Opening a business in Finland as a foreign investor might be a proper decision at a certain point. Most of our articles are concentrating on the formalities and procedures of company incorporation in Finland (as you can find here an example), but this one will provide information about the pros and cons of doing business in this country, startup costs, and many more. We invite you to read the following lines and also consider the support of our Finnish agents once you decide to start a business in this country as a foreigner.
| Quick Facts | |
|---|---|
| Types of companies available in Finland |
– limited liability company (OY), – joint stock company, – sole proprietorship, – holding company, – limited and general partnership, etc. |
|
Best cities for business in Finland |
– Helsinki, – Tampere, – Oulu, – Espoo, etc. |
|
OY registration is done with |
Finnish Trade Register |
| Minimum share capital for OY | Not required |
| Office rental costs in Helsinki (approx.) |
From EUR 300/desk/month, or starting from EUR 426/month for 8-30 sq.m. |
| Management |
– managing director, – board of directors |
| Start-up grants available for an OY in Finland (YES/NO) |
YES |
| Minimum capital for a public LLC |
EUR 80,000 |
| Tax benefits/deductions |
– deductions of up to 50% of taxes for new machinery/equipment in tax years 2020-2025, – extra deductions in the R&D sector, etc. |
| Registration with the Tax Administration in Finland |
Mandatory at the time the company is incorporated. A tax ID is issued. |
| Minimum number of shareholders to form an OY in Finland |
At least one |
| Pros of doing business in Finland |
– highly skilled workforce, – various business opportunities, – transparent business environment, – stable economy, – friendly startup policies, etc. |
| Cons of doing business in Finland |
– competitive and small market, – high labor & living costs, etc. |
| Time frame to start a business in Finland |
Around 2-4 weeks for opening a limited liability company |
| We provide company formation services in Finland(YES/NO) | YES |
Table of Contents
How much does it cost to open a company in Finland?
The startup and administration costs of a business should be borne in mind by a foreign investor in Finland. Let’s look at some of the main costs for company formation in Finland that you should consider:
- around EUR 240- EUR 380 is the registration fee for a limited liability company (OY variant in Finland), the most popular business structure and often selected by foreign investors;
- virtual office packages in Finland start at around EUR 69 per month. This option is also suitable for foreign entrepreneurs interested in remote work and a notable business address in Finland;
- the costs for a business license permit in Finland can range between EUR 50 and EUR 1,000, depending on the type of license and activities;
- about EUR 100 is the starting price for accounting services for a company in Finland. We can put you in contact with our accountants in Finland if you want to start a business as a foreigner in this country.
We would like to add that the above-mentioned costs are available for 2025. Comprehensive and up-to-date information can be obtained from our Finnish representatives, with whom you may collaborate if you want to open a business in Finland as a foreigner. As for the timeframe to set up a company in Finland, this might take around 3-4 weeks, mostly depending on the type of business structure and formalities.
Pros and cons of doing business in Finland
Finland is a suitable option for foreigners wanting to develop their commercial activities and enjoy a solid business climate. However, in certain cases, international entrepreneurs might face challenges, but nothing to worry about, especially in a country like Finland, which has a wide range of opportunities and support. Let’s explore some pros and cons about doing business in Finland:
- entrepreneurs enjoy a stable business environment in Finland. They can rely on a highly skilled workforce and also a digitalized system that eases the business formation;
- some businessmen find it challenging to deal with the labor costs or a small domestic market compared to others in Europe. Even so, the connections with neighboring countries in terms of business might represent a great advantage for a first-time business owner in Finland;
- Finland is known for low bureaucracy and high-quality public administration, which is a plus for foreign entrepreneurs;
- transparency in business registration and administration matters is highly appreciated in the business climate in Finland;
- 89 was the business freedom index (calculated from 0 to 100) of Finland in 2024.
Here is a video presentation with information on this topic:
Workforce and taxes in Finland
Around 77% is the employment rate in Finland, referring to the 20-64 age category of workers. In addition:
- according to the Office for Statistics in Finland, around 76.4% is the employment rate for seasonal workers in this country;
- the unemployment rate stands at around 8.8% for workers aged between 15 and 74.
In terms of taxation, Finland applies the following:
- 57.65% is the personal income tax rate in Finland,
- 25.5% is the standard VAT rate in Finland,
- 20% is the corporate income tax in Finland, below the European average.
If you have decided to open a company in Finland as a foreigner, you can contact our Finnish agents. We can help international entrepreneurs in starting their businesses here.