Smarter to establish a business in Finland or elsewhere?

[Greg Kite]

Hi...I think this is a tricky question. A (Finnish) friend and I will establish an online business soon. Some of the business will take place in Finland, but most will take place abroad. We were wondering if it would be smarter to establish the business abroad (though we both live in Finland). Is it possible to start a business in, say, Estonia? And, if it is possible, is it even wise? We don't want to do anything illegal. So I guess what I'm asking is this: Is it legally possible and financially practical to start up a business in another country? Anybody know of the best countries to do it in?

[Rosamunda]

Hi...I think this is a tricky question. A (Finnish) friend and I will establish an online business soon. Some of the business will take place in Finland, but most will take place abroad. We were wondering if it would be smarter to establish the business abroad (though we both live in Finland). Is it possible to start a business in, say, Estonia? And, if it is possible, is it even wise? We don't want to do anything illegal. So I guess what I'm asking is this: Is it legally possible and financially practical to start up a business in another country? Anybody know of the best countries to do it in?

Each country has its own rules. I have no idea what the rules are in Estonia but certainly in Finland it is NOT necessary to live here in order to start a company here.

Wherever you choose to start up a company you will need to be able to cope with the bureaucracy in that country and keep up to date with such things as VAT law, bookkeeping requirements and so on.

And it would also depend on how much profit you intend to make. If you plan on making billions then I guess Lichtenstein is a good choice...

Then there is currency to think of (inside or outside the euro zone)...

There are many many parameters to take into account. So giving you a straight answer is almost impossible.

[BartS]

Each country has its own rules. I have no idea what the rules are in Estonia but certainly in Finland it is NOT necessary to live here in order to start a company here.
Wherever you choose to start up a company you will need to be able to cope with the bureaucracy in that country and keep up to date with such things as VAT law, bookkeeping requirements and so on.

Then there is currency to think of (inside or outside the euro zone)...

There are many many parameters to take into account. So giving you a straight answer is almost impossible.

Finland is a good choise because you live in Finland. Most of the rules are European union rules. Finnish bureaucracy is low and "working well". You can
find a lot of information on start ups and many sources for help. If you are going to choose limited liability company as a company form, you should consider the initial amount of share capital needed. This may vary a lot from country to country. (In Finland 2500 euros at the moment)

http://expat-finland.com/entrepreneursh ... shing.html
http://www.yrityssuomi.fi/default.aspx?nodeid=15328

[irnbru]

I once set up a company in Estonia for a previous employee, can't remember what it took exactly but it involved going to a couple of offices and the bank there to sign a few things. Definitely didn't have to be resident there. There was also the option of buying a company where all the setup stuff had already been done.

The benefits at the time were lower taxation rates IIRC

Anyway an ex finland forumer organised everything for me:

http://www.balticlink.co.uk/

And very good he was too. Highly recommended.