Expand your business in Finland: The world’s happiest country!
Registering your company in Finland means entering a business-friendly, innovation-driven economy with robust infrastructure—an ideal environment for ideas to thrive. The country also offers a highly skilled workforce and excellent accessibility to the European market, making it one of the best places to establish global enterprises. Recent studies highlight that Finland has been recognized among the top 15 EU markets for tech investments, fueled by strong public and private funding.
However, establishing a company in Finland can be complex, particularly for foreign entities. Instead of navigating the lengthy registration process alone, businesses can partner with an Employer of Record (EOR), which streamlines expansion by managing payroll, compliance, and legal requirements—eliminating the need for entity formation.
Keep reading to explore the step-by-step process of registering a company in Finland, the estimated setup costs, and how an Employer of Record (EOR) can help.
The business benefits of registering your company in Finland
Finland provides several compelling reasons for your businesses to establish operations
there:
- Access to the EU market: As a member of the European Union, Finland offers entry to a market encompassing over 450 million consumers.
- Innovation hub: Finland is consistently ranked among the most innovative nations globally with strong government support for research and development.
- Skilled workforce: With its highly educated population proficient in digital technologies, Finland’s labor force is well-equipped to support international businesses.
- Stable economy: Recognized for its economic stability, Finland also provides a secure environment for business operations.
- Ease of doing business: The country has high levels of business transparency and ample of digital services which contribute to an efficient and straightforward business setup process.
For companies that want to expand their presence here, two options available: standard company registration and partnering with an EOR.
Let’s examine the differences.
What is the difference between standard company registration and expanding through an EOR?
Below is a side-by-side comparison of EOR versus standard company registration:
Aspect | Company registration | Employer of record (EOR) |
Purpose | Establish a legal entity for long-term operations | Test new markets or manage remote teams |
Control | Full control over operations | Limited control (EOR handles HR and administrative tasks) |
Cost | High initial investment (registration, legal fees) | Predictable, bundled service fee |
Compliance | Full responsibility for legal and tax compliance | EOR ensures compliance with Finnish laws |
Setup time | Several months | A few weeks |
Scalability | Complex and time-consuming | Quick and flexible workforce adjustments |
While direct company registration offers complete operational control, partnering with an EOR simplifies market entry by reducing costs, administrative burdens, and compliance risks.
How an EOR simplifies company registration in Finland
Collaborating with an EOR like Multiplier streamlines your business expansion into Finland in multiple ways:
- Faster market entry: You can initiate operations within weeks rather than months.
- Regulatory compliance: It’s hassle-free. EORs manage adherence to labor laws, payroll taxes, and employment regulations.
- Cost savings: You save money by eliminating expenses such as share capital deposits and legal documentation.
- Efficient payroll management: You have less administrative work. The EOR will simplify payroll, benefits, and taxes through a unified platform.
- Focus on core business: Delegate administrative responsibilities to the EOR so you can concentrate on strategy and growth.
If you still need to register your company in Finland, however, we’ve outlined the steps in the next section.
A step-by-step guide to registering your company in Finland
Establishing a company in Finland involves several important steps. Here’s a clear roadmap to help you navigate the registration process efficiently.
1. Choose the right business structure
Determine the appropriate legal entity based on your business objectives. Common structures include:
- Private limited company (Osakeyhtiö, Oy): Suitable for most businesses; as of July 2019, there is no minimum share capital requirement.
- Sole proprietorship (Toiminimi): Ideal for self-employed individuals with full personal liability.
- General partnership (Avoin yhtiö, AY): Requires at least two partners with unlimited liability.
- Limited partnership (Kommandiittiyhtiö, KY): Comprises general and limited partners.
- Public limited company (Julkinen osakeyhtiö, Oyj): Designed for larger enterprises intending to go public.
Note: Foreign businesses often prefer private limited companies (Oy) due to their limited liability and operational flexibility.
2. Reserve a company name
Verify the availability of your desired company name through the Finnish Patent and Registration Office (PRH) and reserve it accordingly.
3. Draft the articles of association
Prepare legal documents outlining the company’s purpose, share structure, and governance framework.
4. Appoint directors and shareholders
Every Finnish company must have at least one director and one shareholder. Foreign-owned companies are required to appoint a local representative.
5. Register with the Finnish trade register
Submit your registration to the PRH to obtain a business ID.
6. Open a business bank account
Establish a Finnish bank account for your company. Note that the minimum share capital requirement for a private limited company was abolished in July 2019.
Even after you open an account, maintaining it and managing payroll from here can become tricky, especially if your headquarters are located elsewhere. Here is where a global payroll can help. You needn’t worry about time differences, currency conversions, and taxes. Our EOR ensures that your salaries are paid on time and in compliance with local laws. And our dedicated support is available 24/7 to manage any disputes or issues that may arise.
7. Register for VAT and employer contributions
Companies must register with the Finnish Tax Administration for Value Added Tax (VAT) and, if employing staff, for employer contributions. This can take up to 3 weeks.
8. Enroll for employee pension and insurance
Ensure compliance with Finnish employment laws by registering with a pension insurance provider.
9. Obtain necessary licenses and permits
Depending on your industry, specific business permits may be required before commencing operations.
10. Comply with accounting and reporting requirements
Finnish companies must maintain accurate financial records and submit annual reports to the PRH.
Note: ELY-keskus is the Centre for Economic Development, Transport, and the Environment in Finland, a government agency available to help entrepreneurs with funding opportunities, and grants.
Moreover, you can also change your business details later (in case you change your mind or make a mistake) by rechecking your details at Virre Information service and then notifying Finnish Trade Register.
While Finland is business-friendly and the registration process is relatively simple, it still requires time and money. Let’s understand the costs.
The real cost of registering a business in Finland
Understanding the expenses incurred during registration can help you plan better.
Here’s a breakdown of typical costs:
- Company registration fees: €275–€380 (PRH)
- Minimum share capital (for Oy): €2,500 (Finnish Patent and Registration Office)
- Legal and notary fees: €500–€1,500 (Varies based on legal service providers)
- VAT and tax registration: Free but requires proper documentation (Finnish Tax Administration)
- Accounting and annual maintenance: €1,000–€3,000 per year (Depending on the accounting firm)
Note: The minimum share capital requirement for private limited companies (Oy) was abolished in July 2019. (PRH)
Save costs by partnering with an EOR: Partnering with an EOR eliminates the need for share capital and registration while simplifying recurring costs into a single, predictable fee.
Cost comparison: Standard registration vs. EOR
A side-by-side comparison of EOR versus company registration costs can help you determine the best solution.
Cost category | Company registration (EUR) | EOR with Multiplier (EUR) |
Setup fees | €1,000–€3,000 | €0 (covered by EOR) |
Legal documentation | €500–€1,500 | Included |
Payroll & compliance | €300–€500/month | Included |
Ongoing maintenance | €1,000–€3,000/year | Included |
Time investment | 3–6 months | 2–4 weeks |
While company registration involves substantial upfront costs and administrative complexity, an EOR offers transparent services with recurring fees.
Note: The above are approximations of each costing category. Please consult our experts on company registration in Finland (we have a large team of local experts) for the latest costs and regulations and to understand whether an EOR is a better option for you.
Take the stress out of your Finland expansion with Multiplier
Expand into Finland effortlessly with Multiplier, your trusted partner for seamless market entry. From navigating complex regulations to ensuring full compliance with Finnish employment laws, Multiplier simplifies the process, saving you time and resources.
Our cost-effective solutions help you hire and manage talent without the need for a local entity. This allows you to focus on business growth while we handle the complexities of payroll, taxation, and compliance.
Why choose Multiplier?
- Local hiring expertise: Generate compliant employment contracts and onboard talent easily.
- Effortless payroll management: Ensure accurate and timely salary payments.
- Comprehensive HR solutions: From time-off management to expense tracking, we reduce administrative burdens at every step of your employee journey.
- Compliance assurance: Minimize the risk of non-compliance in Finland.
- Competitive benefits packages: Offer localized perks to attract and retain top talent.
- Reliable support: Our 24/7 team is ready to assist whenever you need.
Book a demo today and discover how Multiplier can simplify your Finland expansion without the stress and added costs.
