🇫🇮 Company formation

Company Formation in Finland: Types, Taxes and Costs

Forming a company in Finland takes roughly one to three business days when filed online through the YTJ and PRH service using Finnish e-identification. The standard vehicle is the osakeyhtio (Oy), a private limited company that since 2019 needs no minimum capital and can be founded with EUR 0, and it pays a flat 20% corporate tax. Finland's standard VAT (ALV) is 25.5%, raised from 24% in September 2024, and at least one board director must reside in the EEA unless the PRH grants an exemption.

Last updated July 2026 · 8 min read

Finland at a glance

Finland is one of the EU jurisdictions founders most often use today, especially while the EU-wide 28th Regime (EU Inc) is still a proposal. Below are the verified essentials: company types, tax, capital, timing and whether you can set up remotely.

Company types in Finland

  • Osakeyhtio (Oy) The private limited company and default vehicle for startups and SMEs. No minimum share capital since 1 July 2019, so it can be founded with EUR 0.
  • Julkinen osakeyhtio (Oyj) The public limited company for larger firms or a listing. Minimum capital EUR 80,000.
Company formation in Finland: key facts (last reviewed July 2026)
Corporate tax Flat 20% corporate income tax, with no separate municipal corporate tax. A small public-broadcasting (YLE) tax also applies. A cut to 18% is proposed from 2027, but 20% is in force for 2026.
VAT rate Standard VAT (ALV) is 25.5%, raised from 24% on 1 September 2024 and one of the highest in the EU. Reduced rates are 13.5% and 10%. The small-business threshold is EUR 20,000 of turnover.
Dividends & payroll taxes Dividends from unlisted companies get partial relief tied to the company's net assets, with the taxable slice treated as 30% or 34% capital income. Top personal rates land in the low 50s, and employer contributions add roughly 20% on salaries.
Minimum share capital None for a private limited company (Oy): the former EUR 2,500 minimum was abolished on 1 July 2019, so an Oy can be founded with EUR 0. A public company (Oyj) requires EUR 80,000.
Setup time Filed online via the YTJ and PRH service, an Oy is usually registered in about 1 to 3 business days. Founders without a Finnish identity code should allow extra time to obtain one.
Remote setup Partial. Incorporation is fully online at ytj.fi but the service runs only in Finnish and Swedish and requires Finnish strong e-identification; the fast package needs every officer to hold a Finnish identity code, so founders without it use a local agent. Paper filing ended on 1 January 2026.
Director / residency At least one ordinary board member must reside in the EEA, and a managing director (if appointed) must also reside in the EEA; otherwise the company needs an exemption from the PRH. Directors need not be Finnish citizens.
Banking options Banks include Nordea, OP, Danske Bank and Aktia, though non-resident onboarding can be slow. Fintech options popular with founders include Holvi (a Finnish provider), Wise and Narvi. Because an Oy needs no share capital, no paid-in deposit is required to incorporate.
Our formation service from around €100 to €200 (estimated). You get a fixed quote in your free plan before you commit.

Finland abolished the minimum share capital for an Oy in 2019, so a company can be incorporated with EUR 0. The one-stop YTJ notification registers the company with both the Trade Register and the Tax Administration at once. Corporate tax is a flat 20%, and the 25.5% VAT (since September 2024) is one of the EU's highest.

How to register a company in Finland

Step by step, this is how a Finland formation actually runs:

  1. Draft the Oy documents. Articles plus the memorandum of association; no minimum capital since 2019.
  2. Choose the filing route. The ytj.fi online service needs Finnish e-identification (and runs in Finnish and Swedish); foreign founders without it file on paper or via a local agent.
  3. Register with the PRH. The Trade Register processes online filings in days; paper takes longer. Non-EEA board compositions may need a permit exemption check.
  4. Tax registrations. Join the prepayment register, VAT register (threshold EUR 20,000) and employer register as needed, all through the same filing.
  5. Banking. Finnish banks onboard non-residents slowly; fintech accounts are the common bridge.

We handle each step with licensed local counsel, so the paperwork, registered address and filings are done correctly the first time.

What company formation in Finland costs

The online PRH fee is EUR 240 (paper costs more), and with zero minimum capital the entry cost is among the lowest in the Nordics. A local agent for foreign founders adds a few hundred euros. Accounting for a small Oy typically runs EUR 100 to 250 a month.

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Form your Finnish company in days

Tell us where you live and what you are building. Our formation service starts from around €100 to €200 (estimated); we confirm the right structure for Finland, give you a fixed quote, and form the company with licensed counsel.

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Who can form a company in Finland

Founders from outside the EU can own and run a Finnish company, with the cross-border requirements handled for you. We flag any residency or local-agent rule for Finland up front, so there are no surprises.

Finland fits founders with Nordic-Baltic business, hardware and deep-tech teams tapping Finnish ecosystems, and EEA founders who can use the e-ID route. Fully remote non-EEA founders face language and identification friction that Estonia solves next door.

After registration: what Finland expects each year

Financial statements are filed with the Trade Register (via the tax return process) and the corporate tax return is due four months after year end. VAT reporting is monthly, quarterly or yearly by size. Small companies skip audit below thresholds; board and shareholder records must be kept current.

Finland and the 28th Regime (EU Inc)

EU Inc, the proposed 28th Regime, would let you register one company valid across all 27 EU member states. It is not law yet (expected around 2027-2028), so a Finnish company is one of the ready options you can use today. Forming an EU company now also positions you to adopt EU Inc later, as we cover in how to prepare an EU Inc company. To weigh Finland against other countries, see company formation in Europe.

Frequently asked questions

Can a foreigner open a company in Finland?

At least one ordinary board member must reside in the EEA, and a managing director (if appointed) must also reside in the EEA; otherwise the company needs an exemption from the PRH. Foreign founders can own the company from abroad, and we handle the cross-border steps, from identity checks to filings.

How long does company formation in Finland take?

Registration usually takes about 1 to 3 days once your documents are ready. You get a firm timeline for your own case in your free plan.

What corporate tax does a company in Finland pay?

Corporate tax is 20%, and standard VAT is 25.5%. We confirm the exact rates for your activity before you commit.

Can I form a company in Finland remotely?

Mostly. Most steps are remote, though one (such as notarisation or opening a bank account) can need a video or in-person appointment. We use the remote-friendly route wherever one exists.

What does it cost to form a company in Finland?

The online PRH fee is EUR 240 (paper costs more), and with zero minimum capital the entry cost is among the lowest in the Nordics. Our end-to-end formation service starts from around €100 to €200 (estimated); your free plan turns that into one fixed quote.

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