Self employment related to study

[Kimul]

I am student in Finland and I have visa type B.
I want to run my own business related to my study. I am not still sure about it's type (private trader or limited company).

I have some question

1- Is it possible I change my Visa from B to A with self employment job? what should be my income if I register my job as private trader or limited company per month?
2- How much should I pay tax over my income?

Please share me your similar experience and recommendation.

Thanks in advance.

[Kimul]

I am student in Finland and I have visa type B.
I want to run my own business related to my study. I am not still sure about it's type (private trader or limited company).

I have some question

1- Is it possible I change my Visa from B to A with self employment job? what should be my income if I register my job as private trader or limited company per month?
2- How much should I pay tax over my income?

Please share me your similar experience and recommendation.

Thanks in advance.

1. Yes. Around 1200 euros per month net income for employees, also your company should make significant amount to be able to pay you salary and other costs like insurance, pensions, etc. IMO if :tmi then around 2000 - 2400 euros per month should be your gross income.

2. depends on company type, is it oy or :tmi? In case of oy I guess 25% tax rate on profit of business and if you withdraw salary as employee of your own oy, then you also pay income tax on salary. In case of :tmi, I guess its calculated as earnings related tax for individual.

Thanks for your kind information.
By looking on your words, I think tmi is better for me. I want to work as consultor in field of building energy system. I want to work in Finland with my country because of my study and great experience of Finland in this field and as well access to many experts. Is it possible to register this activity as tmi?

How long before applying for changing the Visa I should start my business?

Thanks in advance for you help.

[betelgeuse]

1. Yes. Around 1200 euros per month net income for employees, also your company should make significant amount to be able to pay you salary and other costs like insurance, pensions, etc. IMO if :tmi then around 2000 - 2400 euros per month should be your gross income.

Do you mean revenue? Gross income is after costs (but before pension).

2. depends on company type, is it oy or :tmi? In case of oy I guess 25% tax rate on profit of business and if you withdraw salary as employee of your own oy, then you also pay income tax on salary. In case of :tmi, I guess its calculated as earnings related tax for individual.

Corporate income tax rate is 20%. If you pay salary, it's a cost to the company so you can't pay both income taxes and corporate taxes on same revenue. However, for dividends you pay both corporate income tax and capital income tax.

2- How much should I pay tax over my income?

The answer is so complex that people write books about it. There's online resources available. You can start for example here as it has also some information on taxation:

http://www.yrityssuomi.fi/en/yrityksen-perustaminen

You will need to hire an accountant as a foreigner to be able to handle accounting so they will be able to help you with things like taxation as well.

By looking on your words, I think tmi is better for me. I want to work as consultor in field of building energy system. I want to work in Finland with my country because of my study and great experience of Finland in this field and as well access to many experts. Is it possible to register this activity as tmi?

It does not seem like a protected trade so it should be. It's worth things that with TMI you apply for residence permits based on being entrepreneur and with OY you apply as an employee.

[Kimul]

1. Yes. Around 1200 euros per month net income for employees, also your company should make significant amount to be able to pay you salary and other costs like insurance, pensions, etc. IMO if :tmi then around 2000 - 2400 euros per month should be your gross income.

Do you mean revenue? Gross income is after costs (but before pension).

2. depends on company type, is it oy or :tmi? In case of oy I guess 25% tax rate on profit of business and if you withdraw salary as employee of your own oy, then you also pay income tax on salary. In case of :tmi, I guess its calculated as earnings related tax for individual.

Corporate income tax rate is 20%. If you pay salary, it's a cost to the company so you can't pay both income taxes and corporate taxes on same revenue. However, for dividends you pay both corporate income tax and capital income tax.

2- How much should I pay tax over my income?

The answer is so complex that people write books about it. There's online resources available. You can start for example here as it has also some information on taxation:

http://www.yrityssuomi.fi/en/yrityksen-perustaminen

You will need to hire an accountant as a foreigner to be able to handle accounting so they will be able to help you with things like taxation as well.

By looking on your words, I think tmi is better for me. I want to work as consultor in field of building energy system. I want to work in Finland with my country because of my study and great experience of Finland in this field and as well access to many experts. Is it possible to register this activity as tmi?

It does not seem like a protected trade so it should be. It's worth things that with TMI you apply for residence permits based on being entrepreneur and with OY you apply as an employee.

Aha...good points....
Is it possible that I work inside Finland by companies in my own country or other countries?
This activity that I want to get project from my country companies and do it inside the Finland can be defined as entrepreneur?
And how long before the applying for changing the type of Visa I should start my work?

[imranfuad]

Here are a few further nformation

http://uusyrityskeskus.fi/sites/default ... en_web.pdf

http://www.te-services.fi/te/en/jobseek ... index.html