06.10.2010
Start up your business in Lappeenranta (Finland)
10 steps of how to set-up a company in Finland in EU The required ten steps to start up your company are easily managed with the guidance from Lappeenranta Business Development’s project managers and following through the internet guidance programs. Your steps start with a visit to our office and we will lead you throughout the whole process. The most common and convenient type of enterprise for foreign entrepreneur, is Osakeyhtiö(Oy), Limited Liability Company(Ltd). That is why this ten steps program is built according to establishing an OY. If you are planning to start up another type of company, contact us and find out the differences in process. 1. CONTACT US 2. CHECK OUR BUSINESS GUIDE 3. CHECK BUSINESS PERMISSIONS AND SUPPORT 4. CHOOSE A TYPE OF ENTERPRISE 5. GET A BOARD MEMBER FROM EEA 6. CHOOSE A BOOK KEEPER, AUDITOR AND INSURANCE COMPANY 7. FILL COMPANY FORMATION PACKAGE 8. GO TO BANK TO OPEN AN ACCOUT 9. GO TO ELY-CENTER AND REGISTRATE YOUR COMPANY 10. START RUNNING YOUR BUSINESS
1. Contact us at Lappeenranta Business Development at Kauppakatu 40D in Lappeenranta. You can also call us at +358 5 616 3400 or send us e-mail: businessdev@lappeenranta.fi. In Our initial consultation a project manager will be named for your company. Project manager will set you off with your path establishing
Lappeenranta Business Development Ltd Kauppakatu 40D | 53100 Lappeenranta | Finland
Tel. +358 (0)5 616 3400 Fax +358 (0)5 616 3410
Y-tunnus: 1565217-5 www.lsyp.fi
2/7 your business in EU in Lappeenranta. We will go over the required steps and documents and determine the amount of outside expertise required for your particular industry. 2. Enter the “Yritystulkki” internet site: http://www.jdc.fi/fi//index.php?id=1504. Read “Planning Your Business” –guide (YT1), prepare your Business Plan (YT3) and Economical Calculations (YT4). These files are available in English. 3. Investigate whether your field of business needs a permission or license in Finland and if your business can be supported in development or funding. A list of licensed trades in English: http://www.yrityssuomi.fi/default.aspx?nodeid=15806. Ask us about funding possibilities in Finland. 4. Choose a Type of enterprise. You can find information about different types and forms later in this guide and in here: http://www.prh.fi/en/kaupparekisteri/yrityksen_perustaminen.html. As we early mentioned, preferred type is Oy. 5. At least one member of the Board of Directors has to be a resident in EEA (European Economic Area). If you do not know a suitable board member you can ask us to assist you in meeting this requirement. 6. Choose your book keeper and auditor, if needed. Check the insurances you need to open. If you don’t know where to find them, check the listing in the appendixes or ask us. 7. Fill documents in Limited company formation package for your Finnish company. The formation package includes an Appendix Form 1 in English, which can only be used as a model when filling in the Finnish or Swedish Appendix Form. Download package in English in here: http://www.prh.fi/en/kaupparekisteri/yrityksen_perustaminen/osakeyhtio.html and in Finnish in here: http://www.ytj.fi/1631/1612/1650 (Osakeyhtiön perustamispaketti) 8. Go to bank. Use filled registration documents to open a corporate bank account. You can ask us about banks in Lappeenranta. Deposit a share capital for a limited liability company of minimum 2.500 EUR to your newly opened bank account. 9. Pay a registration fee 350 EUR for National Board of Patents and Registration of Finland in ELY-Centre located at Kauppakatu 40 D. You will get a business-ID(Y-tunnus) straight away. 10. Now you can start operating searching for suitable facilities for your business. Check our register of rentable and buyable premises and plots for construction in Lappeenranta region: http://www.toimitilat.lsyp.fi/default.asp?kieli=Englanti
Lappeenranta Business Development Ltd Kauppakatu 40D | 53100 Lappeenranta | Finland
Tel. +358 (0)5 616 3400 Fax +358 (0)5 616 3410
Y-tunnus: 1565217-5 www.lsyp.fi
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Types of enterprises in Finland
Yksityinen elinkeinonharjoittaja (Tmi) - Private entrepreneur An EEA resident may act as a private entrepreneur. Non-EEA residents need a permit from the National Board of Patents and Registration. With regard to the establishment of a business, citizenship is not of importance. The decisive factor is the individual's permanent place of residence. Avoin yhtiรถ (Ay) - General partnership There must be at least two partners (founders) in a general partnership. At least one of the partners in a general partnership must have a permanent place of residence, or, if the founder is a legal entity, be domiciled in the EEA. If none of the partners in a general partnership has a place of residence/domicile in the EEA, all partners from outside the EEA need a permit from the National Board of Patents and Registration. Kommandiittiyhtiรถ (Ky) - Limited partnership There must be at least two partners (founders) in a limited partnership, at least one of whom must be a general partner. At least one of the general partners in a limited partnership must have a permanent place of residence, or, if the founder is a legal entity, be domiciled in the EEA. Otherwise, a permit is required from the NBPR for all general partners that are not from the EEA. This requirement does not apply to the silent partners.
Osakeyhtiรถ (Oy, Oyj)- Limited liability company There must be one or more founders in a limited liability company. The new Companies Act does not any restrictions for the place of residence or domicile for share subscribers (even if the question is about a single-member company). It must also be noticed that if a limited liability company is a single-member company, that is, the company has only one shareholder and he/she is the only member of the Board, the Board must then have at least one deputy member. At least one of the Board members and deputy members must be resident in the European Economic Area, unless the National Board of Patents and Registration grants the company an exemption.
Osuuskunta (Ok) - Cooperative A cooperative may be established by no fewer than three founders. The founders may be private individuals or corporations, or foundations of other legal entities. A founder must become a member of the cooperative. The founder's place of residence or citizenship is not a decisive factor for the cooperative; foreigners may also act as founders. Non-EEA residents or those domiciled outside the EEA
Lappeenranta Business Development Ltd Kauppakatu 40D | 53100 Lappeenranta | Finland
Tel. +358 (0)5 616 3400 Fax +358 (0)5 616 3410
Y-tunnus: 1565217-5 www.lsyp.fi
4/7 may also act as founders. No legally incompetent or bankrupt person may act as a founder. A founder must become a member of the cooperative.
Branch of a foreign enterprise The branch of a foreign entrepreneur refers to the part of a foreign corporation or foundation that engages in continuous business or trade activities in Finland from a permanent establishment in Finland in the name of the foreign corporation or foundation. If the corporation or foundation is from outside the EEA, it must apply for a permit from the National Board of Patents and Registration for the establishment of the branch. The branch must submit a basic declaration to the trade register maintained by the National Board of Patents and Registration.
Start-up handling fees (2010) The handling fees for start-up notifications are as follows: • basic notification of a private entrepreneur EUR 75 • basic notification of a general partnership or a limited partnership EUR 180 • basic notification of a limited liability company, cooperative and branch of a foreign entrepreneur EUR 350.
Public financing opportunities In Finland enterprises can get funding from many government organizations. These financing companies are all segmented in different types and areas of business, science or development of Finnish enterprise world. There are many different types of funding available. Enterprises can, for example, get support for financing a development project, big investments like manufacturing device, energy-effectiveness etc. Smaller firms can also get support for example for hiring more staff. Funding can be in a form of grants, loans, guarantees, venture capital investments and export credit guarantees. Public financing is available from: ELY-center ELY-center is a Centre for Economic Development, Transport and the Environment. It fosters regional development by implementing and developing government activities in the regions. The Center promotes entrepreneurship, functioning of labor market, competence and cultural activities. ELY-center also ensures safe and smooth transport operations, healthy environment and sustainable use of natural resources in the regions and is in charge of functions related to immigration of labor force. Read more: www.ely-keskus.fi
Lappeenranta Business Development Ltd Kauppakatu 40D | 53100 Lappeenranta | Finland
Tel. +358 (0)5 616 3400 Fax +358 (0)5 616 3410
Y-tunnus: 1565217-5 www.lsyp.fi
5/7 Finnvera plc Finnvera plc is a specialized financing company owned by the State of Finland. It provides its clients with loans, guarantees, venture capital investments and export credit guarantees. Finnvera has official Export Credit Agency (ECA) status. Read more: www.finnvera.fi
Sitra Sitra is The Finnish Innovation Fund. It is an independent public fund which promotes the welfare of Finnish society, under the supervision of the Finnish Parliament. Sitra promotes stable and balanced development in Finland, the qualitative and quantitative growth of its economy and its international competitiveness and co-operation. Read more: www.sitra.fi
Tekes Tekes is a Finnish Funding Agency for Technology and Innovation. It is the most important publicly funded expert organisation for financing research, development and innovation in Finland. Tekes supports wide range of innovation activities in research communities, industry and service sectors. Read more: www.tekes.fi.
The Foundation for Finnish Inventions The Foundation for Finnish Inventions advises and supports private people and young companies in innovation and invention development. Read more: http://www.keksintosaatio.fi
Enterprise taxation in Finland Finnish Tax Administration’s information in English is available on www.tax.fi. The corporate tax rate is 26 percent of taxable income paid monthly in advance. Value added tax (VAT) is called in Finland arvonlisävero (ALV). There are three levels of ALV, depending of the type of goods or services. In most cases ALV is 23% of the price (since 01.07.2010). ALV rate is 13% for example in food, and 9% in books, medicine and cultural or sports –services.
Social costs Social costs of a worker are about 31% of salary. Costs consist of: - Employer social security payment - Health insurance payment - Labor pension insurance costs - Employers part from unemployment insurance payment
Lappeenranta Business Development Ltd Kauppakatu 40D | 53100 Lappeenranta | Finland
Tel. +358 (0)5 616 3400 Fax +358 (0)5 616 3410
Y-tunnus: 1565217-5 www.lsyp.fi
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Lappeenranta – A Base for a Successful Business in EU Dear clients and partners, we made this information package of establishing a business in Finland to make starting up business easier for foreign entrepreneurs and to help find answers to questions about business establishing process in one place. As the laws and orders in enterprise world evolve and change, we will update this document often. The latest version of this document can be downloaded from our homepage: http://www.lsyp.fi. In case that you have some questions about this information package or business in Finland, do not hesitate to contact Business Specialists of Lappeenranta Business Development Ltd. If you have a dream of your company in EU we are there to assist you with practical advice on strategic planning and financing options. With our partner network you can easily obtain all the business services necessary for establishing and operating a company in EU. We will help you to transform your idea into a European Success Story in Lappeenranta. Lappeenranta is an innovative international university city between two bustling metropolis, only 220 km from both St. Petersburg and Helsinki at the top of the tax-free sales in Finland. The most important meeting point of EU and Russia, Lappeenranta is your home base for establishing, expanding or internationalizing your business into EU with the support of Finland’s best integrated business services. We can help you to innovate and find opportunities, skilled professionals and the right networks. The most Russian City of Finland right next to St. Petersburg offers you a great opportunity to explore your EU market entry almost straight from home. Lappeenranta is a cost-effective option opening your company in EU and we ensure smooth transactions with the officials.
Lappeenranta enables success Lappeenranta has natural prerequisites for successful business activities and just recently became fourth in the city with the best image comparison in Finland. In addition, the city supports the companies moving to the city or those already operating there in many ways. The One Stop Shop service model of Lappeenranta Business & Innovations ensures that busy entrepreneurs get all the necessary services in one place. The sophisticated establishment services make it easy to come to Lappeenranta. The possibilities for research and development are easily accessible in a university city. The innovative operating environment and excellent networks make the launch and development of international business operations easier. Lappeenranta ensures that Russian companies always have at their disposal the hub of experts, extensive databanks and innovative business support services for operations between Lappeenranta and St. Petersburg. The location of Lappeenranta is excellent for establishing business in Europe from Russia. The city also assists companies in acquiring business premises. If suitable business premises are not found, the premises services offered by the city can assist in finding the premises
Lappeenranta Business Development Ltd Kauppakatu 40D | 53100 Lappeenranta | Finland
Tel. +358 (0)5 616 3400 Fax +358 (0)5 616 3410
Y-tunnus: 1565217-5 www.lsyp.fi
7/7 quickly and inexpensively. The plot guarantee granted by the city ensures that everyone can have their premises built to order. The new premises and industrial areas are located in the immediate vicinity of the best traffic connections. The favorable cooperation between the city and businesses has helped both smaller and larger companies to prosper in Lappeenranta. Lappeenranta inspires innovative people and businesses.
Supporting entrepreneurship The excellent services provided by Lappeenranta Business & Innovations Services:
General Business Consulting Services Start Your Own Business Service Financial Consulting Enterprise Growth Support Service Invest in Lappeenranta Services Internationalization Services Innovations Commercialiazation Service Business Facilities
You can find more information of our services and our business specialists in http://www.lsyp.fi.
Lappeenranta Business Development Ltd Kauppakatu 40D | 53100 Lappeenranta | Finland
Tel. +358 (0)5 616 3400 Fax +358 (0)5 616 3410
Y-tunnus: 1565217-5 www.lsyp.fi