By Christine Hollinden, Hollinden | marketers + strategists
The role of marketing in professional firms is more important than ever. Firms must build awareness, fill their funnels, nurture leads, and position themselves as knowledge leaders. These actions turn prospects into clients, and then into referral sources. Marketing tends to be an afterthought, but to thrive, it must be at the front of your mind. Avoid these mistakes that hinder success.
By Taru Turunen, Rantalainen Oy
Finland might be one of the best countries in the world to set up a company – with its clean environment and stable economic and political conditions the country sets the perfect surrounding for developing your business.
The latest Social Progress Index 2020 shows that Finland is a great country in many aspects, ranking as the third of 163 countries. The quality of education, the amount of the share that is put into research and development funding, and Finnish companies' competitiveness have all been ranked highly by the international observers.
The administrative environment is very business-friendly in Finland. The government has several programmes for helping new actors expand or set up a business. According to the organisation Transparency International, Finland is the third least corrupt country in the world (2020).
International flights and a well-developed transportation infrastructure serve as effective connectors for global business. Advanced data communication technology, people casually utilising modern technology and applications in their daily life, and ubiquitous internet connections makes Finland one of the front row sites of the ongoing tide of digitalisation. In Finland, companies use Suomi.fi, which is an electronic right to sign and act on behalf of a company. The master user can manage sub users for the ID. With the Suomi.fi, a company can, for example, monitor the company tax account online.
Limited company or branch?
Most of the foreign companies starting their business in Finland establish a limited liability company or a branch in Finland.
The limited company is suitable for private businesses with a clear and stable shareholder structure. The company must have at least one shareholder and one to five regular members on the board of directors. At least one of the founders shall be a permanent resident in the European Economic Area (EEA) unless the National Board of Patents and Registration grants an exemption.
Steps for setting up a business in Finland:
- Select a name for your company and register it to the Trade Register. The Trade Register is maintained by the Finnish Patent and Registration Offce (PRH). https://www.prh.fi/en/kaupparekisteri.html
- Open a bank account for your company.
- Establish and register your business with the Y1 form to the Trade Register and Tax Administration Register. https://www.ytj.fi/en/index/notifications/start-upnotifications/foreignbusiness.html
As of July 2019, there is no minimum share capital when establishing a private limited company. A public limited company requires a minimum share capital of EUR 80,000. The share capital must be paid to the company’s bank account before the company can be entered in the Trade Register.
A branch is not a separate legal entity from its foreign parent company; therefore it may be managed by the same foreign managing directors. There is no minimum capital for establishing a branch in Finland, but it must operate in the same field as the foreign parent company.
Organisations from outside the European Economic Area (EEA) wishing to establish a branch in Finland have to apply for a permit from the Trade Register (PRH). Employment contracts with employees working in Finland might be subject to mandatory provisions of Finnish Labour Law.
Taxes and general information
Taxes depend on the following characteristics of the business:
- Type and purpose of the business
- Scale of the business
- Legal Form: Subsidiary or Branch
- Presence: Permanent or Temporary
- Rules for permanent presence in income taxation https://www.vero.fi/en/businesses-and-corporations/about-corporate-taxes/foreign_business_in_finland/income_tax/
- Rules for permanent presence in VAT taxation https://www.vero.fi/en/businesses-and-corporations/about-corporate-taxes/foreign_business_in_finland/tax-liabilities-in-finland/
The corporate income tax rate is 20%, and VAT tax rates are 24%, 14% and 10%.
The only mandatory organ in the company is the Board of Directors. The board is appointed by the General Meeting, and the decisions made in the meeting must be documented and sent to shareholders.
All companies are obliged to keep books. The management of an enterprise is responsible for arranging the accounting, and the duty starts when founding the company. The monthly responsibilities include tax-related declarations (among others VAT), and the annual obligation is a financial statement including balance sheet, income statement, and balance book. Auditing is mandatory if two of the following were met in both the past completed financial year and the financial year immediately preceding it: the balance sheet total exceeds EUR 100,000, the net sales exceed EUR 200,000, or the average number of employees exceeds three.
Please contact Taru Turunen, if you have any questions about starting a business in Finland. She would be happy to help.
GGI member firm
Advisory, Auditing & Accounting, Corporate Finance, Tax
More than 50 offces throughout Finland
T: +358 10 321 6721
Published: March 2020 l Photo: Elina - stock.adobe.com
By Ufuk Karaibrahimoğlu and Mert Arar, Financial Axis Independent Audit & Consulting Inc
Starting in the early 2010s, the number of mobile gaming start-ups has been increasing rapidly and Turkey has transformed itself into a hub. The number of experienced developers in Turkey, combined with important government incentives and the depreciation of the Turkish Lira against foreign currencies, have created a solid foundation. Newly founded Turkish mobile gaming start-ups enjoyed early success and increased in both revenue and active player numbers. The attention of global investors was increasing more and more as the Turkish Lira fell, decreasing the development costs and increasing the competitive advantage of Turkish start-ups. The COVID-19 pandemic was a catalyst in the industry; as people were forced to stay indoors, the demand for mobile games increased significantly. As Peak Games emerged as Turkey’s first unicorn, the Turkish mobile gaming industry experienced rapid growth and an increase in investor attention. Now let’s take a closer look at the Turkish mobile gaming industry.
By Meriç Çavuşoğlu, Financial Axis Independent Audit & Consulting Inc
The concept of “Startup”, something that was rarely heard of and in which only a handful of people were interested in Turkey at the turn of the 2010s, has today become a paramount part of the country’s technology sector. With its huge young population, surging number of educated people, and increasing levels of internet usage, Turkey has created a very dynamic startup ecosystem over the past decade, during which dozens of new startups were founded, numerous angel investors and venture capital firms emerged, lots of exits were made, and a supportive infrastructure was built with growing numbers of accelerators and beneficial government initiatives.
By Prof Sergio Guerrero Rosas, Guerrero y Santana, S.C.
In this new age of technology, businesses must be quick to adapt to every incoming change in order to stay relevant, and, currently, the most common strategy is to transition from a physical business model to an online or virtual model.
By Akshya Chandra and Chaitanya Kumar, SKC World
Over the last couple of decades, western nations have looked to southeast Asian countries for advantages in setting up their manufacturing facilities. Over the years, their focus has shifted to tapping its huge market potential. India has been consistently working towards creating the environment that supports manufacturing activities.
By Lucy Hirst, Openside Tutor
At Openside we are often struck by both the similarities between law and consulting business models, and the differences in approach and mindset to generating and delivering work. If a firm could combine the best of a law firm’s “IQ” (content) with that of a consulting firm’s “EQ” (or, ability to truly understand a client’s context), that firm would be unstoppable.
By Christopher Helmrath and Greg Hogan, SC&H Capital
Business owners considering the sale of their privately held companies might want to bone up on their ABCs in advance of the potential economic downturn. While the M&A market is still active, business should get educated on all of their transition options in pursuit of the very best deal. They need to learn — and understand — four more letters: E-S-O-P.
By Andy Jones, Haines Watts
If you are looking to expand, then the UK is a great place to do business. The UK has a wide and diverse marketplace covering many industries, such as automotive, aerospace and technology, to name but a few. For anyone looking to set up a manufacturing operation, distribution hub, service operation or even European headquarters, there are many reasons why the UK is the perfect place. The UK makes a fantastic export base and is one of the leading trading nations in the world.
By Rajas Kasbekar, Little & Co.
India is currently the ninth-largest civil aviation market in the world and is expected to climb to number three by the year 2020, with only the USA and China ahead. Unfortunately, India’s aviation sector has faced turbulent times over the past few years. The sector suffered severe financial woes as a result of the sharp escalation in the price of aviation turbine fuel (ATF), devaluation of the rupee, global slowdown, high operational costs, intense competition, steep taxes and climbing interest rates.