finnish agents. Below, this article presents some of the key conditions to incorporate such an entity.
| 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
Who can start subsidiaries in Finland?
Business owners of large companies abroad who want to develop their activities in Finland.
What is the legislation governing foreign subsidiaries in Finland?
- the Limited Liability Companies Act (Osakeyhtiölaki 624/2006),
- the Act on the Screening of Foreign Corporate Acquisitions (172/2012).
Can a subsidiary in Finland be 100% foreign owned, or do I need a local partner?
Foreign subsidiaries in Finland can be 100% foreign owned. There is no need for a local partner to do business in Finland.
What is the optimal legal structure to open a subsidiary in Finland?
The Private Limited Company (Osakeyhtiö – Oy).
Where do I register a subsidiary in Finland?
At the Finnish Patent and Registration Office (PRH).
Is there a minimum capital for starting a subsidiary in Finland?
No.
NOTE: Even though there is no minimum share capital required to set up a subsidiary in Finland, shareholders must prove they have sufficient funds to operate this entity.
You can also get further information about subsidiary registration in Finland from our incorporation agents and explore this infographic:
Is a Finnish director required when opening a subsidiary in Finland?
No.
What are the documents solicited to set up a subsidiary in Finland in 2026?
- foundation deeds and Articles of Incorporation.
- copies of the passports of the company’s shareholders, notarized, are also required in the file.
- a document describing the activities.
- notarized Memorandum of Association.
- other standard forms provided by the Finnish Trade Register.
Is there a threshold to register a subsidiary for VAT in Finland?
Yes, EUR 20,000 as annual taxable income/year.
What are the liabilities of a subsidiary in Finland?
- 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.
What are the conditions imposed to hire staff for a subsidiary in Finland?
To comply with:
- Payroll,
- Pension,
- Social security, etc.
What are the key sectors in Finland to open a subsidiary?
- Finance & banking,
- IT & C,
- Renewable energy,
- Bioeconomy, and many more.
What is the time frame to open a subsidiary in Finland?
About 3-6 weeks.
IMPORTANT: In Finland, paper filings are no longer available. All registration formalities of an entity (subsidiary included) are done online with a digital ID.
Are you ready to learn more about forming a subsidiary in Finland in 2026? We suggest you contact our Finnish agents, who can represent investors throughout the online incorporation formalities of a firm. Get your personalized offer today!