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Study • Apartment • Work — The Ultimate Finland Guide
📘 3 Business Types in Finland You Must Know
Starting a business in Finland? One of your first and most important steps is choosing the right legal form. This decision affects your taxes, liability, and how your business can grow. Let’s explore the three essential types 👇
📊 Overview
| Abbreviation | Finnish Name | Type | Best For |
|---|---|---|---|
| Tmi | Toiminimi | Sole Proprietorship | Freelancers, solo entrepreneurs |
| Oy | Osakeyhtiö | Limited Liability Company | Growing businesses, investors |
| Ry | Rekisteröity yhdistys | Registered Association | Clubs, societies, non-profits |
1️⃣ Tmi (Toiminimi / Sole Proprietorship)
✅ A simple setup where you and your business are one. Perfect for freelancers and small-scale entrepreneurs.
- No minimum capital needed
- Quick and affordable registration
- Profits taxed as personal income
- You bear full personal liability
🛠 Registration Steps
- Register via YTJ.fi
- Apply for Business ID, VAT, and tax registration
- Choose a business name (Tmi optional)
✅ Pros
- Easy and cheap setup
- Full control
- Minimal paperwork
❌ Cons
- Unlimited personal liability
- Scaling is difficult
- Tax burden increases with income
2️⃣ Oy (Osakeyhtiö / Limited Liability Company)
✅ A separate legal entity — your personal assets are protected. Ideal for businesses that want to grow, hire, or attract investors.
- No minimum share capital (since 2019)
- Professional credibility
- Can attract investors easily
🛠 Registration Steps
- Prepare Articles of Association
- Register via PRH / YTJ
- Appoint board members
- Register for corporate taxes and VAT
✅ Pros
- Limited personal liability
- Attracts investors easily
- Trusted company image
❌ Cons
- More paperwork
- Higher costs
- Formal governance required
3️⃣ Ry (Registered Association / Non-Profit)
✅ A non-profit entity for clubs, societies, or community projects. Once registered, it becomes a legal person with full rights.
- At least 3 board members
- Must have bylaws (säännöt)
- Cannot distribute profits to members
✅ Pros
- Legal and recognized structure
- Good for non-profit causes
- Public credibility
❌ Cons
- More formalities
- No profit sharing
- Less flexible for business use
📋 Name & Registration Tips
- Check name availability at PRH.fi or YTJ.fi
- Use proper suffix (“Oy” or “ry”)
- Avoid misleading or duplicate names
🧮 Which Business Type Fits You?
| Goal | Best Type | Why |
|---|---|---|
| Solo entrepreneur | Tmi | Simple and affordable |
| Growth & investors | Oy | Limited liability, scalable |
| Non-profit club | Ry | Community-oriented |
| Both business + non-profit | Oy + Ry | Separate legal and financial control |
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