Finland Company Formation & Entity Choice

Common business entity types

The private limited company (osakeyhtiö, Oy) is the most common form for business in Finland. Other forms include the public limited company, partnerships and the sole trader.

• Private limited company (Oy) — Osakeyhtiö — separate legal person, limited liability; most common form (Osakeyhtiö) (Limited Liability Companies Act (Osakeyhtiölaki 624/2006))
• Public limited company (Oyj) — Julkinen osakeyhtiö — may offer shares publicly; minimum share capital €80,000 EUR (Julkinen osakeyhtiö) (Limited Liability Companies Act (Osakeyhtiölaki 624/2006))
• Sole trader (toiminimi, tmi) — Private trader / self-employed; no separate legal personality, unlimited personal liability (Trade Register Act (Kaupparekisterilaki))
• Partnerships — General partnership (avoin yhtiö, Ay) and limited partnership (kommandiittiyhtiö, Ky) (Partnerships Act (Laki avoimesta yhtiöstä ja kommandiittiyhtiöstä 389/1988))

Incorporating an Oy — capital, steps, cost

Since July 2019 a private Oy has no minimum share capital. Incorporation is done by registering with the Finnish Patent and Registration Office (PRH) Trade Register, with company existence dating from registration.

• Minimum share capital (Oy) — None (€0) — minimum abolished from 1 July 2019 (was €2,500) EUR (Limited Liability Companies Act (Osakeyhtiölaki 624/2006), as amended 2019)
• Registration authority — Finnish Patent and Registration Office (PRH) Trade Register; company exists only after registration (Trade Register Act (Kaupparekisterilaki); Limited Liability Companies Act (Osakeyhtiölaki 624/2006) — https://www.prh.fi/en/kaupparekisteri.html)
• Trade Register registration fee — Approx. €270–€380 (online start-up notification typically cheaper than paper) EUR (approx — confirm current PRH fee) (PRH fee schedule (Trade Register notifications))
• Incorporation timeline — Typically about 3–4 weeks; faster via the PRH online service (approx — confirm) (PRH Trade Register processing guidance)
• Shareholders & board — At least one shareholder; board of at least one member plus a deputy; at least one board member (and managing director, if any) must reside in the EEA unless PRH grants exemption (Limited Liability Companies Act (Osakeyhtiölaki 624/2006))
• Formation documents — Memorandum of association (perustamissopimus) and articles of association (yhtiöjärjestys) required (Limited Liability Companies Act (Osakeyhtiölaki 624/2006))

Core annual compliance

Finnish companies must keep statutory accounts, file financial statements, hold a general meeting, and meet tax-filing obligations. Audit requirements depend on size thresholds.

• Bookkeeping & financial statements — Double-entry bookkeeping and annual financial statements required; financial statements filed with PRH Trade Register (Accounting Act (Kirjanpitolaki 1336/1997))
• Statutory audit exemption — Audit may be waived for small companies below 2 of 3 thresholds (e.g. balance sheet ~€100,000, turnover ~€200,000, ~3 employees) (approx — confirm current thresholds) (Auditing Act (Tilintarkastuslaki 1141/2015))
• Annual general meeting — AGM held within 6 months of the financial year end to adopt accounts and decide on profit distribution (Limited Liability Companies Act (Osakeyhtiölaki 624/2006))
• Annual corporate tax return — CIT return filed within 4 months of the month of period end; VAT and payroll returns filed periodically (Act on Assessment Procedure (Laki verotusmenettelystä 1558/1995))