Taras Miroshnychenko

Head of practice

E-mail

miroshnychenko@prikhodko.com.ua

Phone numbers

Head of Corporate Law and Fintech Practice. Expert in the creation and reorganization of companies, support of M&A transactions, as well as legal support for opening and running a business in the EU, Asia, and North America.

Starting and Managing a Business in Finland

Finland consistently ranks among the world’s top countries in terms of economic freedom, transparency of regulatory procedures, and protection of property rights. For Ukrainian entrepreneurs, the Finnish market is not only a “window to Scandinavia” but also an opportunity to operate within a predictable legal framework with a high level of trust in business. Thanks to recent legislative changes, in particular the tax reform, doing business in Finland is becoming even more attractive.

Get consultation on company registration in Finland

In this article, we will look at the key stages of entering the Finnish market, current registration requirements, and tax changes that came into force in 2026.

Choice of legal structure

The most popular form for medium and large businesses, as well as for companies with foreign investors, is a private limited liability company (osakeyhtiö, Oy). The main advantage of this form is the absence of a minimum share capital requirement. You can establish a company without any capital contribution at all (0 euros). For public companies (Plc), the minimum threshold remains high — 80,000 euros.

Alternatives may include limited partnerships (Ky) or general partnerships (Ay), which are suitable for small businesses or family enterprises, although they do not limit the founders’ liability for debts.

Registration procedure: 2026 requirements

As of January 1, 2026, Finland has completely abolished paper registration forms. All applications are submitted exclusively through the national portal ytj.fi. This significantly speeds up data processing but requires careful preparation of documents.

The registration process consists of two main stages:

Preparation of the founding agreement and articles of association. If the founders are individuals with Finnish personal identity codes, a bundled service on the portal can be used. If there are companies among the founders, foreign persons, or an individual set of articles is required, a standard notification must be submitted.
Submission of the start-up notification. This is a single application that is simultaneously sent to the Finnish Patent and Registration Office (PRH) and the Tax Administration (Vero).

Important note for non-residents! If members of the board of directors or the managing director do not have permanent residence in the European Economic Area (EEA), they must obtain a separate permit from PRH. In addition, the law requires that at least one board member (or deputy member) must be resident in the EEA.

Key tax changes for 2026–2027

The Finnish government has taken a course toward reducing the tax burden to stimulate the economy. The most significant changes concern corporate taxation:

Reduction of corporate income tax rate. From 2027, the corporate tax rate will decrease from the current 20% to 18%. This makes Finland more competitive in the region.
Extension of loss carryforward period. Starting with losses from the 2026 tax year, companies will be able to carry them forward to reduce taxable income of future periods not for 10, but for 25 years.
Reduction of VAT. From January 1, 2026, the reduced value-added tax rate (e.g., on food products and restaurant services) has decreased from 14% to 13.5%.

Regime for key foreign specialists. To attract talent, the income tax rate for foreign “key employees” has been reduced from 32% to 25%.

Indicator	Old regulation	New regulation (2026-2027)
Corporate tax	20%	18% (from 2027)
Loss carryforward	up to 10 years	up to 25 years (from 2026)
VAT (reduced rate)	14%	13.5% (from 2026)
Tax for foreign talents	32%	25%

Registration obligations and ongoing compliance

After receiving a Business ID, the company must fulfill several registration requirements depending on its activities:

VAT register. Mandatory registration if annual turnover exceeds 20,000 euros.
Employer register. If the company hires employees on a regular basis, it must be included in the employer register.
Beneficial owners register. Information about ultimate beneficial owners is submitted already at the company registration stage.

Doing business in Finland requires continuous monitoring of corporate legislation. For example, any changes in the board of directors, address, or business activities must be immediately registered in the Trade Register.

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What you should know about doing business in Finland

What are the requirements for opening a corporate bank account for foreign founders?

Although company registration (Oy) does not require minimum capital, Finnish banks impose high compliance/KYC verification requirements. Usually, the bank requires the personal presence of the founders, a detailed business plan, and an explanation of the source of funds. The process may take from several weeks to a month.

Does company registration provide the right to obtain a residence permit for an entrepreneur?

Company registration itself does not automatically grant the right of residence. To obtain a residence permit based on entrepreneurial activity, it is necessary to prove the viability of the business, the availability of resources for development and profit generation, which will allow the owner to support themselves in Finland.

What business maintenance expenses exist besides taxes?

In addition to tax deductions, it is important to consider mandatory insurance contributions (for example, YEL pension insurance for entrepreneurs, which becomes mandatory at certain income levels), expenses for professional accounting reporting (which in Finland is maintained according to strict standards), and audit services if the company meets the criteria for mandatory audit.

Why should you consult professionals?

Independent registration via the ytj.fi portal is possible, but it carries risks for foreign investors:

Language barrier. The official system is available only in Finnish and Swedish.

Identification requirements. To use the simplified procedure, all founders must have Finnish personal identity codes, which foreign individuals typically do not have.

Obtaining permits. The procedure for obtaining permission for board members outside the EEA is bureaucratic and requires properly structured justification.