Expanding your company into Finland could mean having to set up a subsidiary. The number of subsidiary laws and compliance issues can seem daunting. Instead of muddling through it, Globalization Partners can help you expand hassle-free with global PEO services.
How to Set Up a Finland Subsidiary
Before you can open your Finland subsidiary, your company should consider multiple questions. What industry and type of business do you want to open? Where will the headquarters be located, and what nationality will the individuals be? Do you have any trade agreements or relationships to consider?
It’s best to choose the location for your building cautiously. Often, separate cities and regions can have different Finland subsidiary laws and cost for incorporation. Languages also change by region. Most Finnish citizens speak Finnish, but a small minority speak Swedish.
Finland’s Limited Liability Companies Act governs the Finland subsidiary setup process as well as limited liability companies, limited partnerships, branches, or representative offices. The steps for setting up a Finland subsidiary include:
- Choose a private or public limited liability company
- Figure out your management structure
- Open a bank account with minimum share capital
- Submit multiple documents including Foundation deeds, Memorandum of Association, description of the company’s business and banking activity, information on all your shareholders and directors, and notarized copies of passports
- Submit a Start-up Notification of an LLC application with accompanying documents
- Check your business name
- Register for pension, accident, and medical insurance
Finland Subsidiary Laws
Finland subsidiary laws try to promote foreign investors. The setup process is also similar to the procedure for most countries in the EU. The law does require multiple documents before you can officially start working at your subsidiary. These include:
- A certificate from auditors confirming your shares under the Limited Liability Companies Act
- A declaration of incorporation under the act
You’ll need to submit these documents and others listed above to the Finnish Trade Register along with your proposed business name. All business names must be checked for any violations of current names or trademarks.
Benefits of Setting Up a Finland Subsidiary
Choosing to open a subsidiary in Finland offers some benefits. A subsidiary can operate independently from a parent company. This independence allows you to create a different company culture that better fits Finland’s employment practices.
Outsourcing your HR, payroll, and expansion needs with Globalization Partners has even more benefits. We take the stress out of expanding by handling all matters from hiring to compliance for you. We will employ workers on your behalf to help you get started faster. The liability is on our shoulders every step of the way so that you can focus on running your company.
Other Important Considerations
You’ll need both money and time to set up a subsidiary in Finland. The average total fees to get your subsidiary off the ground is currently around $13,347.60 in US currency based on the exchange rate. The process can take anywhere from 14 days to 10 weeks, and that’s before you can even start to hire employees.
You should also consider the time, money, and resources needed to travel back and forth to Finland. Setting up a subsidiary on your own will limit your time at the parent company, and it could pull other essential employees away from their work. You will also need the money to fly to Finland and back at different steps throughout the process.
Let Globalization Partners Help With Your Expansion
If you’re ready to expand to Finland, you don’t have to figure out everything alone. Globalization Partners is on your side and prepared to help with whatever you need. Contact us today to learn more about our services.