Setting Up Your Finland Business with GEOS Guide for Global Expansion

This article is apart of our weekly series associated with the The Global Subsidiary Index. The series is designed to help businesses identify the best countries for establishing a subsidiary based on key operational factors. GEOS provides a data-driven ranking of jurisdictions worldwide, assessing across 40+ criteria to bring you insights into global expansion opportunities.

Each country on the index is scored on an overall score out of 100, with each individual criterion out of 5 or 10. Higher scores indicate a more favorable environment for businesses. By leveraging these insights, companies can make informed decisions on where to establish a legal presence.

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In Finland, business is built on trust, and that mindset carries into daily life. Even most lost wallets find their way back to their owners. With values like these, it’s easy to see why Finland ranks among the world’s happiest countries. The country is stable, modern, and well-run. People value fairness and clear rules, and that shows in how business works.

In this guide, we’ll walk you through what to expect and how GEOS can make your expansion smooth and efficient.

Why Should You Expand to Finland?

Thinking about Finland business opportunities? Finland offers a stable economy, skilled workforce, and a supportive environment.

Innovation Hub and Stable Environment

Finland offers a stable, tech-driven environment for global business. Its GEOS Global Subsidiary Index Score of 64.0 reflects strong performance across political stability, infrastructure, and market strength.

Business-Friendly and Secure

Finland earns a Political Risk Score of 5/5, showing stability and low corruption. Businesses can plan long-term with confidence. The GDP per Capita Score of 8/10 points to strong purchasing power and a highly skilled workforce.

As part of the EU, Finland supports open trade and gives companies access to the broader European market. In 2022, two-way trade with the U.S. totaled $14.9 billion. Finland exports machinery, chemicals, and paper products. Its companies sell industrial machines and specialty chemicals to U.S. partners. These deals highlight the real potential in the Finland market.

Built for Digital Growth

With a Communications Infrastructure Score of 5/5, Finland leads the EU in digital performance. It was the first country to launch a national 6G program. Companies can test and scale 5G and 6G technologies in real environments.

• All 5G bands, including mmWave, are available
• 97% of households have internet access
• Over 60% of businesses use advanced cloud services

Programs like 5GNTF and 6G Bridge help global companies run pilots, build partnerships, and push innovation forward. Finland’s strong public-private cooperation makes this possible.

Economic Outlook: Mixed, but Improving

Finland entered a recession in 2023, but signs of recovery are emerging. Growth is expected to reach +1.3% in 2025 and +1.5% in 2026. Inflation has cooled, and lower interest rates are boosting consumer confidence.

Challenges remain:

• High labor and housing-related debt
• Rising public debt, projected to hit 85.9% of GDP by 2026
• Weak demographics and ongoing fiscal deficits

Developing a Business Idea for the Finnish Market

Starting a business in Finland begins with a solid idea backed by research and the right company form . Finland’s economy leans on services, advanced manufacturing, and innovation. To succeed, you need to understand local demand, industry trends, and the regulatory framework. It’s also crucial to know your customers and their needs when developing your idea.

Your first big choice is picking the right company structure, which may involve a registration fee . The most common forms are:

• Limited liability company (osakeyhtiö)
• General partnership (avoin yhtiö)
• Limited partnership (kommandiittiyhtiö)

For example, a tech startup seeking outside investment and limited personal risk might choose a limited liability company, while a small family-run café could opt for a general partnership.

Most entrepreneurs go with a limited liability company. It offers flexibility and limits personal liability, making it a popular option for startups and established firms alike.

After refining your idea and choosing your company form, you’ll register your business. Submit a start-up notification to the Finnish Trade Register, managed by the Finnish Patent and Registration Office.

You’ll need to provide:

• A company name
• A business address
• A brief description of your activities

You also need to register with the Finnish Tax Administration. This includes enrolling in the VAT register, prepayment register, and possibly the employer register, depending on your setup.

A strong business plan helps guide operations and attract investors. Outline your goals, market strategy, finances, and management structure. Defining your service offerings and customer service approach is key to business success. You can also get free advice from Enterprise Finland and other local business support services.

Once your business is up and running, stay on top of your obligations. File your financial statements and pay taxes on time. Both the Finnish Tax Administration and the Patent and Registration Office offer helpful resources to keep you compliant.

Plan carefully, pick the right structure, and follow the steps. That’s how you build a strong foundation in Finland’s business environment.

Creating a Business Plan for Finland

A well-crafted business plan is the cornerstone of business success in Finland’s competitive and innovation-driven market.

Entrepreneurs should start by analyzing Finland’s service-oriented economy, which places a premium on technology, sustainability, and customer-focused solutions. Understanding these local dynamics will help you tailor your business strategy to meet the needs of Finnish customers and stand out in your chosen industry.

Your business plan should clearly define your company’s mission, vision, and long-term goals. Outline the services or products you will offer, and explain how they address specific market needs in Finland. Include a detailed market analysis that covers your target audience, competitors, and industry trends. This research will help you identify opportunities and potential challenges unique to the Finnish business environment.

Financial planning is also essential. Provide realistic revenue projections, a breakdown of startup and operational costs, and a strategy for managing expenses. Highlight your approach to compliance with Finnish regulations, including tax obligations, reporting requirements, and obtaining a business id. This demonstrates to investors and partners that your business is prepared for sustainable growth.

Finally, set out your marketing and customer service strategies. Finnish customers value transparency, reliability, and high-quality service, so emphasize how your business will deliver on these expectations. Leverage support from local organizations like Enterprise Finland, which offer free advice and resources to help entrepreneurs succeed.

By developing a comprehensive business plan tailored to Finland’s unique market, you’ll be well-positioned to launch, operate, and grow your business with confidence.

Competitive Tax & Financial Environment

Finland combines fair tax policies, strong financial systems, and openness to foreign business. These strengths make it a steady choice for international companies.

The government continues to support lending and access to funding. Planning your financing is crucial, and there are various financing options available, such as bank loans and support from financing companies like Finnvera. The Finnish Tax Administration is responsible for overseeing tax compliance and obligations for companies operating in Finland.

Corporate Tax Rate

Finland has a flat 20% corporate income tax. It applies to resident companies and foreign businesses with a permanent establishment. The rate supports planning but isn’t among the lowest. That gives Finland a 6 out of 10 for tax competitiveness.

The country also follows global tax rules under Pillar Two. The Income Inclusion Rule (IIR) and Qualified Domestic Minimum Top-up Tax (QDMTT) apply to financial years starting after 31 December 2023. The Undertaxed Profits Rule (UTPR) takes effect in 2024. These tax obligations are typically assessed on a calendar year basis. Finland’s rules match the EU directive but don’t yet reflect all OECD guidance. More updates are expected.

Financial Infrastructure

Finland’s financial system is efficient and well-regulated. Banks are stable. Transactions move smoothly. The system has held up through global uncertainty. The government continues to support lending and access to funding. That earns Finland a 5 out of 5 for financial infrastructure.

Openness to Foreign UBOs

Finland is open to foreign business owners. The rules are clear. The process is straightforward. Finland business regulations create few barriers for investors. Investors face few barriers. In structures like limited partnerships, an investor can participate by providing capital without being involved in daily operations. This transparency and access earn Finland an 8 out of 10 for openness to foreign UBOs.

Other Taxes to Know

Finland doesn’t charge local or municipal corporate taxes. But companies with over EUR 50,000 in taxable income must pay a public broadcasting tax (YLE tax). It starts at EUR 140 and caps at EUR 3,000. The tax is deductible.

Workforce & Employment Regulations

Finland makes hiring fairly easy, but adds complexity through payroll costs and employment laws. Employers need solid HR processes and a good handle on budgeting. If you are hiring foreign workers, it is important to note that they will typically need a residence permit before starting employment.

Employment Law Complexity

Finland’s employment laws are detailed. They cover everything from contracts to benefits and termination. The rules are clear but require close attention. This gives Finland a 6 out of 10 for employment law complexity. Employers need to follow procedures carefully. Mistakes can lead to compliance issues or legal problems.

Union Complexity

Unions still play a major role in Finland, especially for the private trader community . While membership has dropped in recent decades, about 50–70% of workers still belong to a union. That’s high by global standards. Finland scores a 2 out of 5 here due to the strong union presence.

Employers should stay prepared to:

• Communicate clearly with union representatives
• Understand collective agreements
• Manage varying levels of union engagement, especially among younger and foreign-born workers

Employer Payroll Contributions

Hiring talent in Finland comes with high payroll costs. Employers must contribute to several programs, including:

• 17.38% for pension insurance
• Up to 0.80% for unemployment insurance
• 1.87% for sickness insurance
• 0.54% for accident insurance
• 0.06% for life insurance

These costs add up quickly, earning Finland a 2 out of 5 for employer payroll contributions. Businesses need accurate forecasting and strong payroll systems to manage it.

Difficulty of Recruiting

Recruitment in Finland is efficient. The country earns an 8 out of 10 here. The workforce is well-educated, and the hiring process is straightforward. Skilled immigration also plays a key role in filling talent gaps, according to the OECD.

• Foreign-born workers now make up 13.6% of the working-age population
• In 2021, they contributed to 60% of Finnish patents
• Obtaining residence permits is a key step for foreign professionals working in Finland.

That said, barriers like language and credential recognition can still slow things down. Fixing those gaps could make recruiting even easier.

Incorporation & Compliance Essentials

Setting up a company in Finland takes time, but the process is reliable. You’ll need to complete specific forms and submit the right documents based on your chosen business structure.

The company registration process in Finland involves completing a startup notification form and submitting establishment documents. The exact requirements for the company registration process vary depending on the business structure you select.

In addition to limited liability companies, you can also register general partnerships, limited partnerships, cooperatives, and housing companies. A cooperative association is a business structure owned and controlled by its members, where each member typically has one vote and enjoys limited liability.

When forming a general partnership or limited partnership, it is essential to have a partnership agreement, as this formal document defines the responsibilities of each partner and outlines the legal requirements for the partnership. Each has its own rules and setup requirements.

Both the Finnish Tax Administration and the Patent and Registration Office offer helpful resources to keep you compliant.

The official website of the Finnish Patent and Registration Office provides access to registration forms, detailed instructions, and further information for entrepreneurs looking to register a company in Finland. The website is the primary source for further information on business registration procedures and contact details.

The rules are clear, but some steps, like notarization or choosing the right legal form, may need extra care. With the right support, you can move through the process with confidence.

Company Registration Timeline

Company registration in Finland usually takes 1 to 3 months to register a company. The timeline reflects Finland’s careful approach. Companies must submit all required documents to the relevant registration office, such as the Finnish Patent and Registration Office or the Trade Register, for review.

Authorities review all documents before approving the registration. This helps prevent mistakes but adds to the wait. Companies should factor this into their launch plans.

Original Paperwork Requirements

Finland scores a 2 out of 5 for paperwork complexity. The process requires original documents, often with notarization. If those documents come from abroad, you may also need an apostille. That adds more time and cost. You’ll typically need:

• Articles of Association
• A Memorandum of Association
• Proof of share capital payment (if applicable)
• Certified translations or documents in Finnish, if required

These documents must be submitted to the appropriate office, such as the Finnish Patent and Registration Office, which is responsible for registering companies and maintaining the trade register.

Getting everything right on the first try helps avoid delays. That’s why many companies work with local advisors.

Resident Director Requirements

This part scores a 3 out of 5. Finland’s business regulations require at least one board member or representative to live in the European Economic Area (EEA).

In addition, there must be at least one managing director or director who resides within the EEA to comply with Finnish corporate laws. If no one qualifies, the company must apply for an exemption or appoint a local representative. Many foreign companies choose to partner with local experts to meet this rule.

Registered Address

Finland makes it relatively easy to set up a registered office. It scores a 4 out of 5 for this step. You need a local address where official documents can be sent. A virtual office is allowed in some cases, as long as it meets legal standards. This part of the process is usually straightforward.

Tax Residency and Management Location

A company is tax resident in Finland if it’s incorporated there. But incorporation isn’t the only factor. If a company’s place of effective management is in Finland, it may also be considered tax resident, even if it was set up elsewhere.

Authorities look at where real decisions happen. If the board meets in Finland or key managers run daily operations there, the company may owe taxes in Finland. That’s why it’s important to track where leadership decisions are made, not just where the company is registered.

Financial & Operational Considerations

Running a business in Finland is manageable, but it requires careful financial planning. Finland’s business costs are generally reasonable, though some areas demand close oversight. Managing expenses effectively is crucial to maximizing profit.

Average Budget Score

Finland earns a 6 out of 10 for overall budget impact. Operational costs are fair but not low. Labour costs, in particular, have risen sharply. In early 2025, Finland’s labour cost index hit 122.96, the highest on record. That’s a big jump from 108.17 in late 2024.

This reflects long-term growth in wages and employer contributions. For comparison, the historical average since 1975 is just 77.81. Businesses should expect higher costs for skilled workers and budget accordingly. While the environment supports productivity, maintaining a healthy bottom line takes planning.

Expense Management Score

Finland scores a 3 out of 5 for expense management. The rules are clear, and reporting is well structured. But businesses still need to track details carefully. Labour, insurance, and payroll contributions make up a large share of operating expenses. Even small errors in budgeting or compliance can lead to penalties or missed savings.

To stay on track, many companies:

• Use local accounting support
• Automate payroll and reporting tasks
• Review costs regularly to catch changes early

With strong internal processes, most businesses can manage costs effectively. But you’ll need to stay active and alert to maintain control.

Immigration & Work Permits

Finland scores a 3 out of 5 for immigration complexity. The process has clear steps, but it requires careful documentation. Most permits need a confirmed job offer, and the paperwork must match the requirements to avoid delays.

The application process for work and residence permits involves submitting the necessary documents, completing official forms, and following specific guidelines set by Finnish authorities.

The country focuses on bringing in high-skilled workers, especially in areas like healthcare, tech, and engineering. Programs like Talent Boost support this goal and help make Finland more appealing to global talent.

With the right preparation, the system works smoothly. Language support, recognition of foreign qualifications, and faster permit processing continue to improve. For many professionals, Finland offers both opportunity and stability.

Regulatory & Compliance Risks

Finland has clear rules around compliance and data protection. Maintaining accurate records in official registers is essential to ensure legal compliance and transparency for businesses.

These registers provide access to up-to-date company information for authorities, partners, and the public. Most businesses can manage the requirements with steady oversight and the right processes.

Compliance Reporting Score

Finland scores a 3 out of 5 for compliance reporting. The rules are clear, but businesses need to stay on top of them. Under the anti-money laundering law, companies must verify customer identities and know who the real owners are. They also need to assess risk, report suspicious activity, and keep records for five years. Other key requirements include:

• Setting up internal policies and employee training
• Monitoring transactions to match customer risk profiles

These tasks are manageable, but they require regular attention. In most cases, these procedures are straightforward with the right support. Many businesses use compliance teams or outside help to stay on track.

Data Management Laws Score

Finland scores a 4 out of 5 for data protection. It follows the EU’s GDPR and adds local rules that cover how data is handled in the workplace and online. Businesses must have strong data management practices in place. Important data protection laws include:

• The Finnish Data Protection Act
• The Working Life Act
• The Act on Electronic Communication Services

These cover areas like employee privacy and email monitoring. Finland takes data protection seriously. With solid systems and clear consent practices, businesses can meet the requirements and protect user trust.

Talent Availability & Scaling Considerations

Finland offers strong access to skilled professionals across key roles. It’s home to 3,800+ startups and ranks #7 in Western Europe for its startup ecosystem. This strong entrepreneurial environment helps attract top talent in tech, marketing, sales, and finance.

Finland supports a wide range of business activities, from launching new ventures to providing services as a light entrepreneur and registering these activities with the Finnish Trade Register.

• Developer Talent Score: 4/5: Finland has a well-educated tech workforce. Many professionals have strong backgrounds in software development, engineering, and emerging technologies. Startups and global tech firms benefit from this deep talent pool.
• Marketing Talent Score: 4/5: Marketing professionals bring a strong mix of creativity and data-driven skills. Expertise spans brand strategy, digital marketing, and campaign execution.
• Sales Talent Score: 4/5: Sales talent is widely available. Many have international experience and are comfortable working across markets, helping companies grow regionally and globally.
• Finance Talent Score: 4/5: The finance sector offers reliable access to skilled accountants, analysts, and finance managers. Strong education and training programs support this pipeline.

The main challenge is cost. Finland scores just 2 out of 10 for salary benchmarking. High salary expectations, especially in tech and senior roles, mean businesses need to budget carefully.

Unique Finland Expansion Insights

Finland offers a strong mix of innovation, government support, and practical culture. It’s a smart choice for companies looking to grow in Northern Europe. For foreign businesses expanding into Finland, the limited company structure is especially popular due to its suitability for various business operations and the separation of liabilities from founders.

Innovation and Startup Scene

Finland ranks 13th globally and 7th in Western Europe for its startup ecosystem. It has more than 3,800 startups and over 10 unicorns. Eight Finnish cities are among the top 1,000 startup hubs worldwide.

Key sectors include tech, gaming, telecom, and clean energy. Co-operatives also play a significant role in Finland, offering an alternative structure for startups and entrepreneurs.

Government Support

Foreign-owned businesses have access to the same programs as Finnish companies. Key support includes:

• ELY Centres for funding, training, and expert advice
• Finnvera for state-backed loans and export guarantees
• Business Finland for innovation grants and low-interest loans
• Tax incentives for R&D, machinery investments, and employee shares

Many advisory and support services, such as advice and industry federation support, are available free of charge to entrepreneurs. These programs help businesses grow, innovate, and expand internationally.

Banking and Setup

Opening a business bank account can take more time. Foreign founders often need to visit in person and provide detailed documents.

For certain company types, you are required to pay the minimum share capital into the business bank account as part of the process. You must also submit all required paperwork to the relevant authorities to complete the setup. It’s important to plan for this during setup.

Business Culture

Finnish culture focuses on clarity, trust, and respect for time. Communication is direct, and silence is seen as a sign of respect or reflection.

• Arrive early and follow the meeting agenda
• Be clear and well-prepared
• Avoid after-hours communication
• Expect decisions to involve group discussion

Building relationships takes time, but creates strong foundations. With the right approach, Finland offers a stable and supportive environment.

How GEOS Simplifies Your Expansion into Finland

GEOS helps you set up and operate in Finland. We manage incorporation, handle compliance, and provide guidance on local regulations. GEOS assists with filings and communication with the patent and registration office to ensure all legal requirements are met. You also get ongoing support to keep your operations running smoothly.

AI-Powered Global Expansion Support

Geovanna is your built-in digital assistant throughout the expansion process. She helps you complete forms, track deadlines, and navigate local requirements with ease. With Geovanna, you stay organized and move through setup with confidence.

Is Finland the Right Fit for Your Business?

Finland has a lot to offer. It is modern, stable, and well-connected. About 75 percent of the country is covered in forest. It is also home to the world’s largest archipelago, a vast lake district, and the wilderness of Lapland. Helsinki stands out for its design, safety, and infrastructure. It is a practical base for global teams.

With a GEOS Global Subsidiary Index Score of 64.0, Finland offers balanced opportunities for companies looking for innovation, strong infrastructure, and clear regulation.

📩 Contact GEOS for a customized expansion strategy.

This article does not constitute legal advice.