It must have at least two partners; one must be the general partner, and the other is a silent partner.

This structure has the following attributes:

• The minimum share capital requirement has been abolished
• A person is sufficient to start a company in Finland;
• The management board provides the management;
• It must be recorded at the Trade Register before beginning an activity.

Description of Finland Limited Liability Company:

• Most common type of company in Finland;
• Shareholders have no personal liability for the company’s obligations;
• The board of directors must consist of at least two persons;
• There is no requirement for minimum share capital;
• At least one of the founders must be a resident of an EEA country;
• The founder does not have to be a national of Finland.

Benefits of Company Incorporation:

• Suitable for substantial investments, staff hiring, and profit-making, reducing risk and tax burden.
• Dividend distribution at a lower tax rate than regular income tax, fostering risk limitation.

Establishment Requirements:

• Registration in the Trade Register and a minimum share capital of 80,000 euros (in cash or property) are essential.
• At least one shareholder is mandatory for incorporation.

Board Composition for Companies with Over 80,000 Euros:

• Boards require more than three members, with over 50% being EEA residents.
• A managing director is a requisite for these companies.

Legal Framework:

• Operating under the Companies Act (Osakeyhtiölaki, 21.7.2006/624).

Under the Finnish income taxation act (tuloverolaki 1535/1992), taxpayers are categorized as residents (usually liable to tax) and nonresidents (liable to tax but with limitations).

1. Individuals as Finnish Tax Residents: Individuals qualify as Finnish tax residents if they have their permanent home in Finland or stay continuously for over six months.
2. Domestic Entities and Estates:

• Corporate entities, joint benefit administrations, or estates of deceased individuals are considered domestic if registered or established in Finland under Finnish laws.
• For death estates, residency applies if the deceased individual was a resident of Finland at the time of passing.

Key tax in Finland for companies:

Corporation Income Tax (CIT):

• All taxable company income faces a flat CIT rate of 20%, regardless of its source.
• Taxable income includes most earnings derived from a company’s activities, with exceptions like certain dividends, capital contributions, and specific capital gains.
• No general distinction exists between capital gains and other income; they’re taxed under the general CIT rate.
• Taxable income is typically calculated on an accrual basis, with exemptions like unrealized exchange gains and losses being taxable or deductible in the year of rate change.

Value Added Tax (VAT):

• Finland’s standard VAT rate is 24%, with reduced rates of 14% and 10% for specific goods and services.
• VAT applies to taxable supplies, including those subject to zero rates.