OY Risks and Recommandations Needed

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Jeanpierre
Posts: 4
Joined: Thu Jul 16, 2020 1:40 am

OY Risks and Recommandations Needed

Post by Jeanpierre » Tue Aug 18, 2020 5:57 pm

Hi everyone,

I'm about to open an OY company since I'm receiving my first commission that is high a little for a freelancer doing product stock trading and getting paid through ukko.

While searching I found the following information about Oy type of company that I know so far:

Firstly a Bank account for the company needs to be open with a minimum fund of 2500€

After that 300€ to create the company

If I understand properly, a fund of minimum 2500€ needs to be present in the company's bank account every year

If you think I need to know anything else about this type of company and the possible risks please let me know.



OY Risks and Recommandations Needed

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ajdias
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Joined: Sun May 04, 2003 9:01 pm
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Re: OY Risks and Recommandations Needed

Post by ajdias » Tue Aug 18, 2020 7:18 pm

I do not know of your needs but if you are only looking for an alternative to Ukko, the toiminini (sole trader) should probably be your first option. Much lighter on accounting needs and responsibilities, you can even take care of it with an excel/accounting software if you are inclined and able. You can invoice, collect, pay and deduct VAT (if you are vat liable) just like a regular business. Accounting services are usually cheaper, also.
Read more here: https://www.ytj.fi/en/index/notificatio ... rader.html

betelgeuse
Posts: 3581
Joined: Thu Aug 29, 2013 1:24 am

Re: OY Risks and Recommandations Needed

Post by betelgeuse » Tue Aug 18, 2020 7:32 pm

Jeanpierre wrote:
Tue Aug 18, 2020 5:57 pm
Hi everyone,

I'm about to open an OY company since I'm receiving my first commission that is high a little for a freelancer doing product stock trading and getting paid through ukko.

While searching I found the following information about Oy type of company that I know so far:

Firstly a Bank account for the company needs to be open with a minimum fund of 2500€

After that 300€ to create the company

If I understand properly, a fund of minimum 2500€ needs to be present in the company's bank account every year

If you think I need to know anything else about this type of company and the possible risks please let me know.
There’s no longer a minimum required share capital. Even if there was, your description of what share capital means wasn’t correct.

Jeanpierre
Posts: 4
Joined: Thu Jul 16, 2020 1:40 am

Re: OY Risks and Recommandations Needed

Post by Jeanpierre » Tue Aug 18, 2020 10:03 pm

ajdias wrote:
Tue Aug 18, 2020 7:18 pm
I do not know of your needs but if you are only looking for an alternative to Ukko, the toiminini (sole trader) should probably be your first option. Much lighter on accounting needs and responsibilities, you can even take care of it with an excel/accounting software if you are inclined and able. You can invoice, collect, pay and deduct VAT (if you are vat liable) just like a regular business. Accounting services are usually cheaper, also.
Read more here: https://www.ytj.fi/en/index/notificatio ... rader.html
Is it possible to open a bank account dedicated only for the sole trader?

Jeanpierre
Posts: 4
Joined: Thu Jul 16, 2020 1:40 am

Re: OY Risks and Recommandations Needed

Post by Jeanpierre » Tue Aug 18, 2020 10:04 pm

betelgeuse wrote:
Tue Aug 18, 2020 7:32 pm
Jeanpierre wrote:
Tue Aug 18, 2020 5:57 pm
Hi everyone,

I'm about to open an OY company since I'm receiving my first commission that is high a little for a freelancer doing product stock trading and getting paid through ukko.

While searching I found the following information about Oy type of company that I know so far:

Firstly a Bank account for the company needs to be open with a minimum fund of 2500€

After that 300€ to create the company

If I understand properly, a fund of minimum 2500€ needs to be present in the company's bank account every year

If you think I need to know anything else about this type of company and the possible risks please let me know.
There’s no longer a minimum required share capital. Even if there was, your description of what share capital means wasn’t correct.
Can you please explain what is wrong with my description please ?

betelgeuse
Posts: 3581
Joined: Thu Aug 29, 2013 1:24 am

Re: OY Risks and Recommandations Needed

Post by betelgeuse » Wed Aug 19, 2020 9:23 pm

Jeanpierre wrote:
Tue Aug 18, 2020 10:03 pm
Is it possible to open a bank account dedicated only for the sole trader?
Yes.
Jeanpierre wrote:
Tue Aug 18, 2020 10:04 pm
Can you please explain what is wrong with my description please ?
The relevant number is shareholders' equity in the balance sheet – not the balance of the bank account.

dan_72
Posts: 3
Joined: Tue Dec 17, 2019 3:52 pm

Re: OY Risks and Recommandations Needed

Post by dan_72 » Sun Aug 30, 2020 4:23 pm

Hi!

I give you my experience, as I'm reaching 4 years of single owner of my OY:

- I would open an Oy and not toiminimi if you expect your incomes to be above what you would pay yourself: it requires more effort in the book keeping, but you also have the flexibility of retaining capital in the company and actually growth the company to the point when you can pay yourself with dividends rather than salary only and save money in taxes. Oy is for long term and growth.

- Accounting: I have learnt the practices for OmaVero and handle all by myself, thus saving a lot of money, but for the annual return if you ramp up an Oy you need someone with expertise to help, especially on year-1 because creating income statement, balance sheet and cash flow report is not exactly a piece of cake, in my opinion, especially if you target to be into the stock market

- Opening the Oy should be fairly straightforward and do it online so that you get things much quicker: I did the paper work and took several weeks before everything was settled

All the best and welcome to the entrepreneur world!

Daniele


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