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Updated: Sep 26, 2022

Learn about everything you need to become a sole proprietor in Finland.

One of the global leaders in world happiness, economic development, education, and civil liberties, Finland’s high quality of life attracts workers and businesses from across the globe. And with an economy primarily centered on the service sector, Finland is a country rich in opportunities for those willing to work for themselves.

If you’re interested in taking the reins of your career and starting a sole proprietorship in Finland, we’ll explain everything you know to get started! Just keep in mind that nothing you read here should take the place of legal counsel.

What is a sole proprietorship in Finland?

A sole proprietorship is a fastest and most straightforward way to start a business in Finland. But unlike other forms of businesses that limit an individual’s liability, the owner of a sole proprietorship is personally liable for all their company’s debts.

How do I become a sole proprietor in Finland?

Believe it or not, the easiest way to establish a sole proprietorship is to just start working. So long as you are a citizen of the European Economic Area (EEA), your sole proprietorship does not require registration unless you meet one of the following conditions:

  1. Your business employs anyone besides your spouse or your children or grandchildren (who must be minors)

  2. Your trade requires you to be licensed

  3. You operate your business from a permanent facility outside of your home

However, registering your sole proprietorship comes with benefits, such as protecting your company’s name and allowing you to apply for certain types of business loans.

If you do choose (or are required) to register your sole proprietorship, you’ll need the following to register your business. You can do so through the Business Information System (YTJ) provided you:

  1. Are at least 18 years of age

  2. Have a Finnish personal identity code

  3. An electronic identity card (HST card), mobile certificate, or personal internet banking code

With this information, you will log onto the YTJ’s online services portal and file a start-up notification with the Trade Register, where you’ll be assigned a business ID. You’ll need to pay a fee of €60, which will include registering your details with the Trade Register. You can also file for VAT through this same service if your annual sales of goods or services exceed €15,000. 

The Finnish government even includes a video tutorial to walk you through all the steps.

If you instead would like to file your registration by mail, you’ll need to fill out a Y3 form and a €115 fee to PRH – Verohallinto, Yritystietojärjestelmä, PL 2000, 00231 HELSINKI.

What kind of taxes will I pay as a sole proprietor in Finland?

As a sole proprietor, you’ll be required to pre-pay an estimated tax based on your projected business income for the year. However, when you pay your personal income tax, your net business profit will be added to any other income you’ve generated during the year, and any discrepancy between your pre-payment and actual earnings will be rectified.

If you’ve registered for VAT, you’ll need to pay a standard rate of 24% unless your products or services qualify for a reduced VAT rate. Your VAT payments will be due monthly, quarterly, or yearly, and your payment schedule will be assigned with your VAT application.

Receiving payments in Oman via LiqReceiving payments in Finland via Liquid.

With the world at your fingertips, you and your sole proprietorship are ready to start sourcing work from an entire globe’s worth of clients. When you’re ready to invoice your clients in America, you can use Liquid to send invoices in EUR and other select foreign currencies. Work Orders / Project Proposals can also be agreed to in EUR in Liquid.

Liquid supports payments to Finland and 175+ countries worldwide in USD and selects foreign currencies, including EUR. Payments arrive in 2-5 business days via wire transfer, whether the invoice was sent to an existing client using Liquid or a client who is new to Liquid.

Liquid charges clients who initiate payments $3 per US invoice paid and $8 per international invoice paid.

Liquid never charges Vendors to receive payments, even when Vendors are requesting payments from Clients who are not current users of Liquid.

Now you’re ready to start making money in Finland!

With the service sector topping Finland’s economic breakdown, you’re in excellent company to work with other freelancers and maximize your potential. Your search for clients doesn’t have to end at Finland’s borders, and when those clients are in the US, Liquid is your seamless way to accept work orders, manage invoices, and get paid.

Ready to invoice your United States-based clients? Try Liquid today



3 min read

Q: How Do I Start a Sole Proprietorship / Toiminimi in Finland?

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