Finland has a stable and predictable legal system, making it an attractive destination for international organizations seeking to set up foundations. This type of legal entity enjoys a favorable tax treatment, including exemptions from income tax, corporate tax, and value-added tax (VAT). Additionally, donors to Finnish foundations can receive tax deductions on their contributions. If you are interested in opening a foundation in Finland, you are recommended to get help from experts. Get in touch with our company formation agents in Finland for details about our incorporation services. They can help you open a company in Finland, no matter its type.
Set-by-step guide to opening a foundation in Finland
Setting up a foundation in Finland involves several steps:
- Determine the purpose of your foundation: Before you start setting up your foundation, you need to determine its purpose. The foundation’s purpose should be charitable, educational, religious, or cultural, and must serve the public interest;
- Choose a name for your foundation: You need to choose a name for your foundation that is unique and not already in use by another organization. You can check the availability of a name by conducting a name search on the Finnish Patent and Registration Office’s (PRH) website;
- Draft the foundation’s bylaws: The bylaws of your foundation will establish the organization’s governance structure, including the roles and responsibilities of the board of directors, how the foundation will be managed, and how it will operate;
- Establish the initial capital of the foundation: The amount required varies depending on the type of foundation you are setting up. You can contribute with the initial capital by yourself or you can solicit donations from others;
- Register the foundation: Once you have completed the above steps, you need to register your foundation with the Finnish Patent and Registration Office (PRH). You will need to submit an application form along with the bylaws of your foundation and other required documents;
- Obtain a tax number and register for tax purposes: This will enable you to apply for tax exemptions and deduct donations from your taxes;
- Open a bank account in order to receive donations and manage funds.
Opening a foundation in Finland can be a complex process. It is recommended that you seek legal and financial advice to ensure you follow all necessary steps and requirements. Please consult with our company incorporation consultants in Finland. They can offer you detailed assistance in setting up a foundation in Finland.
Reasons to open a foundation in Finland
There are several reasons why one might consider opening a foundation in Finland:
- Good Governance: Finland is known for its high levels of transparency and good governance, which can help to increase the trust and credibility of a foundation operating in the country;
- Social Welfare System: Finland has a strong social welfare system that can help support the activities of charitable foundations;
- Access to Skilled Workforce: Finland has a highly educated workforce, with a strong focus on innovation and technology, which can be valuable for foundations seeking to undertake research or other knowledge-based activities;
- Strategic Location: Finland is located at the crossroads of Europe and Asia, providing a gateway to both markets and expertise in these regions.
Overall, there is a favorable environment for setting up a foundation in Finland, with its stable legal system, tax benefits, and strong governance making it an attractive option for those seeking to establish a charitable or nonprofit organization.
Besides helping you with opening a foundation in Finland, our agents can also help you incorporate a branch office of a foreign company in this country.
Finnish foundations in figures
Before opening a foundation in Finland, you are encouraged to check the statistics given below:
- The oldest Finnish foundation was founded in the nineteenth century;
- In Finland, there are approximately 2,700 registered foundations;
- The total market value of all Finnish foundations’ balance sheets exceeds 20 billion EUR;
- The stock market accounts for 62% of foundation investments, while interests account for 17%.
Contact our company formation specialists in Finland if you have any questions about incorporation. They can answer your questions in detail about setting up a foundation in Finland.
Besides this, if you are interested in acquiring a virtual office in Finland, the services of our agents are at your disposal.