Expand Business in Finland

Global Upside helps businesses expand into Finland by providing talent acquisition, human resources, accounting, payroll, tax, incorporation, and professional employer organization (PEO)/employer of record (EOR) services. Our comprehensive offerings create an end-to-end solution that helps you establish your business and optimize your operations, all while maintaining compliance with laws and regulations of Finland.

The hiring and incorporation processes in Finland are often complex, time-consuming, and involve numerous legal and compliance challenges. Global Upside simplifies these processes and lifts the compliance burden from your business. Our teams have the experience and expertise required to help you establish a legal entity in Finland. We also offer PEO/EOR solutions to companies interested in hiring employees quickly, without setting up a legal entity in the country.

Capital City

Helsinki

Currency

Euro (€)

Language

Finnish, Swedish

Government

Parliamentary Republic

Country Overview

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.

Legal Entity Setup

Options for setting up a legal entity in Finland include:

Osakeyhtiö (Oy)

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.

Julkinen osakeyhtiö (Oyj)

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).

Sivuliike

Sivuliike is a Finnish branch office that can be completely owned by the parent company and the latter is liable for all the activities.

Edustusto

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.

Human Resources

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
  • Remuneration
  • Working hours
  • Rest periods
  • Safety and health at the workplace
  • Holiday entitlements
  • Contract duration
  • Termination policies

Payroll

The payroll frequency, in Finland, is monthly and wages are paid at the month-end.

Accounting

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.

Tax & Compliance

Corporate Tax

The corporate tax rate in Finland is 20%.

Value Added Tax (VAT)

The VAT rate in Finland is 24% and there are reduced rates of 14% and 10%.

Data Privacy

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:

For Individuals:
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

For Businesses:
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.