Business Administration in Finland
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)
|| 1 partner
|| Minimum 3 founders
| General partnership (Avoin yhtiö, Ay)
|| Minimum 2 partners
| Limited partnership (Kommandiittiyhtiö, Ky)
|| Minimum 2 partners + 1 silent partner
| Private limited company (Osakeyhtiö, Oy)
|| Minimum 1 person
| Public limited company (Julkinen osakeyhtiö, Oyj)
|| Minimum 1 person
- 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
- 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.
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.
- 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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Inspired Multi Dimensional Services Ltd on 7 Jun 2014 related to Business Administration in Finland