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Finland Company Formation

Updated:2018-4-4 14:31:51    Source:www.tannet-group.comViews:292

Finland company formation is not that difficult since Tannet's professionals will take care of all documentation. We provide a full range of corporate services such as legal and tax advisory, bank account opening, virtual offices and accounting. We can provide you with a turnkey solution with all support services.

Finland is a Northern European nation bordering Sweden, Norway and Russia. The economy of Finland has a per capita output equal to that of other European economies such as those of France, Germany, Belgium, or the UK. The largest sector of the economy is the service sector at 66% of GDP, followed by manufacturing and refining. It’s really a good choice to register a company in Finland.

Limited Liability Company in Finland
The Finnish limited liability company (Osakeyhtiö or Oy in Finnish) is the most common form of business in Finland as its shareholders have no personal proprietary liability for the company’s obligations. A Finnish Limited Liability Company (LLC) obtains these benefits:

1. 100% Foreign Ownership: Foreigners can own all the shares of a LLC.
2. Limited Liability: The owners are responsible up to the amount of share capital they possess.
3. One Member/Manager: Only one member (who can be a foreigner) is required to form a LLC who can be the sole manager.
4. Low Minimum Capital: The minimum authorized capital for private limited liability companies is 2,500 Euro.
5. English: While not its official language, English is spoken by many Finnish.

Taxation in Finland
Below is the main corporate taxation key points in Finland.
1. Corporate Tax
Finland levies a 20% corporate income tax on all worldwide income. Corporate tax is imposed on a company’s profits, which consist of business income, passive income and capital gains. Normal business expenses may be deducted in computing taxable income.

2. Dividends
Dividends paid to a nonresident company are subject to a 20% withholding tax, unless the rate is reduced under a tax treaty or an exemption applies under the EU parent-subsidiary directive. Dividends paid to nonresident individuals are subject to a 30% tax rate, unless reduced or eliminated under an applicable tax treaty. Shareholders residing in the EU/EEA may be treated the same as a Finnish resident shareholder with respect to dividend distribution.

3. Value Added Tax
Finland levies a 24% VAT rate on most goods and services. There is a 14% reduced rate on food, animal feed, restaurant and catering services and a 10% reduced rate on books, pharmaceutical products, event admission, accommodation services, and passenger transport. The registration threshold for VAT is 10.000 eur. Tax declarations must be prepared monthly.

Contact Us
If you have further inquires, please do not hesitate to contact Tannet at anytime, anywhere by simply visiting Tannet’s website, or calling Hong Kong hotline at 852-27826888 or China hotline at 86-755-82143422, or emailing to You are also welcome to visit our office situated in 16/F, Taiyangdao Bldg 2020, Dongmen Rd South, Luohu, Shenzhen, China.

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