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 | |
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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 |
Below are some of the steps required for opening a subsidiary in Finland in 2024:
You can also get further information about subsidiary registration in Finland from our incorporation agents.
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 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 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.
If you are planning to open a subsidiary in Finland, you can find below the liabilities of a subsidiary:
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.
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:
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 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:
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.
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.
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:
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!