Finland for founders: company, tax and banking
FinlandEurope- Residence of board and managing director
- At least 1 ordinary board member, 1 deputy member (if any) and the managing director (if any) in the EEA, unless PRH grants a permit
- As of 3 November 2026 · [3]
Overview
Finland is in the EU and the euro area. PRH, the Finnish Patent and Registration Office, keeps the Trade Register, and the same start-up notification can also register the company with Vero, the Finnish Tax Administration. Since 1 January 2026, companies file their notifications to the Trade Register online only.
Limited companies pay 20% income tax on their profits. Dividends paid abroad carry withholding tax of 30% for individuals and 20% for companies in general, and tax treaties can reduce it. A Finnish company's dividends from Finnish or EU and EEA companies are, with certain exceptions, tax-exempt, and VAT is 25.5% as standard.
Management faces a residence rule rather than a nationality rule. At least one ordinary board member, at least one deputy member where the board has deputies, and any managing director must live in the EEA unless PRH grants a permit. Founders and board members without a Finnish personal identity code register through PRH's routes for foreign persons.
Redomiciled arranges the Finnish formation and the yearly obligations with Finnish accountants and corporate service providers. Questions of Finnish tax go to Finnish advisers, and questions of your own tax position to advisers where you live.
Finland company formation: setting up a Finnish Oy
A Finnish osakeyhtiö (Oy) is a limited company founded by a memorandum of association signed by all its shareholders and registered by PRH. As of November 2026, a private Oy can be formed with EUR 0 of share capital, must be notified within three months of signing, and pays 20% income tax on its profits.
The shareholders sign a memorandum of association with the articles, and the company is notified to the Trade Register within three months of signing, or the incorporation lapses. Shareholders may be individuals or companies; PRH states that ordinary businesses face no restrictions on share ownership based on residence or citizenship.
Since 1 January 2026, notifications are filed online only, at ytj.fi or through PRH's online forms, with strong electronic identification. Where nobody responsible for the company has a Finnish personal identity code, the filing is made by a contact person with Finnish identification, by a responsible person using an accepted e-ID from certain EU countries on PRH's form for foreign persons, or by an attorney.
The board has one to five members unless the articles say otherwise, with at least one deputy if it has fewer than three; a managing director is optional. At least one ordinary board member, at least one deputy member where the board has deputies, and any managing director must live in the EEA unless PRH grants a permit. A representative authorised to receive service is needed unless an EEA-resident board member, managing director or signatory is registered.
The Trade Register Act sets PRH the target of registering a limited company within five working days of receiving everything needed for an electronic start-up notification. Beneficial owners are filed with PRH, also when there are none, and the same start-up notification can register the company for VAT and as an employer with Vero.
A foreign company can instead open a branch. It files a start-up notification for the branch before operations begin, a company from outside the EEA also needs a permit from PRH, and the branch files the foreign company's financial statements within six months of its year end.
Redomiciled coordinates the registration, the representative for service where one is needed, bookkeeping, financial statements, and tax, VAT and payroll registrations with Finnish providers; Finnish advisers give the legal and tax advice.
Who it suits
Founders who want a euro-area company
You invoice in euro and want an EU limited company that can start without share capital.
Companies hiring or selling in Finland
You need a local employer and a Finnish VAT number for customers and staff in Finland.
Groups with management in the EEA
An ordinary board member, a deputy member where the board has deputies, and the managing director living in the EEA meet the residence rule without a PRH permit.
Holding structures
Dividends from Finnish and EU or EEA companies are, with exceptions, tax-exempt, and qualifying gains on fixed-asset shares are tax free.
Requirements
- Required
Memorandum signed by all shareholders
With the articles of association; the company is notified within three months of signing.
- Required
Board of one to five members
At least one deputy if there are fewer than three members; board members are natural persons of age.
- Required
EEA residence in management
At least one ordinary board member, at least one deputy member where the board has deputies, and any managing director must live in the EEA unless PRH grants a permit.
- Required
Registered office in Finland
The articles name the Finnish municipality where the company has its registered office.
- Required
Beneficial owners filed
With PRH, including a notification when there are none, and every change without delay.
- Depends on your case
Representative for service
Needed unless an EEA-resident board member, managing director or signatory is registered.
- Depends on your case
Share capital
Optional for a private Oy; where shares are paid in cash, payment goes into a company account.
- Depends on your case
Auditor
Not required while the company stays within the size limits of the Auditing Act.
Documents
- Memorandum of association with articlesSigned by all shareholders; it names the board and, where there is one, the managing director.
- Start-up notificationFiled online with the Trade Register, also covering VAT and employer registration with Vero where needed.
- Evidence of share paymentWhere shares are paid for, an auditor's certificate or, without an auditor, other evidence of payment.
- Beneficial owner detailsThe natural persons who own more than 25% or control the company, or a notification that there are none.
- Identification of foreign personsAn accepted e-ID on PRH's form for foreign persons, or a contact person or attorney who files for the company.
- Board
- 1 to 5 members unless the articles say otherwise; at least 1 deputy with fewer than 3As of 3 November 2026 · [1]
- Managing director
- OptionalAs of 3 November 2026 · [1]
- Representative to receive service
- Needed unless an EEA-resident board member, managing director or signatory is registeredAs of 3 November 2026 · [3]
- Notification deadline
- Within 3 months of signing the memorandum, or the incorporation lapsesAs of 3 November 2026 · [1]
- Filing with the Trade Register
- Online only since 2026-01-01As of 3 November 2026 · [6]
- Registration processing time (statutory target)
- Within 5 working days of a complete electronic start-up notificationAs of 3 November 2026 · [7]
- Beneficial owners
- Filed with PRH, also when there are none; changes without delayAs of 3 November 2026 · [8]
- Withholding tax on dividends to non-residents
- 30% for individuals, 20% for companies in general; tax treaties can reduce itAs of 3 November 2026 · [10]
- VAT registration
- Required above EUR 20,000 of turnover in a calendar yearAs of 3 November 2026 · [12]
- Financial statements
- To the Trade Register within 8 months of the financial year endAs of 3 November 2026 · [13]
- Auditor
- Not required if no more than 1 of these is exceeded in the last 2 years: EUR 100,000 balance sheet, EUR 200,000 net sales, 3 employeesAs of 3 November 2026 · [14]
- Corporate tax return
- Within 4 months after the last calendar month of the accounting yearAs of 3 November 2026 · [15]
- Earnings payment reports (Incomes Register)
- Within 5 days of the payment dateAs of 3 November 2026 · [17]
- Employer's health insurance contribution
- 1.91% (2026)As of 3 November 2026 · [18]
Timeline
- 1Structure and rolesDecide the shareholders, any holding company above, the board and whether to appoint a managing director, and how the residence rule is met.
- 2Memorandum of associationAll shareholders sign the memorandum with the articles; any share capital is paid in.
- 3Online start-up notificationFile within three months of signing; the statutory target is registration within five working days of a complete electronic notification.
- 4Tax registrationsVAT once turnover exceeds EUR 20,000 in a calendar year, and the Employer Register for regular employers, both with Vero.
- 5Bank and bookkeepingOpen the operating account after the bank's due diligence and set up the accounts the financial statements will be based on.
- 6Annual cycleEarnings payment reports within five days of each payday, the tax return within four months and the financial statements within eight months of the year end.
Tax notes
- Limited companies pay 20% income tax on their profits. The company files its own tax return electronically, even without activity, within four months after the end of the last calendar month of its accounting year.
- Dividends paid to non-residents carry withholding tax at source of 30% for individuals and, in general, 20% for companies. A tax treaty can reduce the rate when the recipient shows it is entitled to it.
- Dividends that a Finnish company receives from a company resident in Finland or in an EU or EEA country are, with certain exceptions, tax-exempt. Gains on shares are tax free if the shares are fixed assets, the seller has held at least 10% of the share capital for at least a year, and the company sold is not a real estate company.
- VAT is 25.5% as standard, with reduced rates of 13.5% and 10%. A company must register for VAT once its turnover exceeds EUR 20,000 in a calendar year, and may register voluntarily below that.
- Regular employers register with the Employer Register, report each salary payment to the Incomes Register within five days of the payment date and pay the employer's health insurance contribution, 1.91% for 2026.
General information, not tax advice. Your position depends on your circumstances.
Banking fit
- Without share capital, the Oy can be formed before any bank account exists; cash capital can go into a comparable foreign account as well as a Finnish one.
- Finnish banks check that a Finnish company's beneficial owners are in the register, so filing them with PRH before applying keeps the file consistent.
- FIN-FSA has flagged rising rejections of legal persons' account applications, so a complete description of the business and its money flows matters.
Keeping a Finnish company in good standing
Approved financial statements are filed with the Trade Register within eight months of the end of the financial period, also for a company without activity. An auditor is not required while no more than one of three limits is exceeded in the last two years: EUR 100,000 balance sheet total, EUR 200,000 net sales and 3 employees.
The company keeps its beneficial owner details current with PRH and files changes without delay. At least one ordinary board member, at least one deputy member where the board has deputies, and any managing director continue to live in the EEA unless PRH has granted a permit, and a representative for service stays registered where the law requires one.
The tax return, earnings payment reports and VAT returns follow Vero's deadlines, and the board keeps the company's own list of beneficial owners.
Questions
How do I register a Finnish Oy without a Finnish identity code?
Since 1 January 2026 filing is online only. Without Finnish identity codes, the notification is filed by a contact person with Finnish identification, by a responsible person using an accepted e-ID from certain EU countries on PRH's form for foreign persons, or by an attorney.
How long does PRH take to register an Oy?
The Trade Register Act sets PRH the target of registering a limited company within five working days of receiving all the information an electronic start-up notification needs. PRH also publishes the arrival dates it is currently processing.
Do board members of a Finnish Oy have to live in Finland?
No. At least one ordinary board member, at least one deputy member where the board has deputies, and any managing director must live in the EEA unless PRH grants a permit. A representative to receive service is needed unless an EEA-resident board member, managing director or signatory is registered.
Does a Finnish Oy need an auditor?
Not if no more than one of three limits is exceeded in both of the last two financial years: EUR 100,000 balance sheet total, EUR 200,000 net sales and 3 employees on average.
What are the yearly deadlines for a Finnish Oy?
Financial statements to the Trade Register within eight months of the year end, the tax return within four months after the last calendar month of the accounting year, and earnings payment reports within five days of each payday.
Can a foreign company open a branch in Finland?
Yes. It files a start-up notification for the branch before operations begin, and a company from outside the EEA also needs a PRH permit. The branch files the foreign company's financial statements within six months of its financial year end.
Banking in our network
We do not publish institution names: the right partner depends on your profile, and each institution keeps its own view on who it will serve.
60+
Banking partners across Europe in our network
No partner institution in our network is based here; companies and residents here are introduced to partners in other jurisdictions.
- A private Oy can be formed without share capital. Where shares are paid in cash, the money goes into a company account in a Finnish deposit bank, the Finnish branch of a foreign credit institution licensed to take deposits in Finland, or a comparable foreign account.
- Under the Act on Preventing Money Laundering a Finnish bank identifies the company and its beneficial owners, asks about the nature and extent of its business and why it needs the account, and for a Finnish company checks that its beneficial owners are entered in the register. Higher risk means enhanced measures.
- In a thematic review of September 2025 the Financial Supervisory Authority (FIN-FSA) found that the rejection rate of legal persons' account applications is rising and saw a de-risking phenomenon related to legal persons. It expects banks' procedures for declining a customer to take the customer's interests and what is reasonable into account.
Do I need a bank account to set up a Finnish Oy?
Not for the share capital if the company has none. If shares are paid in cash, the money goes into a company account in a Finnish deposit bank, the Finnish branch of a foreign credit institution, or a comparable foreign account.
What does a Finnish bank check before opening a company account?
It identifies the company and verifies its identity, identifies the beneficial owners, and obtains information on the business, its nature and extent, and why it uses the service. For a Finnish company it checks that the beneficial owners are in the register. Higher risk means additional documents and enhanced checks.
Can a Finnish bank turn my company down?
Yes. A bank that cannot carry out customer due diligence may not establish the relationship, and FIN-FSA says providers may refuse customers who do not give adequate information. FIN-FSA has also found a de-risking trend for legal persons and expects banks to weigh the customer's interests.
Does Finland's right to basic banking services cover companies?
No. FIN-FSA defines the retail customer entitled to basic banking services as a person who uses them mainly for purposes other than their occupation or business, so company accounts fall outside that right.
Questions
Can a foreigner set up a company in Finland?
Yes. PRH states that ordinary businesses face no residence or citizenship restrictions on owning shares. At least one ordinary board member, at least one deputy member where the board has deputies, and any managing director must live in the EEA unless PRH grants a permit, and founders without a Finnish identity code use PRH's routes for foreign persons.
What is the corporate tax rate in Finland?
20% on the profits of limited companies. Dividends paid to non-residents carry withholding tax of 30% for individuals and 20% for companies in general, which a tax treaty can reduce.
Is there a minimum share capital in Finland?
Not for a private Oy. A company can be started with or without share capital, and PRH records the share capital as EUR 0 where there is none.
Sources
- 1.Finlex: Limited Liability Companies Act 624/2006 (unofficial English translation), retrieved 2026-11-03
- 2.PRH: Limited liability companies, starting a company, retrieved 2026-11-03
- 3.PRH: Permits to persons from outside the EEA, retrieved 2026-11-03
- 4.Finlex: Enterprise Act 565/2023 (unofficial English translation), retrieved 2026-11-03
- 5.PRH: Filings with the Trade Register, special cases from 2026, retrieved 2026-11-03
- 6.PRH: Mandatory online filing with the Trade Register, retrieved 2026-11-03
- 7.Finlex: Trade Register Act 564/2023 (unofficial English translation), retrieved 2026-11-03
- 8.PRH: Notification of beneficial owners, retrieved 2026-11-03
- 9.Vero: Income taxes of limited liability companies and cooperatives, retrieved 2026-11-03
- 10.Vero: When dividends are paid out, retrieved 2026-11-03
- 11.Vero: Rates of VAT, retrieved 2026-11-03
- 12.Vero: How to register for VAT, retrieved 2026-11-03
- 13.PRH: Filing financial statements, limited liability companies, retrieved 2026-11-03
- 14.Finlex: Auditing Act 1141/2015 (unofficial English translation), retrieved 2026-11-03
- 15.Vero: Tax return of limited liability companies and cooperatives, retrieved 2026-11-03
- 16.Vero: Employer Register, retrieved 2026-11-03
- 17.Vero: Incomes Register, deadlines for reporting, retrieved 2026-11-03
- 18.Vero: Social insurance contributions, retrieved 2026-11-03
- 19.PRH: Start-up notification for branches, retrieved 2026-11-03
- 20.Vero: Dividends received by a limited liability company (FAQ), retrieved 2026-11-03
- 21.Vero: How does the participation exemption work? (FAQ), retrieved 2026-11-03
- 22.Finlex: Act on Preventing Money Laundering and Terrorist Financing 444/2017 (unofficial English translation), retrieved 2026-11-03
- 23.Finanssivalvonta (FIN-FSA): Customer due diligence and customer identification, retrieved 2026-11-03
- 24.Finanssivalvonta (FIN-FSA): Thematic review of the de-risking phenomenon (29 September 2025), retrieved 2026-11-03
- 25.Finanssivalvonta (FIN-FSA): Basic banking services, retrieved 2026-11-03
Plan your next step in Finland.
Answer a few questions and we come back with a recommendation for your situation, without obligation.