Business Administration in Finland

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Setting Up a Company

Legal Business Entities

Types of Companies and Capital (Max/Min) Number of Partners/Shareholders and Liability Registration Fees
The Sole Proprietorship (Toiminimi)
No minimum capital
1 partner
EUR 65
Decided by the founders, no minimum capital. Participation shares must be of equal value.
Minimum 3 founders
EUR 330
General partnership (Avoin yhtiö, Ay)
No minimum capital
Minimum 2 partners
General Partner is personally liable and without limitation for the company's debts and obligations.
EUR 155
Limited partnership (Kommandiittiyhtiö, Ky)
No minimum capital. The silent partner must make a capital investment in the partnership.
Minimum 2 partners + 1 silent partner
At least 1 of the members is liable for the debts and obligations of the company.
EUR 155
Private limited company (Osakeyhtiö, Oy)
2,500 €
Minimum 1 person
Liability is limited to the amount contributed.
EUR 330
Public limited company (Julkinen osakeyhtiö, Oyj)
Minimum 1 person
Liability is limited to the amount contributed.
EUR 330
Business Setup Procedures
When drawing up status, a prior checking is required to confirm that the company's corporate name is available. The founders prepare the articles of incorporation which must be dated, signed and should contain a status proposition for the company. As far as the registration is concerned, a request, made in 2 copies, in Finnish or Swedish, must be sent to the Trade Register, within the 6 months following the signature of the status. A bank certificate should be included, stipulating that the capital mentioned in the status, has been deposited in a bank account. The company is issued its legal entity after registration. The NBPR provides detailed information on setting up a business in Finland.
The Competent Organization
National Board of Patents and Registration of Finland (NBPR)
Search a Company or a Financial Report
NBPR, National Board of Patents and Registration of Finland

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Working Conditions

Legal Weekly Duration
Normal working hours may not exceed eight hours per day and 40 hours per week.
Retirement Age
Employees can retire with a pension between the ages of 63 and 68.
Working Contracts
Contracts can be either permanent contracts that remain valid for the time being or for a fixed term (specified in the contract). Permanent contracts (including permanent part-time contracts) represented 86,4% of the jobs in February 2007; the representation of fixed term contracts (including part-time fixed term contracts) was 13,6%. The number of people working under fixed term contracts is growing rapidly.

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Cost of Labor

Minimum Wage
Minimum wages are based on collective agreements; there is no standard minimum wage in Finland. An employer, as a member of the employer organisation which has concluded a collective agreement applicable in the sector, follows the collective agreement. An employer, as a non-member of the employer organisation, is also required to follow the generally binding collective agreement applicable in the sector.
Average Wage
The average wage per hour was 13,80 EUR in the manufacturing industry (4th quarter 2006).
Social contributions
Social Security Contributions Paid By Employers: A private employer?s social security contribution for 2007 varies being 2,951%, 5,151% or 6,051%. The health insurance contribution of a private employer is 2.05% of salaries and the old-age pension contribution is 0.901%, 3.101% or 4.001% depending on the payment class.
Social Security Contributions Paid By Employees: - Health insurance contribution: medical treatment contribution 1.28% and daily allowance contribution 0.75;
- Unemployment insurance contribution: 0.58%;
- Pension insurance contribution: 4.3% for those aged under 53 years and 5.4% for those aged 53 years or more.

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Social Partners

Social Dialogue and Involvement of Social Partners
Approximately 80% of Finns are members of a trade union. The International labor Organisation (ILO) recently ranked Finnish unions as amongst the most effective in the world. Finnish unions are occupation-based. There are about 70 trade unions in Finland and they organize employees in all types of work. These unions are affiliated to one of Finland?s three labor confederations, SAK, STTK and AKAVA.
The Central Organization of Finnish Trade Unions (SAK)
Confederation of Unions for Professional and Managerial Staff in Finland (AKAVA)
The Finnish Confederation of Salaried Employees (STTK)
Unionization Rate
The level of Finnish employees’unionisation is among the highest in the industrialized world; 75% of employees belong to a trade union.
Labor Regulation Bodies
Ministry of Employment and the Economy
The Confederation of Finnish Industries
The Central Organisation of Finnish Trade Unions (SAK)
International labor Organization

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