Finland (FI)
Finland is a Nordic parliamentary republic in Northern Europe, bordering Sweden, Norway, and Russia, with a southern coastline on the Gulf of Finland.
Capital: Helsinki
Region: Europe
Language: Finnish
Currency: EUR (€)
Cost of living: Expensive (index 76)
Emergency: 112
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Business Setup
Start a business or go freelance in Finland.
🧑💻 Freelancer / Self-Employed Guide
Steps to register:
- 1 1. Decide on business structure — Toiminimi (sole trader) is simplest for freelancers; Oy (limited company) if you expect higher income or want limited liability.
- 2 2. Register your business at YTJ.fi (Business Information System, jointly run by PRH and Vero) — free for Toiminimi, €380 for Oy. You receive a Y-tunnus (Business ID number).
- 3 3. Register for VAT (ALV) with Vero if your annual turnover exceeds €15,000 (check current threshold). Also optionally below that threshold.
- 4 4. Register for Ennakkoperintärekisteri (advance tax register) at Vero — this signals to clients that you handle your own taxes, and they do NOT withhold tax from your invoices.
- 5 5. Obtain a verokortti for freelance income at OmaVero (vero.fi) — set the correct withholding percentage for advance tax payments.
- 6 6. Open a separate business bank account for business transactions.
- 7 7. Set up accounting software (Procountor, Netvisor, Visma Fivaldi, or simple bookkeeping for very small operations).
- 8 8. Join YEL pension insurance (Yrittäjän eläkevakuutus) — mandatory for self-employed persons working more than 4 months/year with income above the threshold (~€8,575/year in 2026). Critical — without YEL, you have no pension accrual or Kela sickness/parental benefits.
- 9 9. Consider joining an unemployment fund (yrittäjien työttömyyskassa) for self-employed persons — e.g., AYT (Yrittäjäkassa). Voluntary but recommended.
Tax registration
Register at YTJ.fi (ytj.fi) and simultaneously register for advance tax (ennakkoperintärekisteri) and VAT (alv-rekisteri) if applicable. Vero processes the registration and issues a Y-tunnus (business ID). All registrations are free online. Advance tax (ennakkovero) is paid in monthly or bi-monthly instalments based on your estimated annual income — adjust at OmaVero if income changes.
VAT threshold
€15,000 annual turnover (check current threshold at vero.fi — may be updated). Below this threshold VAT registration is optional. If registered, charge 25.5% VAT on most services (some at 14% or 10%). File ALV returns monthly, quarterly, or annually depending on turnover. VAT is called ALV (arvonlisävero) in Finnish.
Invoicing
Finnish invoices must include: your name and Y-tunnus (or HETU for private individuals), client's name and address, invoice date, invoice number, description of goods/services, quantity and unit price, VAT rate and amount (or "ALV 0%" if below threshold or reverse-charge), total amount, bank account details (IBAN/BIC). Finnish invoice standard: ISO IBAN format DK/FI/etc. E-invoicing (verkkolasku) is increasingly standard for B2B.
Social security
Self-employed persons must take out YEL pension insurance (Yrittäjän eläkevakuutus) — mandatory if working more than 4 months with YEL income above approximately €8,575/year (2026). YEL contributions: 18.87% of YEL income for those under 53, 19.24% for 53–62 year olds (2026). YEL income is a notional figure you set — it determines your pension accrual and Kela benefit levels. Do not set it too low. Health insurance and most Kela benefits (sickness, parental) are calculated based on YEL income.
💡 Finland is a good country for freelancers and startups — the process is streamlined, Y-tunnus is free to obtain, and English is widely accepted. The main pitfall is forgetting YEL pension insurance — without it, self-employed persons lose pension accrual and Kela benefit entitlements. The Orpo government (2026) has tightened some social benefit eligibility for self-employed, so check current Kela rules. Business Finland (businessfinland.fi) offers funding and support for innovative startups.
🏢 Business Structures
Toiminimi (T:mi) · Toiminimi (yksityinen elinkeinonharjoittaja)
Sole trader / Self-employment
None
Min. capital
1–3 business days (online registration)
Setup time
Liability: Unlimited personal liability — all business debts are personal debts
Setup cost: Free (register at YTJ.fi / PRH)
Best for: Freelancers, consultants, tradespeople, and small service businesses. Simplest structure. Can deduct business expenses against income.
Osakeyhtiö (Oy) · Yksityinen osakeyhtiö
Private limited company (similar to UK Ltd, German GmbH)
€0 (minimum share capital removed in 2019 — can start with €1)
Min. capital
1–3 business days (online via PRH)
Setup time
Liability: Limited to company assets — shareholders not personally liable (with exceptions for misuse)
Setup cost: €380 (online registration via PRH) or €275 with digital signing. Annual reporting required.
Best for: Entrepreneurs expecting growth, seeking investment, or wanting limited liability. Required for most VC-funded startups. Can pay salary + dividends tax-efficiently. Most common serious business structure.
Julkinen osakeyhtiö (Oyj) · Julkinen osakeyhtiö
Public limited company (Plc)
€80,000
Min. capital
2–4 weeks
Setup time
Liability: Limited liability
Setup cost: €500+ registration fee plus significant legal costs
Best for: Companies seeking to list on the stock exchange (Nasdaq Helsinki). Large corporations. Nokia (NOK), KONE (KNEBV), and Neste (NESTE) are Finnish Oyj companies.
Avoin yhtiö (Ay) · Avoin yhtiö
General partnership
None
Min. capital
1–2 weeks
Setup time
Liability: All partners have unlimited personal liability
Setup cost: €240 registration fee at PRH
Best for: Partnerships between 2+ people with equal responsibility. Relatively uncommon — most partners prefer the liability protection of Oy.
Kommandiittiyhtiö (Ky) · Kommandiittiyhtiö
Limited partnership
None
Min. capital
1–2 weeks
Setup time
Liability: General partner: unlimited liability. Silent partner (äänettömänä yhtiömiehenä): limited to their contribution
Setup cost: €240 registration fee at PRH
Best for: Partnerships where one party provides capital (silent partner) and another runs the business. Uncommon but used in property and investment contexts.
Osuuskunta (Ok) · Osuuskunta
Cooperative
None (minimum 3 members)
Min. capital
2–4 weeks
Setup time
Liability: Limited to the cooperative's assets
Setup cost: €380 registration fee at PRH
Best for: Groups of freelancers, artisans, or professionals sharing infrastructure and risk. The S Group (SOK) and OP Financial Group are giant Finnish cooperatives. Also used for housing (asunto-osuuskunta) and energy cooperatives.
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