Setting up a Finnish LLC as a foreigner 2026: step-by-step guide

By Nita Mäkinen, bookkeeper and owner of Tilitoimisto N.M, Nokia. Published 25 May 2026. Updated 7 July 2026.

Quick answer: a foreigner can own and register a Finnish limited company (osakeyhtio) without living in Finland. There is no minimum share capital, the PRH registration fee is 280 EUR online, and at least one board member must reside in the EEA unless PRH grants an exemption.

Finland is one of the easiest countries in Europe to start a business as a foreigner. No minimum share capital, electronic registration in 1-3 days, and clear rules. This guide walks you through the process step by step in 2026, with real examples from a Spanish founder we recently helped.

Case study: Sheimar Education Finland Oy

In May 2026, Mario from Spain set up Sheimar Education Finland Oy with our help. Mario had no prior Finnish business experience. The whole process from first call to registered company took 12 days, including bank account opening and VAT registration. Mario shared his experience on Trustpilot:

"Nita was always very clear with her instructions, quick to respond, and extremely professional at every step of the process. Her support made everything much easier and more transparent than I expected."

Mario's case is typical: an international founder who has a business idea and wants the formal setup done correctly without surprises. The rest of this guide follows the steps we took.

1. Decide on the company type

Finland offers four common business structures. For most foreign founders, an osakeyhtio (limited liability company, abbreviated Oy) is the best choice.

Osakeyhtio (Oy): Limited liability company. Owners are not personally liable for company debts. Best for any serious business activity. Setup cost 280 EUR.
Toiminimi (sole proprietor): Cheapest and fastest, but owner is personally liable. Only available to EEA residents.
Avoin yhtio / Kommandiittiyhtio (partnerships): Useful in specific cases, but rarely recommended for foreign founders.
Branch of foreign company (sivuliike): For larger international companies expanding to Finland.

For Mario's education business, we chose Oy because of liability protection and the formal credibility it gives when dealing with Finnish institutions like schools and ministries.

2. Choose a unique business name

The name must be unique in the Finnish trade register. Check availability at ytj.fi (free search). The name must end with the company form, for example "Oy" or "Aktiebolag".

Common pitfalls: too generic names get rejected (e.g. "Trading Oy" alone). Use 2-3 words that describe the business or include a unique element. Mario chose "Sheimar Education Finland Oy" because Sheimar is the family name and Finland makes the geographic scope clear.

3. Register at PRH through YTJ

The Finnish Patent and Registration Office (PRH) is the central authority. Registration is done through the YTJ portal at ytj.fi.

For electronic registration you need:

Strong identification: Finnish online banking ID, mobile certificate, or for foreigners a Finnish.fi authorization
Passport copies of all founders and board members
Memorandum of association (perustamissopimus) and articles of association (yhtiojarjestys)
Declaration of management body (vakuutus)
Information about the auditor or auditor exemption statement

If you do not have Finnish online identification yet, registration is done on paper, which takes 1-4 weeks. For Mario we used paper registration because Finnish.fi authorization for foreigners can take weeks to obtain.

The registration fee is 280 EUR (electronic) or 380 EUR (paper). No minimum share capital is required since 2019, so you can set the share capital to any reasonable amount, often 1-2,500 EUR.

4. Open a business bank account

Once the company is registered and you have a business ID (Y-tunnus), open a bank account. Common options in 2026:

Holvi: Fully digital, often accepts foreign founders without physical visit. Good for new companies. Check the current monthly fee at holvi.com.
OP Pohjola: Largest Finnish bank, traditional branch service. Requires in-person identification.
Nordea: International bank, good if you have existing Nordea relationship in another country.
S-Pankki: Slightly cheaper than OP, similar service.

For Mario, we recommended Holvi because of the digital onboarding and the integration with Finnish accounting software like Fennoa.

5. Register for VAT and other taxes

Most companies need to register for VAT (arvonlisavero) if annual turnover is expected to exceed 20,000 EUR. Below that, registration is voluntary but often useful: you can deduct VAT on purchases.

Other registrations to consider:

Prepayment register (ennakkoperintarekisteri): Lets customers pay invoices without withholding tax. Strongly recommended.
Employer register (tyonantajarekisteri): Only if you hire employees.

6. Set up accounting from day one

Finnish law requires all companies to keep bookkeeping (kirjanpito) from the first day. Receipts, invoices, bank statements and other financial documents must be stored for six years.

You can either:

Do it yourself: Use software like Holvi (built-in basic bookkeeping), Procountor, or Fennoa. Works for simple cases but requires learning Finnish tax terminology.
Hire an accountant: Most small companies use a small accounting firm. Prices start at 89 EUR/month for sole proprietors and 149 EUR/month for limited companies.

For international founders, hiring a Finnish accountant is almost always the right choice because of the language and terminology barrier. Contact us for a free 15-minute consultation if you would like to discuss your specific case.

7. Common pitfalls for international founders

1. Missing strong identification: Without Finnish online banking ID or Finnish.fi authorization, electronic registration is not possible. Paper-based registration takes weeks longer.

2. Unclear share structure: If you have multiple international shareholders, document the share split clearly in the memorandum of association. Confusion here causes problems later.

3. Forgetting prepayment register: Without it, customers must withhold tax from payments to you. Always register.

4. Wrong VAT timing: VAT registration takes 1-2 weeks to process. If you start invoicing immediately, you may need to invoice without VAT and then re-invoice. Plan ahead.

5. No accounting from day one: Some founders think bookkeeping starts when revenue starts. Finnish law disagrees. Even setup costs need to be recorded.

8. Timeline and cost summary

Realistic timeline for a foreign founder starting from scratch:

Day 1-3: Decide company type, choose name, gather identification documents
Day 4-7: Prepare memorandum of association, articles of association, signature documents
Day 8-15: Submit registration (paper takes longer)
Day 16-21: Receive Y-tunnus, open bank account, register for VAT
Day 22+: Start operating

Realistic cost: the 280 EUR PRH fee is the main upfront expense. Ongoing costs are the bank's monthly fee plus accounting, which starts at 89 EUR per month for sole proprietors and 149 EUR per month for limited companies.

Need help setting up your Finnish company?

I help foreign founders set up and run Finnish companies in English, like Mario, who founded Sheimar Education Finland Oy with me in 2026. I handle the paperwork, registrations and ongoing accounting myself. Free 15-minute consultation.

Phone: +358 41 312 7714

Email: [email protected]

Frequently asked questions

How much does it cost to set up a limited liability company in Finland?

Direct costs in 2026: PRH registration fee 280 EUR (electronic) or 380 EUR (paper). No minimum share capital is required since 2019. Beyond the registration fee, budget for the bank's monthly account fee and ongoing accounting. For most founders the PRH fee is the only significant upfront cost.

Can a foreigner own a Finnish LLC without living in Finland?

Yes. Finnish law allows foreign nationals to own and direct a Finnish osakeyhtio. At least one board member must reside in the European Economic Area (EEA), unless the company gets a separate exemption from PRH. Founders from outside EEA usually appoint a Finnish or EEA-based board member.

How long does it take to register a Finnish LLC?

Electronic registration through YTJ takes 1-3 business days if all documents are correct. Paper-based registration takes 1-4 weeks. Common delays come from missing passport copies, unclear business names, or incomplete shareholder identification.

Do I need a Finnish bank account for the company?

Yes. Most banks require an in-person meeting and strong identification. OP, Nordea, S-Pankki and Holvi are common choices. Holvi is fully digital and often accepts foreign founders without a physical visit. Some traditional banks may refuse non-EEA founders without local presence.

Do I need to register for VAT?

VAT registration is mandatory if annual turnover exceeds 20,000 EUR. Below that, registration is voluntary but often useful (you can deduct VAT on purchases). VAT rate is 25.5 percent for most goods and services in 2026.

Can I run a Finnish company from abroad?

Yes, technically. However, banks, tax authorities and customers often expect a Finnish board member or local representative. Most international founders either appoint a Finnish board member or move to Finland for the early stages.

Do I need to speak Finnish to set up a company?

No. Most official forms are available in English at PRH and Tax Administration. Accounting can be done in English with a bilingual accountant. Some banks may require Finnish for paperwork, but English is usually accepted in larger banks.

What is a Y-tunnus (Finnish business ID)?

The Y-tunnus is the business ID that PRH assigns when your company is entered in the trade register. You need it to open a business bank account, register for VAT and the prepayment register, and to invoice customers. You can check any company's Y-tunnus for free at ytj.fi.

What is the prepayment register and should I join it?

The prepayment register (ennakkoperintarekisteri) lets your customers pay your invoices without withholding tax from the payments. You apply through YTJ, usually at the same time as company registration. Without it, customers must withhold tax from payments to you, so joining is strongly recommended for almost every new company.

How much does accounting cost for a Finnish limited company?

Small accounting firms typically charge a fixed monthly price. For a limited company prices start at around 149 EUR per month, and for sole proprietors at 89 EUR per month, plus VAT. Finnish law requires bookkeeping from the first day, and receipts and other records must be stored for six years.