Business registration in Finland

[lkpro91]

Hi everyone,

I am an Asian student in Helsinki and now my friends and I want to start our own business here. We are all non-Finnish speaking IT guys and are currently having troubles in registering a new company. To be honest, we are not really familiar with the Finnish laws and rules, hence we don't know exactly what to do at the beginning.

The type of business we want to register is limited company and as I read, we need to fill in the form Y1 + appendix 1, the Memorandum of Association and the Articles of Association. However, it seems other procedures like openning bank account or tax are way too complicated for us. So we would highly appreciate it if our fellows here can give us some advice. All comments are totally welcome.

Cheers,

[onkko]

Walk in TE-keskus and ask, they atleast should be there for help but... Record everything they say. Thats general quide, record everything.
It wont save you from bankrupt if things go wrong but atleast it may save yourself from criminal prosecution.

Now when i have been overly negative and looked at "worst case scenario".

There are TE-centre courses what aim to help/make new business and helping new ones to on all of bureaucracy and they are by definition there for help you. So even if there isnt courses they should be able to point you in right direction.
Of course.... If you are student then no course to you.... but they should be able to atleast point to right direction. I really hope thats wrong in foreign student areas but i doubt that.
If you are student, what i assume, have you asked your school, they may have someone with knowledge?

[cors187]

Hi everyone,

I am an Asian student in Helsinki and now my friends and I want to start our own business here. We are all non-Finnish speaking IT guys and are currently having troubles in registering a new company. To be honest, we are not really familiar with the Finnish laws and rules, hence we don't know exactly what to do at the beginning.

The type of business we want to register is limited company and as I read, we need to fill in the form Y1 + appendix 1, the Memorandum of Association and the Articles of Association. However, it seems other procedures like openning bank account or tax are way too complicated for us. So we would highly appreciate it if our fellows here can give us some advice. All comments are totally welcome.

Cheers,

The setup-
prh.fi >Actually when you apply to register your company you get a tick box scenario that can pre-register you for prepayment company tax, VAT, Employer register.
Its in finnish or swedish online but its easy if you know finnish.Pay a fellow fin student , its only 40 minutes work.
Bank account- This is the easiest part ,atleast with a Finnish ID its the easiest part. Take the prh.fi applications finalized printout(afterpayment) and go to a bank with 2500euro. 30 minutes .
The system of starting business here is not hard , its like a calculator, 1+1=2.
Filling your pockets with money while doing everything correctly, that requires Management and admins.No other way.
Poor management and backend office admins will turn you upside down.
Startup really needs 7K minimum.

[Rosamunda]

Where are you studying? Nearly all the UAS and Unis have start-up offices and business incubators these days and certainly all the IT courses run modules in entrepreneurship. I would start by going to them because they have staff who can hold your hands through the bureaucracy. They are also really eager to help students start up businesses. For example I know that Haaga-Helia and Metropolia both have start-up schools and different programmes for helping students to launch their own companies.

You could also join a group like Lean Start Up Helsinki either through your university or independently.http://www.meetup.com/Lean-Startup-Helsinki/
They organise a business start-up competition each year and are really keen to recruit groups of students with good ideas (especially in the IT field). If you are not familiar with Lean Start-Up methodology then I really recommend you take some time to do some research into it. This is a good place to start: http://theleanstartup.com/ and http://en.wikipedia.org/wiki/Lean_startup

There is also a useful manual you can read for the basics about registration and becoming an entrepreneur in Finland
http://www.expat-finland.com/pdf/becomi ... inland.pdf

http://www.yrityssuomi.fi/en/
http://www.expat-finland.com/entreprene ... shing.html

Contrary to what others have suggested I think it is pretty easy to start up a company in Finland. If none of you is familiar with bookkeeping then you should probably find a bookkeeper who can help you with VAT returns, submitting financial reports etc.

[lkpro91]

Thank you big time guys. It's really good to have some valuable advice here. I tried to ask some people I know and the common answers are "that's easy, only 3 days" or "the procedures are painful, lasting for 1 to 2 months at least." Those are not helpful at all and that's why I am here
I guess I will start with my school first and hopefully my professors will help me out. I am fully aware that the failure rate for startups is around 90% or even higher but we'll never know if we don't give it a try.

[cors187]

Start at http://www.prh.fi/en/index.html
You can do everything with help from a worker.

Arkadiankatu 6 A
P.O.Box 1140
FI-00101 Helsinki, Finland

Opening hours
Client Service and Library Mon–Fri 9.00–16.15
Tel: +358 29 509 5030

Theres only 2 problems you need to address- Residence status of board members.
Paying for the application.

[lkpro91]

[/quote]
Theres only 2 problems you need to address- Residence status of board members.
Paying for the application.[/quote]

Thanks a lot cors187 However, I am wondering that Is it obligatory for us to change our residence status from Students to something else (i.e. "B" to "A" type). Actually we plan to both study and work at the same time (sounds crazy, doesnt it ) as we almost finish our study here. I do look forwards to your early reply

[Rosamunda]

And, btw, being a shareholder in a Finnish company will not automatically secure you a RP when your student visa runs out...

[cors187]

Thanks a lot cors187 However, I am wondering that Is it obligatory for us to change our residence status from Students to something else (i.e. "B" to "A" type). Actually we plan to both study and work at the same time (sounds crazy, doesnt it ) as we almost finish our study here. I do look forwards to your early reply

Actually , i was referring to startup regulations about the "residential status" ie "maistratti".

Heres a insert from a entreprenuer pamplet.

Limited company (oy)
A limited company may be established by one or more people or organisations. When the company is being set up, the founders register all the company’s shares. In a private limited company, the share capital must be at least EUR 2,500. The Finnish Companies Act does not specify anything about the residence or domicile of the shareholders, i.e. the founding shareholders of a limited company may also be from outside the EEA area.
The shareholders are liable for the company’s commitments only to the extent of the capital that they have invested in the company, unless they have guaranteed loans on behalf of the company.
Issues relating to a limited company are decided on by the shareholders. A person who has more shares also gets more decision-making power (and more voting power). A limited company must have a board of directors that the shareholders appoint. The board takes care of management of the company, and it represents the company. The board may elect a managing director for the company, who takes care of its day-to-day management. However, the appointment of a managing director is optional. The managing director can also be elected in the initial agreement created on foundation of the company or at a meeting of the board held at a later date.
If the board of a limited company comprises less than three members, at least one deputy member must also be appointed. At least one of the board members and one of the deputy members (calculated separately) must have permanent residence in the EEA area. If they don’t, a licence must be sought from the National Board of Patents and Registration of Finland for all ordinary members or deputy members who are from outside the EEA area.

Its confusing because the English translations use "residence" for both sutuations , yet they are completely seperate.

Maistratti address- If you and your fellow board member have a permanent address registered in maistratti , then its acceptable.

In regards to "Residence Permits" , working on the board of an Oy is still considered an Employment residence permit. It seems confusing to be doing both because in Finland they have alll these details about how you will do stuff. And to be noted your situations is a prime example of a legislative conflict(as per the system)

Working hrs act
Student working hrs rules
Employed in your own company
Student status

I cant predict which status would be better but i think student status is the worst.

Personally , what i know is, life is easy as a board member of an Oy in Finland.But you need to be turning over money(just wait for your companies economy to present itself). Im pretty sure you would have under estimated running costs!
You need to keep turning over money because costs keep coming.

On one hand starting an Oy can trap you in a situation that can just drain your money and to get out you need to throw in a little extra.
On the other hand if your business plan is solid and your SWOT analysis works.

Strengths: characteristics of the business or project that give it an advantage over others.
Weaknesses: characteristics that place the business or project at a disadvantage relative to others
Opportunities: elements that the project could exploit to its advantage
Threats: elements in the environment that could cause trouble for the business or project

Speaking of SWOT, i really think to have a genuine SWOT analysis you need to know everything about the business , but if you really know everything about the business you only need a SWOT to show investors that your in the zone.
What a load of cr.ap

Expect that you can manage your company , but you will be visiting the customer offices and getting help from staff(it can work, i know ive done it).
If your busy or you get busy, trying to navigate the online details(because you can manage your company online-very efficient) is a hassle if your not high level Finnish!.

Actually i recommend to always go to the source.( i asked questions, i visited people and places, in the end i should have gone to the source!)
Theres someone waiting there ffor you to do all the paperwork.

startup- go to prh.fi, you also get options to register for vero etc.
Bank- nordea is good at what they do!
insurances and all other pensions (everything you need to supplement your status and line of business)- go to some place like http://www.lahitapiola.fi/henkilo
Vero-Katso ID can be done online , but its easy in vero too!

Now your started and soon to get mail every day with a new bill to pay

[cors187]

However, I am wondering that Is it obligatory for us to change our residence status from Students to something else (i.e. "B" to "A" type). Actually we plan to both study and work at the same time

You can be on the board of an Oy as a student. When your student re-permit runs out you need to find a legitimate reason to continue here.
Non salary board member for an employment res-permit dont work.

Looks like you have only a small window of opportunity to startup an Oy here and operate it in the field.

[betelgeuse]

Then remember you are limited to 25 hours of work per week.

For owners of a company salary is not the only option for getting money out of a company. Usually at the start there's very little to distribute any way. I am not sure if the limit even applies to entrepreneur students but there will be no paper trail that would show it any way (entrepreneurs don't have to track hours they spend).

[GermanInHelsinki]

Starting up a business in the final phases of university studies of course carry the risk that both will fail, unless you manage to make part of the startup work your thesis.

Your company of course only makes sense if you have customers waiting to nuy from your startup. In a startup phase where the company cannot pay regular salaries you will of course have the problem that you will not get a new Residence Permit when your studies have finished.