Starting a business in Finland

In Finland, certain sectors are already experiencing a skills shortage. Häme Vocational Institute aims to address this skills shortage. In the Kanta-Häme region, various training sessions and activities have been organized through the KULKEVA and HAALARI projects to improve the employment and integration of foreigners into Finnish working life. One of the goals of both projects has been to support employment and develop activities in the Kanta-Häme region. Labor migration and entrepreneurship in Finland often raise questions, and these have been discussed in connection with the projects.

In the Entrepreneurship in Finland training held in the spring of 2024, immigrants had the opportunity to get acquainted with the basics of entrepreneurship. This blog discusses the practical permit and application procedures related to work and entrepreneurship.

Permits related to starting a business in Finland

An EU citizen can start a business in Finland like any other Finn. A foreigner’s citizenship does not determine the need for a permit, but the need for a permit is determined by the person’s permanent residence. If a person does not have a permanent residence in the European Economic Area (EEA), they may need a permit from the PRH (Finnish Patent and Registration Office) to act in management and responsibility positions of a company registered in the Trade Register or to act as a private entrepreneur (sole proprietor) in Finland. For example, a board member or managing director may need a permit.

Beneficial links

Below are some links related to possible required permits for those permanently residing outside the EEA area:

Permit to persons living permanently outside the EEA

Permits to persons from outside the European Economic Area (EEA)

Notifications can be made in the electronic YTJ service if:
– You are of legal age, i.e., 18 years old
– You have a Finnish personal identity code
– You have personal online banking IDs, a mobile ID, or a chip ID card (HST card)

When a foreign person who does not have a Finnish personal identity code is entered in the Trade Register for the first time, a clarification of the person’s existence must be attached to the notification, for example by attaching a copy of the passport to the notification.

Notification for private entrepreneur 

Notification for limited company

Otherwise, notifications can also be submitted on paper forms.

Updated and new permit procedures 

The residence permit procedure for entrepreneurs was renewed in 2018. Previously, the residence permit only applied to self-employed people; now it applies to all company forms and also to responsible partners of general and limited partnerships and cooperative entrepreneurs. The condition for granting a residence permit is working in the company, and this work must take place in Finland.

The law change also took into account start-up or growth entrepreneurs. In this context, a growth entrepreneur is considered to be a foreigner whose purpose is to mainly act in a position of responsibility in a company registered or to be registered in Finland, in which personal expertise and business model meet Business Finland’s financing requirements (innovative, fast-growing companies). This is because the expertise of Business Finland in innovation financing is utilized in the residence permit consideration. Obtaining a permit does not require, in this case, a sufficient livelihood requirement in business activities. The assessment of the conditions takes into account the applicant’s other assets, such as savings.

The conditions for a start-up entrepreneur’s residence permit differ from an entrepreneur’s residence permit in that a growth company is characterized by greater risk-taking than so-called normal business activities. In addition, the start-up company aims for rapid international growth of its operations. For this purpose, an expedited permit procedure has been created for special experts.