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Establish a Subsidiary in Finland

Establish a Subsidiary in Finland

If you want to grow your business in Finland in 2024, 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.

 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) 


 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) 


Local bank account (YES/NO) 


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 


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 

Subsidiary registration steps in Finland in 2024

Below are some of the steps required for opening a subsidiary in Finland in 2024:

  • 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 2024 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

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.

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. 

If you want to open a company in Finland and give it the 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. 

Once the subsidiary has a Certificate of Incorporation, the entity must be registered with the social security, pension fund, medical insurance, and other related local authorities linked to business formation in Finland. When such a task is completed, the subsidiary can commence its activities.     

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.  

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.

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 2024, 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?

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 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.

Additionally, you can approach our specialists if you are having trouble paying your office rent in this country. You can get a virtual office in Finland with their assistance. Please contact us soon!