Doing business

Finland

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Setting up a company | FDI in figures | Why you should choose to invest | Procedures relative to foreign investment | Finding assistance for further information

Setting up a company

Types of companies and capital (max/min)	Number of partners/shareholders and liability
The Sole Proprietorship (Toiminimi) No minimum capital	1 partner Undefined
Co-operative Decided by the founders, no minimum capital. Participation shares must be of equal value.	Minimum 3 founders Undefined
General partnership (Avoin yhtiö, Ay) No minimum capital	Minimum 2 general partners General Partner is personally liable and without limitation for the company's debts and obligations.
Limited partnership (Kommandiittiyhtiö, Ky) No minimum capital. At least 1 limited partner with financial input.	Minimum 1 general partner + 1 limited partner At least 1 of the members is liable for the debts and obligations of the company.
Private limited company (Osakeyhtiö, Oy) EUR 2,500	Minimum 1 person Liability is limited to the amount contributed.
Public limited company (Julkinen osakeyhtiö, Oyj) EUR 80,000	Minimum 1 person Liability is limited to the amount contributed.

Business setup procedures

Setting up a company	Finland	OECD
Procedures (number)	3.0	5.6
Time (days)	14.0	13.8

Source: Doing Business.

For further information: Consult Doing Business Website, to know about procedures to start a Business in Finland.
Trade Register
The competent organization: National Board of Patents and Registration of Finland (NBPR)

FDI in figures

Foreign Direct Investment	2008	2009	2010
FDI inward flow (millions USD)	-1,974	-4	4,314
FDI stock (millions USD)	83,136.8	84,440.8	82,706.3
Performance Index*, ranking on 141 economies	139	112	-
Potential Index**, ranking on 141 economies	14	-	-
Number of Greenfield investments***	38	24	-
FDI inwards (in % of GFCF****)	-3.4	17.4	-
FDI stock (in % of GDP)	30.8	37.2	-

Source:

Note: * The UNCTAD Inward FDI Performance index is based on a ratio of the country's share in global FDI inflows and its share in global GDP. ** The UNCTAD Inward FDI Potential index is based on 12 economic and structural variables such as GDP, foreign trade, FDI, infrastructures, energy use, R&D, education, country risk. *** Green field investments are a form of foreign direct investment where a parent company starts a new venture in a foreign country by constructing new operational facilities from the ground up. **** Gross fixed capital formation (GFCF) measures the value of additions to fixed assets purchased by business, government and households less disposals of fixed assets sold off or scrapped.

Why you should choose to invest Finland

Strong points: The country's strong points are:
- Political stability;
- A strategic geographic location between Scandinavia, Russia and the Northern European expanding markets;
- A multilingual population;
- One of the least corrupt countries in the world;
- The significant investment done in Research and Development expenses (ranked 3^rd in the world);
- An extremely industrialised economy, based mainly on the free market and which showed a per capita return similar to the United Kingdom, France and Germany; and
- One of the most competitive economies in the world, according to WEF Global Competitiveness Report 2007-2008.
Weak points: Finland's main weak points are:
- A limited domestic market; and
- High taxation rates.
Government measures to motivate or restrict FDI: In the past years, Finland has made considerable progress in eliminating discriminatory regulations against foreign investors. The government's clear intention is to promote the country's integration into the European economic zone. Finlands strategic geographic location, situated between its European Community partners and the newly independent Eastern European states, gives it a definite advantage.
Bilateral investment conventions signed by Finland: Finland is a signatory to 56 conventions.

Procedures relative to foreign investment

Freedom of establishment: Guaranteed
Acquisition of holdings: Possible
Obligation to declare: Certain acquisitions of large Finnish companies may require follow-up clearance from the Ministry of Employment and the Economy in accordance with the act on the control of foreign acquisitions of Finnish companies. The purpose of the clearance is to protect essential national interests.
Competent organization for the declaration: Ministry of Employment and the Economy
Requests for specific authorizations: A non-EEA person or company operating in Finland must obtain a license or a notification when starting a business in the regulated forms of trade such as banking and insurance sector.

Finding assistance for further information

Investment aid agency: Finnvera
Finnish Funding Agency for Technology and Innovation
The Finnish Innovation Fund
Finnish Investment Promotion Agency
The representations of the Finnish Investment Promotion Agency abroad
Other useful resources: Enterprise Finland
The EU website on SMEs and Entrepreneurship