Starting a business in Finland

[zadok]

hey.
i'm looking for workers that can work with computers (marketing area), from home or any place else.
it's a part time job, with a salary higher than anything you can imagine.
for more details - rudizadok@gmail.com

[cfb]

Hi

I have a question about importing goods from the EU and selling to the UK. Is it possible to be the middle man in Finland, whilst having the goods drop shipped directly from the other EU directly to the UK? So that is the Finnish co, buying the goods from other EU, and selling to UK, without the goods ever entering Finland? And what would the tax implications be?

Thanks in advance.

[Rosamunda]

Hi

I have a question about importing goods from the EU and selling to the UK. Is it possible to be the middle man in Finland, whilst having the goods drop shipped directly from the other EU directly to the UK? So that is the Finnish co, buying the goods from other EU, and selling to UK, without the goods ever entering Finland? And what would the tax implications be?

Thanks in advance.

Well, that's pretty much how amazon.co.uk does business. When I order a book from the "UK" it might be delivered to me from their warehouse in Germany. I recently bought a digibox from France and that came from Germany. You cannot import FROM the EU into the UK. That doesn't make sense because the UK is in the EU.

What do you mean by tax implications? It gets complicated... For example, amazon UK (again) has to charge VAT to its customers in Finland because its total sales in Finland are above a certain threshold (UK VAT on books is 0% but in Finland it is 9%). On the other hand, if I order books from the Book Depository (also in the UK) I don't have to pay VAT because their total sales to Finland are below the threshold. And the same rule would apply to whoever you are sourcing your products from.

So, do you have a limited company in Finland? Why would you choose Finland if you have no added-value here? Why not set up in a company in the country where you are buying the products from, or alternatively, in the UK?

[cfb]

Hi

I have a question about importing goods from the EU and selling to the UK. Is it possible to be the middle man in Finland, whilst having the goods drop shipped directly from the other EU directly to the UK? So that is the Finnish co, buying the goods from other EU, and selling to UK, without the goods ever entering Finland? And what would the tax implications be?

Thanks in advance.

Well, that's pretty much how amazon.co.uk does business. When I order a book from the "UK" it might be delivered to me from their warehouse in Germany. I recently bought a digibox from France and that came from Germany. You cannot import FROM the EU into the UK. That doesn't make sense because the UK is in the EU.

What do you mean by tax implications? It gets complicated... For example, amazon UK (again) has to charge VAT to its customers in Finland because its total sales in Finland are above a certain threshold (UK VAT on books is 0% but in Finland it is 9%). On the other hand, if I order books from the Book Depository (also in the UK) I don't have to pay VAT because their total sales to Finland are below the threshold. And the same rule would apply to whoever you are sourcing your products from.

So, do you have a limited company in Finland? Why would you choose Finland if you have no added-value here? Why not set up in a company in the country where you are buying the products from, or alternatively, in the UK?

Hi Penelope

I didn't choose Finland, it chose me...

The added value here comes from my expertise in the product marketplace. As I know the market inside out, and am resident in Finland, that is where the added value is. SWIM have already set up a ltd co. in the UK, and I would be selling to them. They know nothing about the product or marketplace, and I suppose if they wanted my help, I theoretically could help them out from here, if they really wanted or needed it. Potentially.

Ceteris paribus.

[Rosamunda]

Fine but just because you are resident here doesn't mean your company has to be here. You can still register a Ltd company in the UK, as long as you are resident in an EU country.

I don't know the cross-border drop-shipment rules too well but my general understanding is that intra-community sales of goods are VAT exempt. This may sound like good news (it makes the bookkeeping easier) but it also means that when you buy an asset for your business (eg a computer) you will not be able to deduct the VAT. You can only get VAT relief on business expenses when you have actually paid some VAT into your "account".

Regarding company tax and income tax, normal Finnish rules apply.

[security expert]

Hi averyone.Need help.I got a security system(alarm systems,video surviliance,anti theft antennas for supermarkets,access control client counters and so on) buisness in estonia,but i am very interested in starting buisness in Finland.Any advice would help.Thank you

[AndyMan]

Hi All,

I am planning to register a new OY. Could you help me with information on how long the process takes, after we file the documents? Any experiences, please? Any tips on making it faster, please?

[Rosamunda]

As soon as you have submitted your Y1 and proof of share capital (minimum 2500e) in a company bank account and paid your handling fee, then you can start trading. The share capital cannot be used until a Board of Directors has been elected.

All the info is in the book by Tuulikki Holopainen (mentioned somewhere in this thread) or on the www.prh.fi website or on Entreprise Finland's website etc

So, the whole process can be done in a few days (as long as you are a resident of the EU). I think the whole process can be done online.

[cors187]

i have formally begun to look for a solution to building a business here.
At present i am still on the first year Temp Resident permit and i have been allowed this RP because i work for a OY company registered in finland.
Not withstanding that my work contract is still current and i can sign again for a second year if i choose, i would rather choose to setup a business so i can legally obtain the work and have more control over my environment.
The questions i need answers for are not what type of business or what should i do about registering a business , because all the business PDF's listed in this thread make it easy to start a business.
My questions are directly related to my current status , my eligibility to setup a LTD or partnership as a first year Resident and various other legislation that i am un aware of .
I can still sub contract for the company i work for now , but also be able to use my initiatives with my new company .
As i don't understand Finnish and many many times translations are neither here nor there in terms of exactness , i think i need to put this idea into someones hands who can put together a package portfolio of my choices and necessary details needed for success.
Any ideas and thoughts on who or where i should look for this package?

The reason this post came about is that i spent the last 7 months working and never bothered to update my permanent resident address and today it became evident when the police said that i needed to have a permanent resident added to my population extract from maistraatti to be issued with a Finnish ID.
These small details i take for granted in my own country so i am sure there may be a few i over look in terms of self employment here.

[cors187]

I guess i answer my own question.
http://www.yrityssuomi.fi/web/enterprise-finland
http://www.mol.fi/mol/en/offices.jsp

[gheordan]

Hello
would you, please, advice me how I could start online selling business?

Thanks!

[donnan1]

Hi everyone, I started a company which specialises in personal training services and coaches sport to young people. I'm looking to find the cheapest insurance and liabilities. I would really appreciate you advice and rough estimation of monthly or annual costs.

Thanks again!

[Rosamunda]

Just call the insurance companies and ask for a quote: If, Ilmarinen, Tapiola, Pohjola etc

[hackoff]

FileCore, Rosamonda (Penelope) You deserve a BIG THANK YOU for all the valuable link. I have went through all the 15 pages. Thanks for answering all those questions!

[hackoff]

I have moved my comment to a new thread, Thinking it might be useful / easy to find

My case scenario.

I am heading next week to open up my Toiminimi as proposed by my client. fill the Y3 form + 75euros + YEL insurance (+ maybe open a separate company bank account) and I am all set.

I will start billing my client for a couple of months contract (Dec 2012, and Jan 2013) with the possibility of extension.

- Dec 2012 my income will be less than 8500 euros --> No VAT (in Y3 i will mark Jan 2013 as the start of VAT liability, correct knowing that i might have a longer contract with my/other client?)
- Lets say I charge bill my customer till the end of 2012, 7000 euros.

Business income to be distributed = 7000 - for exp 500 of expenses = 6500 euros

Capital income = 20% or 10 of Net assets --> First year nothing here so 0 right? and No tax on the capital income

Earned income = Business income - capital income = 6500 euros

My take home= progressive task (Seperate verokortti?) of Earned income


- Is the above correct? I know i need to attend the free session. But those will happen after I have started my toiminimi and I would Like to figure out the odds.

- What about the net assets? from one document i see that it is: net assets = assets of the business – liabilities of the business. so basically Net asset is the business income of the first accounting period. Meaning that in Jan 2013 my net assets will be 6500 euros as I am the only founder of the company.

- In the following document http://www.masuuni.info/images/masuuni_ ... 110524.pdf it says

Alternatively, the entrepreneur can decide that capital income will only be 10 % of net assets or that all of the business’s income is earned income.

What is the "correct" number to chose regarding the business income: 10%,20% or 100% of earned income?

- If the business income (Income from clients) goes up to lets say 95k a year is an OY advisable in this case?

- Can I open the toiminimi online. I think i saw a website that propose such but could not find it anymore

Thanks a lot