Form a Company in Finland — Fixed-Price

Last updated: April 2026.

Finland abolished the minimum share capital for a private osakeyhtiö (Oy) in 2019. One euro cent is enough. The corporate income tax rate rose to 22% on 1 January 2026 and is legislated to fall to 18% in 2027 — the sharpest swing in European corporate taxation that decade. VAT sits at 25.5%, the highest standard rate in the EU. Foreigners may own 100% of an Oy, but the board needs at least one EEA-resident director. Filing is fully electronic through the YTJ portal, and as of 1 January 2026 online filing is mandatory at the Finnish Patent and Registration Office (PRH). Most clean incorporations land within 2–5 working days.

We form Finnish Oy companies end to end: name check at PRH, memorandum of association, YTJ online filing, Business ID issuance, VAT and employer registrations, UBO notice, registered office in Helsinki, and a business bank introduction. Fixed price, Finnish-speaking manager, government fees included.

Quick facts	Value
Corporate Income Tax (2026)	22% (raised from 20% on 1 Jan 2026)
Corporate Income Tax (2027 planned)	18%
VAT	25.5% standard / 13.5% reduced / 10% super-reduced
VAT registration threshold (Finnish co.)	€20,000 annual turnover
Minimum share capital (private Oy)	€0.01 (no statutory minimum)
Minimum share capital (public Oyj)	€80,000
Residency requirement	At least one board member must be EEA-resident
Shareholders	One sufficient, can be non-resident or foreign corporate
Standard formation time	2–5 working days via YTJ
Government fees	Included in our packages
Language of filings	Finnish or Swedish
Currency	Euro (EUR)

Why Form a Company in Finland

Finland is the EU's most digital-native economy and the quiet Nordic option for founders who want stability without Swedish or Danish cost levels. Four reasons clients pick it.

No minimum capital. A private Oy can be formed with €0.01 in paid-up share capital. That rule has been in force since 1 July 2019, when the earlier €2,500 threshold was abolished. Among EU jurisdictions, only Estonia, France and Belgium match the effective-zero regime. Compare Germany's €25,000 GmbH requirement or Spain's €3,000 SL minimum.

A tax trajectory that favours long holds. The rate jumped to 22% for 2026 and is legislated to fall to 18% from 2027 under the government's 2026–2029 fiscal plan. Add a new 20% green investment tax credit for large-scale net-zero capex, and the effective rate for eligible industrial and data-centre projects lands well below the nominal figure. Finland is using corporate tax as a foreign-direct-investment tool.

EU and EEA full access. Finland is an EU member, a euro-area member, in Schengen, and deeply integrated with the Nordic and Baltic single markets. A Finnish Oy invoices freely across the EU under the reverse-charge mechanism, benefits from the Parent-Subsidiary Directive for inbound dividends, and has tax-free access to the Interest and Royalties Directive. The Helsinki-Tallinn corridor gives practical same-day logistics and banking overlap with Estonia.

Operational reliability. Finland ranks in the top five worldwide for rule of law, press freedom, and digital public services. Courts work. Contracts are enforced. The Trade Register issues a certified extract online in 30 seconds.

The trade-offs: the 22% CIT is higher than Estonia's 0%-on-retained or Hungary's 9%, winter is dark, and the board-residency rule means the company needs at least one EEA director — we arrange this where the founder is a non-EEA resident.

Company Types Available in Finland

Finnish company law, codified in the Osakeyhtiölaki (Companies Act 624/2006), recognises seven main forms. For 95% of cf24 clients, the private Oy is the right answer.

Osakeyhtiö (Oy) — Private Limited Company

The default Finnish limited company. Limited liability up to the paid-up share capital. No minimum capital since 2019 — share capital can be €0.01 in total. One shareholder and one board member are sufficient. Shareholders may be non-resident or foreign corporates. At least one board member (or the managing director, if appointed) must be resident in the European Economic Area; the PRH can grant a derogation on application. Annual filings go to the Trade Register (financial statements) and to the Tax Administration (form 6B corporate tax return). Audit is required only above thresholds — turnover above €1m, balance sheet above €200,000, or more than 10 employees on average (two of three).

Julkinen osakeyhtiö (Oyj) — Public Limited Company

For larger businesses and anything listed on Nasdaq Helsinki. Minimum share capital €80,000. Mandatory audit. Board of at least three members. Public share offerings trigger prospectus requirements under EU Regulation 2017/1129. Use Oyj if you plan to IPO or raise from a regulated public market.

Kommandiittiyhtiö (Ky) — Limited Partnership

One general partner with unlimited liability and one or more silent partners with liability capped at their contribution. Transparent for income tax — partners pay personal income tax on their share of profits. Used for family-run businesses and some investment structures.

Avoin yhtiö (Ay) — General Partnership

Two or more partners sharing unlimited joint and several liability. Tax-transparent. Limited use cases for foreign founders.

Toiminimi (Tmi) — Sole Trader

Natural person trading under a registered business name. Unlimited personal liability. Income taxed as self-employment. Available only to individuals with a Finnish personal identity code.

Sivuliike — Branch of a Foreign Company

Not a separate legal entity. The foreign parent's balance sheet and liability extend to the branch. Must be registered with PRH, requires a Finnish representative, and is taxed on Finnish-source income at 22%. Used when a foreign group needs Finnish presence without a subsidiary.

Osuuskunta — Cooperative

Member-owned entity, limited liability, no minimum capital. Common in agriculture, retail (S Group), and financial services (OP Financial Group itself is a cooperative). Rarely used for investor-led incorporations.

Form	Min capital	Liability	Tax	Common use
Oy	€0.01	Limited	CIT 22%	Default — SMEs, holdings, foreign subs
Oyj	€80,000	Limited	CIT 22%	Listed companies, large unlisted
Ky	None	Mixed	PIT on partners	Family businesses, investment
Ay	None	Personal	PIT on partners	Small partnerships
Tmi	None	Personal	PIT	Sole traders (Finnish ID only)
Sivuliike	n/a	Parent's	CIT on FI-source	Foreign group presence
Osuuskunta	None	Limited	CIT 22%	Cooperatives, member-owned

For an alternative to new formation, see our sister brand's pre-incorporated Finnish Oy companies.

Step-by-Step Formation Process

A typical Oy formation through the YTJ online system follows these steps.

Name reservation and PRH check. We confirm the proposed name is available and contains the mandatory "Oy" suffix. Finnish naming rules bar protected words (bank, insurance, state) and require clear distinction from existing companies. Two or three alternatives is normal.

Memorandum of association and articles. We draft the perustamissopimus (memorandum) and the yhtiöjärjestys (articles) in Finnish or Swedish. Standard articles follow the PRH model; custom articles allow tailored share classes, transfer restrictions, and pre-emption rights. Both documents are signed by every founder shareholder.

Board appointment and EEA-residency check. The board needs at least one member resident in the European Economic Area. Where the founder is not EEA-resident, we provide a nominee EEA board member as part of the package, or apply to PRH for a residency derogation — granted routinely for clean corporate ownership structures.

KYC and shareholder documentation. Each shareholder, director and beneficial owner provides a passport, proof of address, and a signed UBO declaration. Foreign corporate shareholders provide apostilled certificates of incorporation and registers of directors, with Finnish or Swedish sworn translation.

Filing via YTJ. The startup notification (Y1 for Oy) is filed through the joint YTJ portal, which routes to PRH (Trade Register) and the Tax Administration simultaneously. From 1 January 2026 online filing is mandatory — paper notifications are no longer accepted for companies. Finnish online banking credentials or a Finnish e-identification are required; we provide authorisation and file under power of attorney for non-resident founders.

PRH registration. Standard YTJ timing is 2–5 working days from a complete filing. The Business ID (Y-tunnus) is issued, and the company is entered in the Trade Register. The digital Trade Register extract is available immediately after entry.

Tax registrations. We register the company in the VAT register, the prepayment register (which confirms clean tax status to customers) and the employer register, where relevant. VAT registration is usually processed within 3–10 working days.

Post-incorporation compliance. We file the beneficial owner declaration to the Trade Register, open the corporate bank account with Nordea, OP, or Danske Bank, and set up accounting and e-invoicing. Finland mandates e-invoicing under the EU e-invoicing directive for supplies to government bodies; B2B e-invoicing is widely adopted but not legally mandatory yet.

End-to-end timeline from KYC clearance to operating company with bank account is usually 10 to 20 business days. The Trade Register entry lands on day 3 or 4; the bank typically takes the longest, and Finnish banks generally require a director to visit a branch in person.

Required Documents

For each shareholder, director, and beneficial owner:

Passport or EEA national ID (notarised copy for non-resident founders signing remotely)
Proof of residential address dated within three months
Finnish personal identity code (henkilötunnus), where held, or foreign tax ID
Signed declarations: acceptance of board position, UBO declaration, criminal record statement for directors

For corporate shareholders:

Apostilled certificate of incorporation
Apostilled certificate of incumbency or register of directors
UBO declaration
Sworn Finnish or Swedish translation of all foreign documents (we arrange via an authorised translator — required for PRH submission)

You also confirm the registered office address in Finland (we provide one in Helsinki if you do not have a Finnish address), the share capital allocation, the auditor appointment (if above audit thresholds), and the accounting-period end date.

Costs and Timeline

Finnish formation costs depend on whether the board-residency rule is met internally or needs a nominee EEA director, whether you need ongoing accounting (mandatory — CIT return 6B and VAT declarations), and whether a custom-articles notarisation is required.

Our packages cover the full incorporation through YTJ, all government fees, registered office for year one, drafting of the memorandum and articles in Finnish, EEA-resident director arrangement where needed, sworn translation of foreign documents, UBO filing, Business ID issuance, VAT and employer registrations, bank account introduction with Nordea or OP, and the first month of accounting setup. Contact us for a fixed-price quote — there are no hourly bills and no extras invoiced after the fact.

Typical timeline from KYC clearance:

Day	Milestone
0	Engagement, KYC submitted
1–2	KYC cleared, articles drafted in Finnish, translations completed
3	YTJ filing submitted to PRH
4–7	Trade Register entry completed, Business ID issued
7–10	VAT, prepayment and employer registrations processed
10–20	Bank account opened (variable per bank, typically requires director branch visit)

Tax Overview for Finnish Companies

Finnish corporate taxation is flat but swinging. Headline numbers for 2026 and the planned 2027 cut are public and legislated.

Corporate Income Tax: 22% on taxable profits, effective 1 January 2026. The rate was 20% from 2014 through 2025. The Finnish Government's 2026–2029 fiscal plan legislates a further cut to 18% from 1 January 2027, which would make Finland one of the three lowest-CIT EU members alongside Hungary (9%) and Ireland (12.5%). The swing applies across all companies and permanent establishments.

Green investment tax credit: 20% of qualifying capex on large-scale net-zero projects — renewable generation, hydrogen, battery manufacturing, carbon capture. Introduced in the 2026 reform to offset the rate hike and attract FDI in decarbonisation-heavy sectors.

VAT is 25.5% standard — raised from 24% on 1 September 2024 and currently the highest standard rate in the European Union. A 13.5% reduced rate (cut from 14% on 1 January 2026) applies to groceries, restaurant and catering services, and certain pharmaceuticals. A 10% rate covers books and e-books, newspapers, cultural and sporting event tickets, domestic passenger transport, and hotel accommodation. The VAT registration threshold is €20,000 in annual Finnish turnover for a Finnish-established business, raised from €15,000 on 1 January 2025. Non-resident businesses have no threshold — any taxable Finnish supply triggers registration.

Withholding tax on outbound dividends is 20% for non-resident corporations and 30% for non-resident individuals. Finland has an 80+ double-tax treaty network, which typically reduces dividend WHT to 0–15%. Dividends to qualifying EU/EEA parent companies (≥10% holding for at least 12 months) are exempt under the Parent-Subsidiary Directive implementation. Interest paid to non-residents is generally exempt from WHT. Royalties are 20% for non-resident corporations and 30% for non-resident individuals, reduced by treaty typically to 0–10%.

Capital gains on shares are taxed as ordinary corporate income at 22%. Finland operates a participation exemption for share sales of non-portfolio holdings (≥10%, held ≥12 months, non-real-estate-rich) held by a qualifying active Finnish corporate — a useful regime for group holding structures.

E-invoicing is mandatory for B2G supplies under Act 241/2019 implementing the EU e-invoicing directive. B2B e-invoicing is voluntary but widely adopted via the EU-standard Peppol network. Finland is monitoring the EU VAT in the Digital Age (ViDA) proposal and is expected to roll out mandatory B2B e-invoicing within the EU's 2030 timeline.

Banking for Finnish Companies

Finnish business banking revolves around three large incumbents and a growing set of digital alternatives. Finland's banking sector is small by Nordic standards but deeply digital — 98% of Finnish adults bank online.

Nordea is the largest Nordic bank by assets, headquartered in Helsinki. The standard corporate choice for cross-border operating companies. Strong English-language corporate desk, integrated Nordic cash management, FX and trade finance. Onboarding for non-resident-controlled companies is possible but typically requires the director to visit a Finnish branch and submit certified translations of corporate documents. AML review usually adds 2–4 weeks beyond basic onboarding.

OP Financial Group (OP Yrityspankki) is Finland's largest domestic banking group — a cooperative federation of 180-plus local banks plus a central institution. OP has the deepest SME coverage in Finland and the widest branch network. Onboarding is conservative: Finnish online banking credentials are preferred, and genuine Finnish operational substance improves approval odds.

Danske Bank Finland brings Danish-parent international experience and is comfortable with multinational corporate structures. Often the easiest mainstream bank for cf24 clients with complex foreign ownership, and the most willing to accept fully digital onboarding for EU-resident founders.

Handelsbanken Finland (Swedish parent) runs a relationship-led, branch-based model. Slow to onboard but reliable once accepted, and popular with mid-cap industrials. S-Pankki (the S Group consumer cooperative's bank) handles SME accounts alongside retail.

EMI alternatives are strong in Finland. Wise Business offers fully remote onboarding with a Finnish IBAN, multi-currency balances, and integrated SEPA and SWIFT — suitable for cross-border e-commerce, SaaS, and consulting businesses without heavy domestic Finnish payment volume. Holvi is a Finnish-native EMI founded in Helsinki, acquired by BBVA, now independent again — it is built specifically for Finnish micro-businesses and integrates directly with Finnish accounting software. Revolut Business provides Lithuanian-licensed EU-wide coverage with a Finnish-usable IBAN.

Finnish banks and tax authorities accept payments from SEPA accounts regardless of country of issuance. Your Oy does not strictly need a Finnish-domiciled account to operate, but in practice most Finnish clients, landlords and vendors prefer a local Nordea, OP or Danske IBAN.

Frequently Asked Questions

Can a foreigner open an Oy in Finland?

Yes. Both EU and non-EU nationals can own 100% of a Finnish Oy. There is no citizenship, residency or work-permit requirement on shareholders. The only practical constraint is that at least one board member (or the managing director, if appointed) must be resident in the European Economic Area. We provide a nominee EEA board member, or apply to PRH for a residency derogation where the ownership structure supports it.

How long does it take to register a Finnish Oy?

The PRH Trade Register entry typically lands within 2–5 working days of a clean YTJ filing. Our end-to-end timeline from first contact to an operational company with a bank account is usually 10 to 20 business days, including KYC, drafting the Finnish articles, sworn translation of foreign documents, tax registrations and the bank onboarding. Finnish banks generally take the longest step.

What is the minimum share capital for an Oy?

There is no statutory minimum since 1 July 2019. The share capital can be as low as €0.01. The previous €2,500 threshold was abolished to align Finland with other low-capital EU regimes. Founders typically set share capital between €1 and €2,500 as a signalling choice; higher capital has no tax consequence but can help with credit and vendor onboarding.

What is the corporate tax rate in Finland in 2026?

The corporate income tax rate is 22% from 1 January 2026, raised from the 20% rate that applied from 2014 to 2025. The 2026–2029 fiscal plan legislates a further reduction to 18% from 1 January 2027. A new 20% green investment tax credit applies to qualifying net-zero capex and can materially reduce the effective rate for eligible industrial projects.

Do I need a Finnish-resident director?

You need at least one board member (or the managing director, if appointed) resident in the European Economic Area — not Finland specifically. A director resident in any of the 30 EEA states satisfies the rule. Where no founder is EEA-resident, we provide a nominee EEA board member, or apply to PRH for a derogation, which is routinely granted for clean corporate structures.

What is the VAT rate in Finland?

The standard VAT rate is 25.5% — the highest in the European Union, raised from 24% on 1 September 2024. A 13.5% reduced rate (cut from 14% on 1 January 2026) covers groceries, catering and certain pharmaceuticals. A 10% super-reduced rate applies to books, passenger transport, cultural event tickets and hotel accommodation. The registration threshold for a Finnish-established business is €20,000 in annual turnover.

Do I need a Finnish bank account to run an Oy?

No legal requirement, but strongly recommended in practice. Finnish tax authorities and most Finnish vendors accept SEPA payments from any EU IBAN, so an Oy can operate from a Wise or Revolut account. Physical Finnish banks — Nordea, OP, Danske — are preferred for direct-debit facilities, domestic credit lines and payroll processing, and most operating Finnish companies hold both a local bank and an EMI.

Get Started — Form Your Finnish Company

A fixed-price quote in 60 seconds. PRH Trade Register entry in 2–5 working days via YTJ. Bank account introduction with Nordea, OP or Danske included. EEA-resident director arranged where needed.

Call +48 2222 5 2222 or email [email protected] to start. Most Finnish formations are complete and operating with a bank account within 20 business days.

Content prepared by Julia Thompson, Corporate Client Service Specialist. Approved by Tomasz Bielski, Managing Director.

Company Formation in Finland