Finland is situated in Northern Europe and forms the eastern part of Scandinavia. The country shares frontiers with Sweden to the west, with Norway to the north, and with Russia to the east. To the south Finland's neighbour is Estonia. Finland covers an area of more than 338,000 square kilometres.
» Population
The population of Finland is five million.
» Political Structure
Finland is a parliamentary democracy with a republican constitution. The legislative power of the country is exercised by parliament and the president of the republic. The highest executive power is vested in the president, who currently is Mrs. Tarja Halonen. Parliament comprises 200 members and is elected by universal suffrage for a period of four years.
Finland has a stable political climate.
» Infrastructure and Economy
Finland is modern European country with a high standard of living. Finland has a free-market economy and is a member of the EU and EMU. Finland exports wood and paper products. Finland is well known for its hi-tech, especially telecommunications, industry, which dominates Finnish exports.
» Language
The official and spoken languages are Finnish and Swedish. However most people also speak some English.
» Currency
Euro
» Exchange Control
No exchange controls are imposed in Finland although formal reporting requirements are required by the Central Bank, these are mainly for statistical purposes.
» Type of Law
Civil Law.
» Principal Corporate Legislation
The Oy/Ab and Oyj/Abp are both governed by the Finnish Private Companies Act (Osakeyhtiölaki).
Company Information
» Type of Company
Private or Public Limited Company.
New Companies Act (624/2006)
» Procedure to Incorporate
The promoter of the company will draw up and sign the Memorandum and Articles of Association. This together with evidence of the minimum share capital payment is then submitted to the Companies Registry for registration. A statutory general meeting of shareholder must also be held for the purposes of adopting the Articles of Association, electing the board of directors or director and the auditors.
» Restrictions on
Trading
Yes, specified groups, which include for example, banking, insurance and financial services.
» Powers of Company
A Company incorporated in Finland has the same powers as a natural person.
» Language of Legislation and Corporate Documents
Finnish or Swedish.
» Shelf Companies Available
Yes.
» Time to Incorporate
Three to four weeks.
» Name Restrictions
A name that is similar to or identical to an existing company. A well-known name that is known to exist elsewhere.
» Language of Name
The name of the company can be expressed in any language using the Latin alphabet. The Registrar may request a Finnish or Swedish translation to ensure that the proposed name does not contravene name restrictions.
» Names Requiring Consent or a Licence
Bank, building society, savings, loans, insurance, assurance, reinsurance, fund management, investment fund, trust, trustees, Chamber of Commerce, co-operation, council, municipal or their foreign language equivalents or any name in English or a foreign language that may suggest association with the banking or Insurance industries.
» Registered Office Required
Yes, must be maintained in Finland.
» Suffixes to Denote Limited Liability
Osakeyhtiö (Oy) in Finnish language or Aktiebolag (Ab) in Swedish language for private limited company and Julkinen osakeyhtiö (Oyj) in Finnish language or Publikt aktiebolag (Abp) for public limited company or the relevant abbreviations.
» Disclosure of Beneficial Ownership to Authorities
No.
Compliance
» Authorised and Issued Share Capital
Private Company - The minimum share capital is EURO 2,500 and must be issued and fully paid.
Public Company - The minimum authorised share capital for a public company is EURO 80,000 and must be paid up.
» Classes of Shares Permitted
Ordinary shares, preference shares, deferred shares, redeemable shares and shares with full or with limited voting rights.
» Taxation
Tax is paid by companies in Finland based upon annual accounts, which are submitted to the Finnish tax authorities at the end of the company's financial year. A company is free to choose its own year-end. The current tax rate is 28%.
» Double Taxation Agreements
Finland is party to more than 60 double tax treaties
» Licence Fees
None.
» Financial Statement Requirements
All Finnish companies are required to file accounts. All Finnish companies require an audit by an independent auditor, in public companies by The Central Chamber of Commerce Authorised Public Auditor or Auditing Company.
» Directors
Private Companies - One member of the board and one alternate member. They must be natural persons. A member may be of any nationality and need not reside in Finland, however at least half of the members of the board must reside within European Economic Area.
Public Companies - There is a two-tier management structure required for public companies and large private companies. This consists of a minimum of three board members who must appoint a CEO.
» Company Secretary
N/A
» Shareholders
The minimum number of shareholders is one. A company must maintain a public record of its shareholders
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