Start Your Own Business in Finland
Self-employment is the starting point. When you are ready to protect your personal assets, bring on partners, or unlock tax advantages, it may be time to form a company in Finland.
HustleHub AI provides general information only, not tax, legal, or financial advice. Finnish rules may vary. Always check Verohallinto or PRH, or speak to a qualified tilitoimisto or asianajaja.
From side hustle to business owner
Many successful businesses start as side hustles. The typical progression in Finland:
Side hustle
Earning extra income alongside your main job. Casual, flexible, low commitment.
Toiminimi
Registered sole trader via PRH. Y-tunnus. Ennakkoverot. You and the business are one legal entity.
Osakeyhtiö (Oy)
Private limited company. Separate legal entity. Limited liability. Yhteisövero 20%.
Not everyone needs to progress to step 3. Many self-employed people stay that way permanently and do very well.
Business structures compared
| Feature | Toiminimi | Osakeyhtiö (Oy) |
|---|---|---|
| Setup | ~EUR 60 at PRH | PRH + EUR 240-380 + EUR 2,500 share capital |
| Legal status | You and business are one | Separate legal entity |
| Liability | Unlimited personal liability | Limited to share capital |
| Tax | Personal income tax progressive (up to ~50%) | Yhteisövero 20% + personal tax on salary/dividends |
| Admin | Veroilmoitus + kirjanpito | Tilinpäätös + veroilmoitus + kirjanpito + tilintarkastaja |
| Costs | ~EUR 60 registration | EUR 240-380 + share capital + accountant recommended |
| Best for | Low-risk, modest income, testing ideas | Higher income, liability protection, growth plans |
This is a simplified comparison. The right structure depends on your income, risk, and growth plans. Always consult a qualified professional.
When to stay solo vs form a company
Stay self-employed when...
- Low-risk business with modest income
- You are testing an idea or starting a side hustle
- You want minimal paperwork and affordable setup (~EUR 60)
- You benefit from the YEL new entrepreneur discount (22% off for 48 months)
Consider an Osakeyhtiö (Oy) when...
- You want personal liability protection
- Your income is high enough that yhteisövero 20% is more favorable than progressive personal rates
- You plan to take on partners or investors
- Clients or public contracts require a company structure
How to form a company in Finland
- Choose a company name (check availability at PRH)
- Prepare yhtiöjärjestys (articles of association)
- Deposit EUR 2,500 minimum share capital (or no minimum since 2019)
- Register the Oy at PRH via YTJ.fi (costs EUR 240-380)
- Appoint at least one hallituksen jäsen (board member) and optionally a toimitusjohtaja (CEO)
- Register for yhteisövero (corporate tax) at Verohallinto
- Open a business bank account in the company name
- Set up payroll (palkanmaksu) if paying a salary
- Register for employer TyEL pension insurance
- Appoint a tilintarkastaja (auditor) unless qualifying for exemption
Finland effectively removed the Oy minimum share capital in July 2019 (EUR 2,500 remains standard). The yhteisövero (corporate tax) rate of 20% is competitive. New entrepreneurs get a 22% YEL discount for 48 months. Finland uses the euro, simplifying cross-border trade.
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HustleHub AI provides general information only, not tax, legal, or financial advice. Finnish rules may vary. Always check Verohallinto or PRH, or speak to a qualified tilitoimisto or asianajaja.