With low crime rates, free healthcare, a strong economy, and plenty of natural beauty, it’s easy to understand why people love living in Finland. And for entrepreneurs looking to start a business, Finland is an excellent place to set up shop. But you don’t want to dive in without knowing the country’s unique nuances and regulations.
Read on to uncover six things every entrepreneur should know before starting a business in Finland.
1. Research the Local Market
If you’re used to doing business in your home country, you’ll need to educate yourself on market conditions in Finland. Don’t let the country’s smaller size fool you, either. Finland’s well-educated citizens will have high expectations, especially for products that rely on the latest tech innovations.
Look up Finland-based companies that offer similar services, and know the success rates of companies in your industry. Read local business magazines to gather insights and know who the local power players are in your new home.
2. Know the Business Structure Options
Much like other countries, Finland has several different business structures to suit your company’s goals. You can choose from sole traders, limited liability companies, and general or limited partnership structures. For new companies seeking to limit risk, the limited liability company (LLC) option may be the best choice.
Be sure to understand the Finland business setup process so you can be efficient in getting your business off to a good start. For instance, you’ll want to register your business with the Finnish Trade Register. And gather necessary permits so you’re legally able to do business. When in doubt, reach out to other local business leaders to ensure you’re not overlooking critical details.
3. Engage with the Culture
Yes, many Finnish citizens speak English well. But you don’t want to make assumptions – and you’ll show respect for Finnish culture by learning even a little bit of their language. That means learning key phrases or words in both Finnish and Swedish. You may even improve relationships with Finnish customers if you can speak their language.
Don’t stop with language etiquette, though. Make an effort to understand Finland’s business culture, too. Depending on where you’ve done business previously, the directness and interest in long-term relationships may come as a surprise. Be aware of cultural norms so you can seamlessly interact with potential new customers.
4. Learn About Taxes
Every country has a different approach to taxes, and Finland’s system comes with high taxes, with a corporate tax of 20%. While this is lower than that of many European countries, it could be higher than you were expecting.
Talk to a tax professional to know how taxes will impact your new business and how you can save the most money through deductions. Additionally, plan on registering for a business ID so you’re established in the system.
5. Be Clear on the Laws
Will you be hiring local workers when your company starts doing business in Finland? Know the Finnish employment laws first – the employee rights, health benefit requirements, and occupational safety regulations.
Overall, Finland prioritizes creating a healthy lifestyle, meaning that work weeks should be capped at 40 hours. Further, you’ll need to offer plenty of vacation time and flexibility to your workers. If you don’t honor these cultural preferences, you may find yourself shorthanded.
6. Explore the Support System
Finland is known for giving new businesses public funding and grant opportunities. And you’ll find plenty of startup hubs geared toward helping new businesses hit the ground running. Take advantage of this supportive atmosphere and network within your community. And know that you’ll be entering a climate where strong social and health benefits can give you the work-life balance you deserve.
Start Your Business in Finland
Ready to start your business in Finland? First, you’ll want to understand the local market and cultural norms so you can engage effectively with the business community – and future customers.
Aim to know as much as you can about the legal framework, too, and the tax system so your finances are in check. Preparing thoroughly can set up your business for success in Finland’s thriving communities.
