1) Corporate forms in Finland
Corporate forms – overview
Oy (Private limited company)
Oyj (Public limited company)
Branch
Application
The most common form of
company for Finnish businesses,
from very small up to large
companies.
Special form of the Oy tailored
for companies listed in the stock
exchange or considering to go
public at some point in the future.
Engages business or trade
activities from a permanent place
of business in Finland but in the
name of the foreign company.
Registration
Must be registered at Trade
Register and Tax Administration.
Must be registered at Trade
Register and Tax Administration.
Must be registered at Trade
Register and Tax Administration.
Capital
requirement
Minimum EUR 2,500
Minimum EUR 80,000
Not required
Liability
Limited liability
Limited liability
Unlimited liability
Management
A board of directors consisting of
one or more persons. If less than
three, a substitute member must
be appointed. Optionally one
managing director for running
business. Optional advisory
board.
A board of directors consisting of
one or more persons. If less than
three, a substitute member must
be appointed. Optionally one
managing director for running
business. Optional advisory
board.
Company’s domestic management is at the same time branch
management (must be registered). Additional authorized
persons may be appointed.
Place of
management
At least one of the members of
the board of directors as well as
a possible substitute member
and a possible managing director
must be a EEA resident (citizenship not relevant).
At least one of the members of
the board of directors as well as
a possible substitute member
and a possible managing director
must be a EEA resident (citizenship not relevant).
A private indivudual with residence
in Finland must be appointed as
authorized to accept service of
documents for companies
resident outside the EEA.
Accounting
Annual financial statements.
At least one independent auditor
with public license (exceptions
apply for very small companies).
Annual financial statements.
At least one independent auditor
with public license.
Annual financial statements for
main company as well as for
branch. Company’s domestic
financial statements must be
registered in Finland.
Tax
Corporate income tax rate
of 20%.
Corporate income tax rate
of 20%.
Incomes from permanent
e
­ stablishment in Finland is
subject to a corporate income
tax rate of 20%.
Must be recorded in a deed of
formation, dated and duly signed
by the founders.The deed of
formation must be contain
a proposal for the articles of
association.
Resolution by the company’s
management and subsequent
registration.
Incorporation Must be recorded in a deed of
formation, dated and duly signed
by the founders.The deed of
formation must be contain
a proposal for the articles of
association.
Corporate
law
The New Finnish Companies Act. The New Finnish Companies Act. Act on the Right to Excercise
Business (122/1919 as amended).
Source: BJL BERGMANN Attorneys at Law, www.bjl-legal.com
Invest in Finland, Finpro Porkkalankatu 1, FI-00180 Helsinki, Finland Telephone +358 204 695 555 Fax +358 204 695 201 www.investinfinland.fi
