Finland has one of the more founder-friendly Nordic setups: you can form a private limited company with genuinely zero share capital, and the corporate tax rate, a flat 20%, is the lowest of the Nordic countries covered in this series. Here's what it takes to start a business in Finland in 2026.
1. Which business structure fits you?
Before you register anything, it helps to know what you're actually choosing between.
- Toiminimi (sole trader). The fastest and cheapest option, with no minimum capital, though you're personally liable for business debts.
- Osakeyhtio (Oy). A private limited company, Finland's most common structure for both SMEs and foreign investors. Notably, you can start an Oy with €0 share capital; if you do, it's simply recorded as €0 in the Trade Register.
2. Register your business
Both structures register through the Finnish Patent and Registration Office (PRH) via the YTJ online business information system. A toiminimi start-up notification costs €70, with no minimum capital required. An Oy registration typically runs a few hundred euros once you factor in the standard filing costs. As of 1 January 2026, PRH no longer accepts paper notifications for limited liability companies, online filing at ytj.fi is mandatory. If your Oy's board is fully outside the EEA, you'll need to add an EEA-resident board member or seek a special PRH permit; having at least one ordinary board member and a deputy member resident in the EEA avoids that extra step.
3. Get your Business ID
Once your start-up notification is processed, PRH issues a Business ID (Y-tunnus), which you'll use for tax filings, banking, contracts, and virtually everything else going forward.
4. Check licenses and permits
Finland doesn't issue a single national business license. What you need depends on your industry; certain regulated sectors carry their own permits on top of standard Trade Register registration.
5. Understand Finnish taxes
Toiminimi owners pay Finland's progressive personal income tax on business profit, declared through the Tax Administration (Vero) the same as any individual's income.
Oy companies pay a flat 20% corporate income tax, one of the more competitive rates in the EU, with no withholding tax on dividends, interest, or royalties paid between resident companies.
VAT is 25.5% standard, among the higher rates in Europe, with reduced rates for specific categories. Registration is required once annual turnover exceeds €20,000; below that, registration is optional but can still be worthwhile if you want to reclaim input VAT on purchases.
6. Stay compliant
Most companies must file their financial statements with the Trade Register after the end of each financial period. VAT-registered businesses file returns on a schedule tied to their turnover. Foreign founders should note that while most official Finnish forms are available in English, banks, tax authorities, and customers often still expect a Finnish board member or local representative in practice, even where it's not strictly a legal requirement.
Finland business costs at a glance
| Item | Cost |
|---|---|
| Toiminimi start-up notification | €70 |
| Oy minimum share capital | €0 (no minimum) |
| Business ID (Y-tunnus) | Free, automatic |
| Corporate tax (Oy) | 20% |
| VAT, standard rate | 25.5% |
| VAT registration threshold | €20,000 turnover |
Frequently asked questions
How much capital do I need to start an Oy in Finland?
Genuinely €0, no minimum share capital requirement. It's simply recorded as €0 in the Trade Register if you choose that.
How much does it cost to register a sole trader (toiminimi) in Finland?
€70 for the start-up notification, with no minimum capital required.
What's the corporate tax rate in Finland?
A flat 20%, one of the more competitive rates in the EU.
When do I need to register for VAT in Finland?
Once annual turnover exceeds €20,000. The standard VAT rate is 25.5%.
Do I need an EEA-resident board member to form an Oy in Finland?
Only if your entire board is based outside the EEA. Having at least one ordinary board member and a deputy resident in the EEA avoids needing a special PRH permit.
Fees and rates above come from the Finnish Patent and Registration Office (PRH) and the Tax Administration (Vero) as of 2026, and they do change over time, so double check before you file. None of this is legal or tax advice. Talk to a Finland-qualified accountant or lawyer about your specific situation.