In short
The usual structure is the Oy (private limited company), with no minimum share capital. Since 2026 all filings are online; the start-up notification costs €400 and is processed in about 1–2 weeks, and it must be filed within 3 months of signing the memorandum. At least one ordinary board member, one deputy and the managing director must live in the EEA, or have a PRH permit (€150 + €6.50). Corporate tax is 20% (a cut to 18% from 2027 is proposed), VAT 25.5% above €20,000 turnover, and dividends to US shareholders are taxed at 15%, 5% or 0% under the treaty. Small companies need an auditor once they pass two of €100,000 assets, €200,000 sales and 3 employees.
Finnish company: key facts
Last verified 28 September 2026| Usual company type | Oy (private limited company); no minimum share capital since 2019# Source: PRH: limited liability company |
|---|---|
| Registration | €400 online (2026); online filing only since 2026; processed in about 1–2 weeks# Source: PRH: start-up notification online · PRH: mandatory online filing from 2026 · PRH: processing times |
| Board residence rule | At least one ordinary board member, one deputy and the managing director must live in the EEA — or get a PRH permit (€150 + €6.50)# Source: PRH: permits to persons from outside the EEA |
| Corporate tax | 20%; a cut to 18% from 2027 has been proposed to Parliament (Sep 2026)# Source: Ministry of Finance: proposal to reduce corporate tax (Sep 2026) |
| VAT | 25.5% (13.5% and 10% reduced); registration above €20,000 turnover a year# Source: Finnish Tax Administration: VAT rates · Finnish Tax Administration: VAT for small businesses |
| Dividend withholding | 20% to foreign companies, 30% to non-resident individuals; US treaty 15%, 5% (10%+ of votes), 0% (80%+ for 12 months)# Source: Finnish Tax Administration: paying dividends to non-residents · IRS: Finland tax treaty documents |
| US tax treaty | Signed 1989, protocol 2006; saving clause lets the US tax its citizens# Source: IRS: Finland tax treaty documents · IRS: US–Finland income tax treaty |
| Audit | Required if two of these are exceeded in both of the last two years: €100,000 balance sheet, €200,000 net sales, 3 employees# Source: Auditing Act 1141/2015 (Finlex translation) |
| Filing deadlines | Tax return within 4 months of the period end; financial statements to PRH within 8 months# Source: Finnish Tax Administration: company tax return deadline · PRH: filing financial statements (2026) |
| Beneficial owners | Owners of more than 25% must be registered; PRH fines €300 if details are missing# Source: PRH: beneficial owners reminder (2026) |
| Employer pension cost | TyEL pension about 24.4% of pay in 2026, of which the employer pays about 17.1%# Source: Finnish Centre for Pensions: social insurance contributions 2026 |
| US anti-deferral tax | GILTI renamed NCTI from 2026; Finland's 20% is above the 18.9% threshold — but a cut to 18% would fall below it# Source: US Code: 26 USC 951A (net CFC tested income) · eCFR: 26 CFR 1.951A-2 (high-tax exclusion) · Ministry of Finance: proposal to reduce corporate tax (Sep 2026) |
Not American?
Canadians, Australians, Brits and other non-EU citizens: the same rules apply
Finnish company law is the same for every foreign founder, so Canadians, Australians, New Zealanders and Brits register an Oy exactly as described here. Only a few points differ:
- Canada
- Australia
- New Zealand
- United Kingdom
- Japan
- South Korea
- + other visa-free countries
| Living in Finland | A company does not give you residence. Non-EU founders who want to live in Finland need a permit, such as the start-up permit. |
|---|---|
| Home-country tax | US citizens are taxed on worldwide income and have extra filings (Form 5471, FBAR, NCTI). Other nationals usually aren't taxed this way. |
| Tax treaty with Finland | Finland has income tax treaties with the US and many other countries, including Canada, Australia, New Zealand and the UK. |
| Documents from abroad | Need an apostille; the US, Canada (since 11 Jan 2024), the UK, Australia and NZ issue them.Source: HCCH: Apostille Convention status table |
At a Glance
Finnish Company Formation in Numbers
Why Finland
Why Americans Register Companies in Finland
Finland scores near the top for rule of law and low corruption, its institutions are predictable and its administration is digital. One online notification registers the company with the Trade Register and the Tax Administration together.
It is also a base for the Nordic and Baltic markets, with a skilled engineering workforce. The catch for Americans living abroad is the EEA residence rule for board members — plan for it from the start.
Business Structures
Which Entity Type Is Right for You?
Private Limited Company
Oy — osakeyhtiö
The standard choice for foreign founders. No minimum share capital. Needs at least one board member and, if there are fewer than three, a deputy. One ordinary member, one deputy and any managing director must live in the EEA — or get a PRH permit.
- Min. capital
- €0
- Board
- 1+ member and a deputy
- Liability
- Limited to capital
Public Limited Company
Oyj — julkinen osakeyhtiö
For listed companies and public share offerings.
- Min. capital
- €80,000
Private Trader
Toiminimi
Unlimited personal liability. The trader must live in the EEA or get a PRH permit.
- Min. capital
- None
- Liability
- Unlimited
General / Limited Partnership
Ay / Ky
Two or more partners; general partners are personally liable. Rarely used by non-resident founders.
- Min. capital
- None
- Liability
- Unlimited for general partners
Tax Environment
Finland's Corporate Tax Framework (2026)
Finnish companies pay a flat 20% corporate tax. On 3 September 2026 the government proposed cutting it to 18% from tax year 2027 and extending loss carry-forward from 10 to 25 years; Parliament has not yet decided.
Under the US–Finland treaty (1989, protocol 2006), dividends are taxed at 15% in general, 5% for a US company holding at least 10% of the votes, and 0% for a company holding 80% or more for 12 months. Without treaty relief, Finland withholds 30% for non-resident individuals and 20% for foreign companies. Interest and royalties are generally exempt under the treaty.
US citizens and Green Card holders are taxed on worldwide income. Owning a Finnish Oy usually means Form 5471 and an FBAR if your foreign accounts exceed $10,000 in total. From tax years starting in 2026, GILTI has been renamed net CFC tested income (NCTI). Finland's 20% rate is above the 18.9% high-tax threshold, so the high-tax exclusion is often available — but if the 18% rate passes, it would generally stop applying from 2027. A private Oy can elect disregarded status (Form 8832). The treaty's saving clause lets the US tax its citizens as if the treaty did not exist. Consult a US international tax adviser before incorporating.
Step-by-Step Process
How to Register a Company in Finland
Registration is online only since 2026 through the Finnish Business Information System (YTJ). One start-up notification registers the company with PRH and the Tax Administration (prepayment, VAT and employer registers). No notary is needed.
Plan the board and the EEA rule Decision
At least one ordinary board member, one deputy and the managing director (if any) must live in the EEA. Otherwise apply to PRH for a permit (€150 + €6.50 per decision). The rule depends on residence, not citizenship.
Check the company name ~1 day
The name must be distinct and include "Oy" or "osakeyhtiö". Check availability in the YTJ/Trade Register search.
Sign the memorandum of association No notary
The founders sign the memorandum, which includes the articles. The notification must be filed within 3 months of signing, or the company is not formed.
Pay in any share capital Banking
No minimum capital is required. If you set capital, pay it in and include the receipt with the notification.
File the start-up notification online €400
File on ytj.fi and pay €400. People without a Finnish personal identity code usually file through an authorised representative, such as an accountant or lawyer. Processing takes about 1–2 weeks.
VAT registration With registration
Register for VAT with the notification if you expect turnover above €20,000 a year, or voluntarily earlier.
Register as an employer (if hiring) If hiring
Arrange statutory pension insurance (TyEL, about 24.4% of pay in 2026, of which the employer pays about 17.1%) and other employer insurances.
Costs & Fees
What Does It Cost to Register a Company in Finland?
| Cost item | Notes | Amount |
|---|---|---|
| Registration fee | Online start-up notification for an Oy (2026). | €400 |
| PRH permit for non-EEA board members | Per decision. | €150 + €6.50 |
| Share capital | No legal minimum. | from €0 |
| Accounting | Bookkeeping from a provider (estimate). | from about €95 a month |
| Business address | Virtual office in Helsinki (estimate). | about €840 a year |
Fees from PRH; service costs are provider prices. Source: PRH: start-up notification · PRH: permits for non-EEA residents · 1Office price list
Ongoing Obligations
Post-Registration Requirements
Tax return and financial statements
File the company tax return within 4 months of the end of the accounting period, and the financial statements with PRH within 8 months. Late filing leads to fees.
Board
Keep an EEA-resident ordinary board member, deputy and managing director — or valid PRH permits — at all times.
Audit
An auditor is needed once the company exceeds two of these in both of the last two years — €100,000 balance sheet, €200,000 net sales, 3 employees. Many growing startups reach this quickly.
Beneficial owners
Register owners of more than 25% with the Trade Register and keep the details current; PRH charges €300 if details are missing.
Expert Notes
What Americans Should Know Before Registering in Finland
The EEA board rule shapes your structure
A sole American director living in the US needs PRH permits for the board seat and the deputy — or an EEA-resident co-director and deputy. Once you live in Finland, the rule is met.
Online only, but not always self-service
Filing is online since 2026. Without a Finnish personal identity code you usually file through an authorised representative.
The auditor threshold is low
Finland's audit limits are very low (€100,000 / €200,000 / 3 employees). Budget for an auditor once you grow.
Watch the proposed 18% rate
A lower Finnish rate is good for Finnish tax — but at 18% the US high-tax exclusion would generally stop applying from 2027.
A company is not a permit
Owning an Oy does not let you live in Finland. See our startup guide for the start-up permit.
A Finnish company is right for you if…
- You want a stable, transparent Nordic base with EU market access
- You can meet the EEA board rule or apply for PRH permits
- You plan to hire Finnish engineers or use R&D incentives
- You have checked the US tax position, including the proposed 18% rate
- You can budget for accounting and, once you grow, an auditor
FAQ
Frequently asked questions
Is there a minimum share capital for a Finnish Oy?
No. Since July 2019 a private limited company can be formed without share capital.
Do I need a Finnish-resident director?
At least one ordinary board member, one deputy and the managing director must live in the EEA — not necessarily Finland. Otherwise you need a PRH permit (€150 + €6.50 per decision).
How much does it cost and how long does it take?
The online start-up notification costs €400 (2026) and is processed in about 1–2 weeks. Paper filing ended in 2026.
What is Finland's corporate tax rate?
20%. A cut to 18% from 2027 has been proposed to Parliament but not yet passed.
When do I need to register for VAT in Finland?
When turnover exceeds €20,000 a year (since 2025). The standard rate is 25.5%.
Finland
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Company formation · other countries
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