Finland is known not only for its high quality of life and stable economy but also for being one of the easiest countries in Europe to start a business. Whether you’re an expat with a great idea or a seasoned entrepreneur looking to expand, Finland offers a transparent legal system, strong government support, and a well-connected startup ecosystem, especially in cities like Helsinki, Turku, Tampere, and Oulu.
But where do you begin? Starting a business in a foreign country can feel overwhelming, especially if you’re unfamiliar with the language or local bureaucracy. Fortunately, Finland provides clear steps and plenty of support to help new entrepreneurs succeed.
In this guide, we’ll walk you through everything you need to know: from choosing the right business structure and registering your company, to handling taxes, getting permits, and finding funding. Whether you’re planning to open a restaurant, work as a freelancer, or launch a tech startup, this article will give you the roadmap to start your business in Finland with confidence.
Understanding Business in Finland
Starting a business in Finland offers many advantages, especially for expats seeking stability, transparency, and a modern working environment. The country ranks consistently high in global ease-of-doing-business indexes and is known for its low corruption, digital public services, and efficient bureaucracy. The registration process is straightforward, most services are available in English, and many administrative tasks can be done entirely online.
One of the biggest benefits of doing business in Finland is the government support for entrepreneurs, especially through programs such as startup grants (Starttiraha) and innovation funding from Business Finland. Additionally, Finnish society places a strong emphasis on work-life balance and fairness, which is reflected in the country’s business culture. There is also a vibrant startup ecosystem in cities like Helsinki, Tampere, and Espoo, supported by tech hubs, incubators, and coworking spaces.
Expats in Finland typically choose to start as freelancers, offering services like design, IT, consulting, or language teaching. Others launch small businesses, including cafes, cleaning services, or online shops. Those with scalable ideas often dive into the startup scene, which is known for its strong international outlook and innovation-driven mindset.
No matter your background, Finland provides a safe and supportive environment to build something of your own.
Step 1: Choose the Right Business Structure
Choosing the right legal form for your business is one of the most important early decisions you’ll make. In Finland, there are several structures available and each with different requirements, responsibilities, and tax implications. Your choice depends on the size of your business, number of owners, and growth ambitions.
The simplest option is the Toiminimi. It’s ideal for freelancers and solo entrepreneurs. It’s easy to register, requires no starting capital, and suits those offering services like design, consulting, or manual work. However, the owner is personally responsible for all debts and liabilities.
If you plan to build a larger business or startup, consider Osakeyhtiö (Oy)—a limited liability company. It requires a formal structure, but your personal assets are protected. Although there’s no longer a minimum capital requirement, it’s recommended to have at least a few thousand euros when starting.
Other forms include:
- Avoin yhtiö (AY) – general partnership between two or more people
- Kommandiittiyhtiö (KY) – limited partnership with silent investors
- Osuuskunta – a cooperative model suitable for shared ventures
Take time to evaluate your needs, risks, and goals. You can always change your structure later, but choosing the right one from the start can save you time and costs in the long run.
Step 2: Register Your Business
Once you’ve chosen your business structure, the next step is to officially register your business in Finland. This is done through the Finnish Patent and Registration Office (PRH) and the Tax Administration via the shared online portal ytj.fi. Most entrepreneurs can complete the entire registration online, often in under an hour.
To begin, you’ll need to apply for a Business ID (Y-tunnus). It’s a unique number that identifies your business in all legal and tax matters. If you’re starting a sole proprietorship (Toiminimi), registration is quick and costs about 60€ online. For limited companies (Oy), registration requires submitting founding documents and costs approximately 275€–380€ depending on the method.
Before registering, you must choose a business name and check its availability in the PRH Trade Register. The name must be unique and not misleading.
If your annual turnover exceeds 15 000 €, you must register for Value Added Tax (VAT). It’s also possible to voluntarily register before reaching this threshold, which can be beneficial for business credibility or B2B services.
Registration is typically approved within a few days. After this step, your business becomes legally recognized, and you can begin operating officially.
Step 3: Open a Business Bank Account
After registering your business, it’s highly recommended ,and in some cases required, to open a separate business bank account. Keeping your personal and business finances separate not only makes accounting easier but also adds professionalism and builds trust with clients, suppliers, and tax authorities.
If you operate as a Osakeyhtiö, having a business account is essential. you’ll need it for managing company funds, paying salaries, and handling taxes. Even as a Toiminimi, a dedicated account helps track business-related income and expenses clearly.
Several Finnish banks offer business accounts, including OP, Nordea, Danske Bank, Säästöpankki, and Ålandsbanken. You’ll need to provide your business ID, registration confirmation, and personal ID to open an account. If you operate a company with multiple owners, additional documents like articles of association or a board decision may be required.
Many banks also provide online banking with services in English, mobile apps, and tools for invoicing or integration with accounting software. Some digital services like Holvi or Revolut Business are also available for simple needs.
Choosing the right bank early on ensures smooth daily operations and helps you stay organized financially from day one.
Step 4: Get the Necessary Permits and Licenses
Not all businesses in Finland require permits, but if you operate in a regulated industry, obtaining the right licenses and approvals is essential before you can legally start operating. The requirements vary depending on your business activity, and failing to comply can lead to fines or forced closure.
Common businesses that require permits include:
- Restaurants and food services – require approval from local health authorities and often a hygiene passport.
- Healthcare and beauty services – must meet professional qualification and facility standards.
- Transportation, childcare, education, and construction – each have specific regulatory bodies and safety requirements.
The best place to start is Suomi.fi, which provides a comprehensive list of industries and the permits they may require. It also connects you to relevant authorities such as the Regional State Administrative Agencies (AVI), Finnish Food Authority, or Valvira for healthcare.
Permits can usually be applied for online and may require documentation such as business registration, floor plans, qualification certificates, or proof of insurance.
Even if your business doesn’t need a formal permit, you may still be required to notify your operations to local authorities. Especially in fields that affect public health or safety. Always double-check before launching.
Step 5: Set Up Accounting and Taxes
Once your business is registered and ready to operate, it’s crucial to properly manage your accounting and tax obligations from the beginning. In Finland, even small businesses must maintain accurate records and report income and expenses regularly.
As a Toiminimi, your business income is taxed as personal income. You’ll pay progressive income tax and may also be subject to VAT and YEL pension contributions. If you run a limited company, the company pays 20% corporate tax on profits, and salaries or dividends are taxed separately on your personal tax return.
If your annual revenue exceeds 15 000€, VAT registration is mandatory. You’ll need to add VAT to invoices, file monthly or quarterly VAT reports, and pay the collected tax to the government.
Many entrepreneurs hire an accountant to handle bookkeeping, payroll, and tax filings. Alternatively, you can use digital accounting tools like Holvi, UKKO.fi, Procountor, or Talenom to automate much of the process.
Also, don’t forget social security contributions, especially YEL insurance, which is mandatory if your entrepreneurial income exceeds 9,000€/year for year 2025. Proper setup now prevents costly mistakes later.
Step 6: Apply for Business Support and Funding
Finland offers a wide range of public support and funding opportunities to help new businesses get started, especially if you’re unemployed, developing an innovative idea, or aiming to create long-term growth. Taking advantage of these programs can significantly reduce financial pressure in the early stages of entrepreneurship.
The most common form of support is the Starttiraha provided by TE Services. This grant is available to unemployed jobseekers and sometimes employed individuals transitioning to full-time entrepreneurship. It offers around 700€/month for up to 6–12 months. To qualify, your business must be viable, and you cannot already be generating significant income.
If you’re launching an innovative, scalable business, especially in tech or sustainability, you can apply for Business Finland funding. This includes innovation vouchers, R&D support, and internationalization grants. Startups can also access accelerators and incubators, especially in larger cities.
For small-scale businesses, local development centers and ELY Centres may offer support and mentoring.
Most funding applications require a solid business plan, so prepare your documentation carefully. Don’t hesitate to contact advisory services for help. Finland is known for its supportive environment for entrepreneurs.
Step 7: Develop Your Business Plan
A well-written business plan is more than just a formal requirement for grants or funding. It’s a vital tool that helps you clarify your goals, understand your market, and build a roadmap for success. Whether you’re applying for a startup grant, pitching investors, or just organizing your thoughts, your business plan should answer the question: Why will this business work, and how will it grow?
Your plan doesn’t have to be long or complicated, but it should be realistic and well-structured. Even after launching your business, revisit your plan regularly. It’s a living document that helps you stay focused, make better decisions, and adapt as your business evolves.
Step 8: Hiring Employees
As your business grows, you may reach a point where hiring employees becomes necessary. In Finland, becoming an employer involves legal, financial, and administrative responsibilities but the system is clear, and support is available to guide you.
Before hiring, you must register as an employer with the Finnish Tax Administration (Verohallinto). This allows you to handle payroll and report employee income correctly. You’ll also need to arrange for:
- Pension insurance through a pension provider
- Accident insurance and unemployment insurance
- Health insurance contributions, which are mandatory for employers
Finland has strict employment laws to protect workers’ rights, covering contracts, working hours, holidays, parental leave, and termination. You must provide a written employment contract outlining duties, salary, working time, and other conditions. Minimum wage levels are usually defined by collective agreements, even if not set by law.
Payroll and tax reporting must be done monthly via the Incomes Register, and accurate bookkeeping is essential. Many businesses choose to work with an accountant or payroll service to stay compliant.
If you’re hiring your first employee, TE Services may offer support, including wage subsidies for hiring unemployed jobseekers. Hiring in Finland is structured but with the right preparation, it’s manageable and rewarding.
Tips for Success as an Entrepreneur in Finland
Starting a business in Finland is relatively straightforward, but long-term success depends on how well you adapt to the local business culture and use the tools available. Finland values reliability, honesty, and independence, which should be reflected in how you run your business.
One of the most important steps is to build a local network. While Finns may be reserved at first, there’s a strong culture of cooperation and support within the entrepreneurial community. Join local entrepreneur associations, co-working hubs, or attend events like Startup Day or Slush to meet others and learn from their experience.
Leverage digital tools from the beginning. Many services are available online in English. Tools can save you hours of admin work.
Avoid common pitfalls such as poor cash flow planning, underestimating taxes, or launching without market research. Take time to test your idea, talk to potential customers, and calculate realistic costs and income.
Most importantly, be patient. Building a business in Finland is often a slow and steady process, but with consistency, quality, and professionalism, it can lead to long-term sustainability and freedom.
Useful Resources
Finland offers a wide range of official tools, platforms, and organizations to help entrepreneurs at every stage. Using these trusted resources will save you time, reduce mistakes, and connect you with support.
- PRH – Finnish Patent and Registration Office
Handles business registration, trade name availability, and company changes. - Verohallinto – Finnish Tax Administration
Provides essential information about taxation, VAT, income tax, and registering as an employer. The site includes guides for both Finnish and foreign entrepreneurs. - Suomi.fi
A central government portal offering services, permit checklists, and links to other authorities. Includes a “Start a Business” section with step-by-step guidance. - Business Finland
Supports startups and scale-ups with innovation funding, international growth programs, and expert advice. - TE Services
Offers startup grants, entrepreneur training, and hiring subsidies. Ideal for those transitioning from unemployment to entrepreneurship. - InfoFinland.fi
A practical guide for foreign entrepreneurs with information in multiple languages.
Using these resources ensures you’re operating legally, efficiently, and with access to all the support Finland offers to small businesses and startups.
I’m Adam, a creator who enjoys writing about language learning, Python projects, and relocation. I share simple tips and helpful guides for people who are starting something new or moving abroad. My goal is to make learning and big changes feel easier and more exciting.