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How to Set Up Your Business in Finland as a Foreigner

While language barriers can pose a challenge, taking Finnish language classes can help your business earn faster acceptance.   

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What is required to set up a business in Finland
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If you desire to set up a new business venture, Finland is a remarkable place to consider. This is because it has a thriving job market and fair wages, not only to citizens but also to foreigners.

The business arena in Finland is indeed great and inviting. It’s accommodating to foreigners who want to bring their business dreams to life. 

We understand that starting a business in a foreign country can seem like a very difficult task. To help, we’ve put together a step-by-step guide that will show you how to start a business in Finland. In our previous article, we discussed the best profitable business ideas you can explore.

This article aims to guide you, step-by-step, on how to kick-start the process of starting a business in Finland. Regardless of whether you’re a Finnish native or a foreigner, this guide is going to be useful. Nonetheless, it’s mainly crafted with foreigners in mind. But before we dive into the how-to, let’s understand what makes the business climate in Finland so unique and enticing.

The Business Environment in Finland

Finland provides a supportive space for everyone, locals and foreigners alike who want to set up a business. Various factors make it a great spot for businesses, and these are rooted in technology, knowledge, and skills. 

Let’s break it down: 

Technology

Finland is a hotbed of technological advancements. It’s highly industrialized, and it’s not surprising that the United Nations Development Program ranked it as the world’s most technologically advanced country. They used the Technological Achievement Index (TAI) as their evaluation tool. 

Knowledge

Finland’s educational system is top-notch, equipping its students with comprehensive knowledge in their respective fields. People who graduate from Finnish schools and universities are well-rounded and proficient in their areas of study.

Skills

Education doesn’t end in acquiring knowledge; it’s about skills application too. Thus, the Finnish-educated workforce is highly skilled and competent, making a significant contribution to the business sector.

Beyond these qualities, what makes Finland favorable for businesses are the government’s policies designed to promote a thriving business landscape. Other stand-out aspects include:

  1. The governing authorities are fair and judicious in their decision-making.
  2. Numerous public and private organizations provide free general advice about starting a business in Finland.
  3. There’s a readily available market for the exportation of Finnish-made goods.

In essence, Finland offers a fertile ground for entrepreneurs and business owners to grow and succeed. Now, it’s time to take you through the step-by-step guide on how to start a business in Finland.

Also Read:

Building a Business in Finland: A Step-by-Step Guide

Step 1: Craft Your Business Idea

Before you set up your business in Finland, good thinking is essential. Ask yourself questions like, ‘What type of business do I want to open? Who do I want to sell to? Am I going to make something or resell it

What kind of products/services will I provide? This step involves time-imagining the business you want to create. Writing everything down is a great way to successfully craft your business idea.

Step 2: Expand the Business Idea

After you’ve thought about the idea, now it’s time to expand it. This involves researching the business landscape, and understanding what kind of business thrives where you are. 

Here, you’re building up on the idea you already got to make it work. Tools like SWOT analysis can help a lot here. Some key steps here include getting advice from legal authorities and deciding whether you’re going to sell online or offline or both.

Step 3: Pick a Business Name

Now that you have developed your business idea, select a name for your business. Choosing a name that reflects your business and brand is as key as the business itself. This is because your name is what customers will first hear or read. 

It represents you and your business identity so make sure to double-check if another business hasn’t already picked it. So, it’s smart to come up with at least 2-3 names just to be covered if the first choice is taken.

Step 4: Select an Appropriate Business Structure for Registration and Operations

Before you set up your company, choose the best business structure from the various types available in Finland. This is important before the registration and operation of the business. The following are the business model selections that you’re free to pick from.

  • Private Entrepreneur: formed with only one person
  • Limited Liability Company: formed by a natural or legal person. In other words, an individual or a corporation. There can be more than one.
  • General Partnership: formed by a minimum of 2 persons and has no minimum amount of capital.
  • Limited Partnership: formed by a minimum of 2 persons and must include at least one limited partner. This partner plays the role of an investor in this partnership.
  • Public Limited Company or Corporation: this is a form of limited liability company, however, this type is used by larger companies. A minimum of one person can form it but its share capital has to be at least 80.00 euros.
  • Cooperative Association: this type of company is formed by the members of a group. The funds are pooled together by the members of the group and used to solve a need that they have. There have to be at least 3 founders and rules guiding the cooperative.

Depending on the type of business model chosen, then you can talk about the funding.

Step 5: Find Your Funding

Once the business model has been decided, then it’s all about funding. After you understand the advantages and drawbacks of the model chosen, you can consider how to get the necessary funding. You can read more about how to attract angel investors to get started.

Step 6: Register Your Business

The legal side of starting and operating a business in Finland is very crucial. This is because Finland places high importance on the law.

Step 7: Get Your Business Underway

With every personal and legal obligation taken care of, you can start your business. This step has to do with getting the full operations of the business up and running.

Step 8: Track Your Purchases and Sales/ Services

It’s important to keep track of what you buy and the sales of products or services you provide. Also, understanding the culture of the people where you operate is crucial. When you offer your customers good products at a fair price, you keep them and attract more.

Also Read:

Conclusion

Finland is an excellent place to start a business as a foreigner. While language barriers can pose a challenge, taking Finnish language classes can help your business earn faster acceptance.   

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Musa Taras is a web designer, e-commerce content writer and a contributor at EntrepreneurBusinessBlog.com. Taras covers the business ideas and e-commerce categories of our blog. You can connect with him via email, [email protected].

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