Tmi vs Oy - please advice!

[vp]

Hello,

I want to establish my own firm in Finland, and I am not quite sure what type of entity to choose (at least for the beginning) - Tmi ot Oy.

Does OY give any advantages (having in mind it is more expensive, just minimum share capital is 8000 eur , etc) relating to Tmi?

The business which I hope to run, is IT consulting, for the clients both in Finland and in other EU countries, number of employees - 1 (myself)

I have read "Doing Business in Finland", which was mentioned earlier in ., but still not clear...

Thanks!!

[gavin]

Hello,

I want to establish my own firm in Finland, and I am not quite sure what type of entity to choose (at least for the beginning) - Tmi ot Oy.

Does OY give any advantages (having in mind it is more expensive, just minimum share capital is 8000 eur , etc) relating to Tmi?

The business which I hope to run, is IT consulting, for the clients both in Finland and in other EU countries, number of employees - 1 (myself)

I have read "Doing Business in Finland", which was mentioned earlier in ., but still not clear...

Thanks!!

Hi

I am also a one man consultant working from Finland.
http://www.gavincruickshank.fi

I have found that T:mi is a much more simple business to run, not to mention cheaper in terms of accounting costs etc.

I work with companies in Finland, and overseas, and it's a system that has worked very well for me.

The main advantage of having an Oy is that if things go pear shaped, then only the business is liable for the company debts. With a T:mi, if things go wrong, they can take also your personal belongings to cover outstanding debts.

If you have specific questions about setting up your Toiminimi, e-mail me, and I'll try and help you out.

Cheers
Gavin

[Hank W.]

There is also an image advantage in a 'Ky' that is somewhat between a T:mi and OY. The thing is for the prospective client, and OY is "big company = too expensive" the image of a one-man Oy is traditionally a scam-artist-gonna-run-off-with-our-monies, and a T:mi is "too small=can't provide 24/7 service" a one-man-corner-of-bedroom-operation so Ky is a bit like, "ok, we're small but talented".

[gavin]

There is also an image advantage in a 'Ky' that is somewhat between a T:mi and OY. The thing is for the prospective client, and OY is "big company = too expensive" the image of a one-man Oy is traditionally a scam-artist-gonna-run-off-with-our-monies, and a T:mi is "too small=can't provide 24/7 service" a one-man-corner-of-bedroom-operation so Ky is a bit like, "ok, we're small but talented".

Er, but as far as I know Ky has to be a partnership (i.e. 2 or more people...)

[Hank W.]

Yes, but in OY you cannot have single person owning the stock either.

[Guest]

What's the area in which you're going to establish your business?

TMI might be more simple, easier to run and cheaper than Oy, but if you're in an area which has a higher financial risk, I'd choose for the Oy.
As owner of a TMI you are going to be fully responsible for all the financial issues, also with your private capital. If you are an Oy, you will be only financially responsible with the part that you invested in the company.

If you go bankrupt (in the worst case) as a TMI your creditors are going to chase you for your last eurocent of your private capital. And you DON'T want to personally be filed bankrupt. That's going to leave a terrible mark on your sheet.
As an Oy only your Oy will be filed bankrupt and you will still have your own capital.

[Guest]

Oh, sorry... that was already said...

[Hank W.]

Is personal bankruptcy allowed in Finland? I think there was a law being passed, but did it pass yet? Otherwise under the old law, you and your kin is going to be haunted to the last eurocent...

[PeterF]

number of employees - 1 (myself) :!!

This answers your own question.
Both Ky ansd Oy require more than one owner/liablity for registration.
So unless you have a partner or joint stock holder...T.Mi is your only option..What you then do is to transfer your house/car/cat and dog etc ownership to your wife so if you go bust they are not sold to pay your debts.

[Guest]

What you then do is to transfer your house/car/cat and dog etc ownership to your wife so if you go bust they are not sold to pay your debts.

Isn't that already the case with most foreigners here?
No need to worry!

[PeterF]

What you then do is to transfer your house/car/cat and dog etc ownership to your wife so if you go bust they are not sold to pay your debts.

Isn't that already the case with most foreigners here?
No need to worry!

If you check the thread about snow in Helsinki you will see that Anja suggest that Phil's car should go to the dog as Oggie drive better than her in snow (and also probably better than Phil!)

[reindeer]

Hi,

My friend asked me to set up an Oy with him because he cant personally do it alone. However he also said that he will own all the shares and I will only be there to fulfil the requirements as stated in the law (at least 2 people?). Is what he said correct and is there any legal risk for me if I will be with him on the papers though I dont own anything?

[betelgeuse]

Hi,

My friend asked me to set up an Oy with him because he cant personally do it alone. However he also said that he will own all the shares and I will only be there to fulfil the requirements as stated in the law (at least 2 people?). Is what he said correct and is there any legal risk for me if I will be with him on the papers though I dont own anything?

Please start new threads instead of answering to ten your old threads.