Starting an on-line store

[lovelyjet]

Hi, I am planning to start an online business at home, importing goods and resell in local market. I don't employ any people other than myself. As far as I read on prh.fi:

Question: Can a foreigner function as a private trader?
Answer: Nationality is not a decisive factor, but the trader’s place of residence must be located within the EEA. Otherwise he/she has to apply for a permit from the NBPR.

A natural person resident in the European Economic Area can operate as a private trader in business in Finland. As a private trader, you must report for registration at the Trade Register if
- you operate in a licensed trade,
- you operate in permanent premises, such as a room separate from your home, or
- you employ people other than your immediate family members (your spouse, or your child/grandchild who is a minor or under guardianship).

So is online retail considered as licensed trade? Or more precisely, do I have to file a Notification of start-up?

Also, what kinds of permit do I have to obtain before starting an online retailing store? On yrityssuomi.fi it says that online retail businesses subject to the same regulation as mail order business, but I couldn't find information about mail order business there.

Any input would be appreciated.

[Adrian42]

The Start-up guide at http://www.yrityshelsinki.fi/en/tools-a ... t-up-guide is a must-read for anyone wanting to start a business in Finland.

Pages 24-25 list the licenced industries.

[lovelyjet]

Thanks for the link, it is very helpful. According to the start-up guide, retailing is not listed as licensed industry. So, by PRH's criteria:

- I do not operate in a licensed trade
- I do not operate in permanent premises separated from my home
- I do not employ any other people

thus, I am not obliged to register my business to PRH until I hire more employees or operate in a dedicated premise... right?

[lindach]

Hi, if you import product from somewhere other than EU, then you shall consider calculating the VAT (value added tax) and fill the tax repot every month, if your annual earning is more than a certain amount (maybe 75,000€ or more, you better check with the tax office where you staying). If it's not reaching to that amount, then you submit the tax report once a year. Secondly there could also be income tax involved, which is around or less than 20€ from your earning. Further more, if there is VAT involved I think you probably shall register a company in tax office, then it's okay for you to carry on the business already, even though if you wouldn't like to register it in Maaistraatti or any trade register system. The tax registration in tax office is free, to get it done quicker I would advice to go directly to the tax office, then they will provide you a yritys tunnus which is kind of company id for you. Then you could start up the company and business already. Good luck!f:)

[lovelyjet]

Thanks for the advice lindach. I have decided to register my business anyway to apply for start-up grant which will help a lot. I will have a meeting with an advisor at yrityshelsinki soon so I heard he would help me with registration procedures.

[lindach]

You are welcome. I would advice you to prepare the questions you would like to ask the consultant beforehand, like writing them on a paper, or make a print version for the document, because usually it's just one hour per one client. And wish you good luck with your business.