Starting a Business in Finland
Opening a business in another country presents different and sometimes unusual challenges compared to the challenges that we are used to here in the United States. There are various market forces that need to be taken into account when considering opening a business in another country. For our project we picked Finland. In our research these are the challenges and differences we would have to deal with if we were to open a business in Finland. (Nickels)
Legal and Regulatory Forces are laws, taxes, regulations and ways of conducting business. When opening a business in Finland there are general steps that should be followed.
The steps to open a business in Finland are:
1. Selecting the form of business.
2. Selecting a name of the business.
3. Election of Auditor.
4. Licensed trades.
5. Start-up Notification to the Tax Administration.
6. Opening of a Corporate Bank Account.
7. Regulatory Environment in Employment Issues (OrcaWorldwide)
In addition and really tied to the legal and regulatory forces are the Economic and Financial Forces. Several different types of taxes need to be taken in to consideration.
Taxes for business to be considered in Finland are:
1. “TAXATION IN FINLAND: In Finland, the State, the Municipalities, the Evangelic Lutheran Church and the Orthodox Church all have the power to levy taxes.”
2. “CORPORATE INCOME TAX: Companies resident in Finland are liable to tax on their worldwide income. The general rule is that if a company is registered in Finland, it is also considered a tax resident of Finland.”
3. “VALUE ADDED TAX (VAT): Value-added tax (VAT) applies to most transactions. Businesses with annual turnover above € 8,500 must register, and voluntary registration is possible. The standard rate is 22% and a lower rate of 17% applies to basic foodstuffs and animal feed. The 8% rate applies to passenger transport, books, medicine, hotel services, barbers, hairdressers,...