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Scaling your company in Finland could entail having to set up a subsidiary. The number of subsidiary laws and compliance issues can seem daunting. Instead of going at it alone, G-P is here to guide you every step of the way.

How to set up a Finland subsidiary

Before you can set up a 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?

Often, separate cities and regions can have different Finland subsidiary laws and expenses for incorporation. Languages also change by region. Most people in Finland 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.
  • Select at least 1 shareholder (the company’s shareholders must contribute a minimum share capital of 2,500 euros).
  • Outline 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 and attract international 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 begin operating. 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 contradictions with 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.

Other important considerations

You’ll need both money and time to set up a subsidiary in Finland. The average total fee to get your subsidiary off the ground is currently around EUR 12,000. The process can take anywhere from 14 days to 10 weeks, and that’s before you can even start hiring.

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.

Enter new markets with G-P — no new entities required.

Beat the competition and enter new markets in minutes, not months, with G-P. We’ve paired our industry-leading team of in-region HR and legal experts with our #1 Global Growth Platform™ to help you hire compliantly in 180+ countries, eliminating the need to set up local entities or subsidiaries.

Get in touch today to learn more about how we can streamline the global growth process.

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