Doing business in Finland

Business presence

Main vehicles for doing business in Finland:

Finnish company, the most used are:

 

 

 

 

 

 

 

Commercial agreements, such us:

Setting up a company

Setting up a company may take between 4to 14 days. The usual steps for a “Oy” are:

Exchange Control

There is total freedom of capital movements. Capital, dividends, profits and any kind of incomes can be repatriated by foreign investors without restrictions.

Money Laundering

In Finland, the responsibility for the development of anti-money laundering legislation lies with the Ministry of the Interior. The Financial Intelligence Unit operating in connection with the National Bureau of Investigation deals with reports submitted to it on suspicious transactions. The Financial Supervisory Authority is responsible for ensuring that the procedures, risk management and internal control of supervised entities meet statutory requirements.

Labour law framework

Regulation: Labour relations are governed by the Employment Contracts Actand collective agreements between the employer or registered association of employers and the employees’ representatives.

Types of contracts

 

Social Security
The employer is obliged to pay the employee’s social security contribution. The employer is also under obligation to arrange a pension for employees. The employer and the employee both pay their share of the pension contribution – employees share being 5,7 % for employees who are under 53 years and 7,2 % for employees who have turned 53 years.

The employer is also obliged to take care of a group life insurance, unemployment insurance contribution and insurance against the risk of accidents and occupational diseases for employees.

Dismissals
An indefinitely valid employment contract can only be terminated with a proper and serious reason. Proper and serious reasons can be either related to employee’s person or to financial and production-related grounds. Fixed-term employment contracts are automatically terminated at the end of the fixed period.

The cancellation of an employment contract with an immediate effect is possible only upon an extremely several cause. Such causes may be deemed to exist in case the employer or the employee commits a several breach against the employment contract or the law.

Minimum gross salary.
There is no general minimum salary in Finland. The collective agreements determine the minimum salary for most employment branches. If a collctive agreement is not applicable to an employment relationship, or the employer and the employee have not agreed on the salary, the employee shall be paid a reasonable and normal remuneration.

Taxation

Corporate income tax:

Finnish companies and foreing companies with tax residency in Finland are levied with a corporate tax rate of 20 %

Standard VAT rate: 24 %.

Recognition and enforcement of foreign court decisions

 

Intellectual property rights

 

Publisher: Asianajotoimisto Tempo Oy


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