Finland Expansion Guide
Global Upside helps companies set up, hire, and operate in Finland. Set up a legal entity quickly and easily with our solutions for branch, subsidiary, and rep office. Looking for an alternative to permanent establishment? Hire and pay employees in Finland without a legal entity by using our PEO & employer of record services. Once your business is set up, our teams can support with recruitment and staffing, human resources, employee benefits, payroll, accounting, and tax.
Finland has a highly industrialized, principally free-market economy with per capita GDP almost as high as other EU countries. The economy grew rapidly in the 1980s as the nation capitalized on its strong business relations with both eastern and western Europe.
- Finland ranks as the 45th largest economy in the world in terms of nominal GDP.
- Finland ranks as the 17th largest economy in Europe.
- Finland is the world’s largest exporter of Kaolin coated paper.
- Finland ranks as the world’s 13th best country for business.
Osakeyhtiö (Oy) is a limited company that needs at least 1 investor and 2 directors, and there is no personal liability of the investors. Overall management is taken care of by the board of directors and the managing director has routine responsibilities.
A limited partnership (komanditní společnost/ k.s.) is a form of an entity set up that requires one or more investors that are liable for the debts of the organization to the full extent of their investments (unlimited partners), and one or more partners that are liable for the debts of the organization up to the amount of their unpaid capital investments (limited partners).
Edustusto is a Finnish representative office that is not permitted to perform any commercial activities. It can only execute activities related to market research and promote the services and products of the parent company within the country.
It takes approximately four to five weeks to establish a legal entity set up in Finland.
The main laws that regulate employment bonds in Finland are:
- Employment Contracts Act 2001
- Annual Holidays Act 2005
- Working Hours Act of 2019
- Co-operation Act of 2007
- The Protection of Privacy in Working Life Act 2004
Below are the terms that need to be included in Finland’s employment contract:
- Work location
- Date of commencement
- Probationary period
- Job description
- Working hours
- Rest periods
- Safety and health at the workplace
- Holiday entitlements
- Contract duration
- Termination policies
Being a member of the European Union (EU), Finland is subject to the accounting, assessing, and financial reporting prerequisites established in EU Regulations and Directives as rendered into national laws and guidelines. The Accounting Act No. 1620/2015 drafts the accounting standards, EU-approved IFRS or Finnish Generally Accepted Accounting Principles (Finnish GAAP), which organizations should apply based on their size and form.
On 1 January 2019, the Data Protection Act (1050/2018) came into effect which is complemented by the GDPR. According to the law, employers must notify the employees about personal information processing, and the latter needs to give their consent wherever necessary.
Anti-Bribery & Anti-Corruption Law
The Criminal Code of Finland (CCF) 39/1889, as revised, furnishes the legal structure governing bribery.
1. Bribery of Public Officials:
i) Imprisonment for up to 4 years
ii) A monetary fine
iii) Confiscation of the benefits received via bribery
iv) Removal or dismissal from holding a position in the organization
i) A corporate fine of €850- €850,000
ii) Confiscation of the benefits received via bribery
iii) Prohibition of carrying out any commercial activities.
A sole proprietor or legal associate of a company convicted of bribery may face a ban on engaging in business for 3 to 7 years.