Doing Business in Finland (2025) — Key Government Sites and Practical Steps for Foreign Companies

This guide gathers the essential Finnish government and public agency websites foreign companies need when establishing operations in Finland in 2025. It also summarizes relevant policy points (company registration, taxation, payroll & social security, labor law, visas/permits), offers step-by-step procedures, and highlights practical precautions . Examples illustrate common scenarios. For outsourcing local support, consider services such as SailGlobal for cross-border human services.

Official websites (quick reference)

Key policy points and interpretations (overview)

• Legal forms: The most common structures for foreign companies are a Finnish private limited company (Oy), a branch office, or a representative office. Since 2019 there is no mandatory minimum share capital for a private limited company, simplifying start-up formation.
• Business ID: Every registered enterprise receives a Business ID (Y-tunnus) via YTJ — required for banking, payroll, and tax filings.
• Corporate tax: Finland’s corporate income tax rate has been 20% in recent years; confirm current rate with the Tax Administration before filing.
• VAT: Standard VAT is 24% with reduced rates (14% and 10% for certain goods/services). Registration thresholds depend on activity type; cross-border and digital services follow EU VAT rules and special schemes.
• Payroll reporting: Employers must report wages and salaries to the national Incomes Register. Reporting is generally immediate (within the next working day) and mandatory for all employers.
• Social security & pensions: Employers must register employees under TyEL (earnings-related pension insurance) and pay employer contributions (rate varies). Employers also arrange statutory occupational health services and appropriate insurance (accident insurance, unemployment contributions, etc.).
• Employment law: Core legislation includes the Employment Contracts Act, Working Hours Act and Annual Holidays Act. Finland has no statutory national minimum wage; many sectors are governed by collective agreements which set minimums and conditions.
• Residence and work permits: Non-EEA nationals typically need a Finnish residence permit for employment or an EU Blue Card. Certain intra-company transfers and posted worker rules also apply. Short business visits use Schengen rules.
• GDPR and data handling: EU data protection rules apply; employers must handle personal data lawfully and securely.

Step-by-step: Registering and starting operations

1. Decide structure & verify company name

1. Choose entity type: Oy (subsidiary), branch, cooperative, or sole trader.
2. Check name availability with PRH — avoid names infringing trademarks.

2. Register through YTJ and obtain Business ID

1. Prepare founding documents for an Oy or branch details for a branch office.
2. Submit forms and register at YTJ; receive Y-tunnus (Business ID).
3. Open a Finnish bank account; banks typically require company documents and proof of beneficial owners.

3. Tax registrations

1. Register as taxpayer at the Finnish Tax Administration: corporate tax, VAT (if applicable), and employer registration for withholding tax.
2. Set up VAT invoicing and bookkeeping in accordance with Finnish rules.
3. Apply for appropriate VAT schemes if you provide cross-border services or sell goods into Finland.

4. Payroll, insurances and reporting

1. Register as an employer and sign up with the Incomes Register for payroll reporting.
2. Enroll employees in TyEL and arrange accident and unemployment insurance through approved providers.
3. Set up payroll withholding, calculate employee contributions, and submit monthly/periodic reports to Vero and to Tulorekisteri.

5. Employment contracts and workplace set-up

1. Draft employment contracts consistent with the Employment Contracts Act and relevant collective agreements.
2. Arrange mandatory occupational health services and safety procedures; register workplace practices with occupational safety authorities if required.

6. Residence permits and hiring non-EEA workers

1. Obtain a job offer or contract, then apply for the appropriate residence permit through Migri online services.
2. EU Blue Card, ICT permits, or regular work permits have different eligibility criteria and processing times—prepare diplomas, employment terms, and certificates of non-criminality as required.

Practical precautions

• Permanent establishment risk: A foreign HQ may create taxable presence if local activities exceed preparatory/auxiliary levels. Structure transactions and place of decision-making accordingly.
• Collective agreements: Many industries rely on collective bargaining; check applicable agreements to avoid underpaying or non-compliance.
• Payroll reporting timing: Incomes Register rules are strict — late or incorrect reporting can trigger penalties.
• VAT obligations: Distance selling, digital services and imports have specific VAT treatments. Use reverse-charge rules where applicable and register for OSS/one-stop schemes if helpful.
• Occupational health: Employers must fund occupational health services. Budget for this when planning labor costs.
• Data protection & HR records: Comply with GDPR when storing employee data; secure consents and keep retention limited to necessary periods.
• Language and documentation: Finnish and Swedish are official; many agencies offer English materials but prepare translations of key documents when needed.

Illustrative cases

Case A — US SaaS company opening an Oy subsidiary

A US-based SaaS provider chose a Finnish private limited company (Oy) to serve Nordic clients. Steps taken: name check at PRH, register at YTJ, open local bank account, register for VAT and as an employer, and integrate payroll with the Incomes Register. They used a local payroll provider for TyEL enrolment and monthly reporting, avoiding compliance delays.

Case B — Chinese manufacturer filing VAT after local sales

A manufacturing firm established a branch to handle distribution. Because the branch sold goods in Finland, they registered for VAT immediately and appointed a local VAT representative to manage filings and customs processes. They also reviewed transfer pricing and permanent establishment exposure with tax advisors.

Case C — Construction company posting workers

A European construction firm posted workers to a Finnish project. The company ensured posted worker declarations, checked sector-specific collective agreements, and followed Finnish working time and safety regulations to avoid fines.

Recommended checklist before first invoice

1. Company registered & Business ID obtained.
2. Bank account opened and accounting set up.
3. VAT and tax registrations completed.
4. Employer registration and Incomes Register connection active.
5. Employment contracts aligned with laws and collective agreements.
6. TyEL and insurance policies in force; occupational health arranged.
7. Residence permits secured for non-EEA employees.

Where to get reliable help

For many foreign businesses, local professional support reduces risk: accountants familiar with the Incomes Register, Finnish tax advisors for VAT and transfer pricing, immigration consultants for Migri filings, and HR providers for employment compliance. For offshore-to-local staffing and administrative services consider specialist vendors such as SailGlobal to speed set-up and ensure regulatory compliance.

Final tips for 2025

• Always verify current rates and thresholds on official sites (vero.fi, migri.fi, ytj.fi) — tax and contribution percentages can change year to year.
• Maintain clear documentation showing licensing, contracts and tax filings to support audits and permit renewals.
• Engage early with Finnish partners or advisors when entering regulated sectors (healthcare, finance, construction).
• Plan cashflow for employer social costs and pension contributions — total labor cost can significantly exceed gross salaries.

Use the official portals listed above as primary sources for up-to-the-minute regulations and forms, and consult local counsel for interpretations tied to your business model.