Oy (Private limited company)

Application
The most common form of company for Finnish businesses, from very small up to large companies.

Registration
Must be registered at Trade Register and Tax Adminstration.

Capital requirement
Minimum EUR 2,500

Management
A board of directors consisting of one or more persons. If less than three, a substitute member must be appointed. Optionally one managing director for running business. Optional advisory board.

Place of management
At least one of the members of the board of directors as well as a possible substitute member and a possible managing director must be a EEA resident (citizenship not relevant).

Accounting
Annual financial statements. At least one independent auditor with public license (exceptions apply for very small companies).

Tax
Corporate income tax rate of 20.0%.

Incorporation
Must be recorded in a deed of formation, dated and duly signed by the founders. The deed of formation must contain a proposal for the articles of association.

Corporate law
The new Finnish Companies Act.

Source: BJL Bergmann Attorneys at Law