Becoming a private entrepreneur

You can set up a private entrepreneurship in Finland, if you are a natural person and you are not bankrupt or subject to any limitations of mandate. You also need to have a permanent place of residence in the European Economic Area. In other words, you should be a resident of an EU country, Liechtenstein, Norway or Iceland.

If you live permanently outside the European Economic Area, you will need a permission from the Finnish Patent and Registration Office for starting up as a private entrepreneur. 

If you are a minor over the age of 15 but under the age of 18, you will need your parent’s or guardian’s consent for starting up as a private entrepreneur. A minor submits a start-up notification to the Trade Register using a paper form. If the guardian would like to start a business for and on behalf of a minor, the guardian will require the permission of the Digital and Population Data Services Agency, which acts as the guardianship authority. Read more about minors`right to start a business (in Finnish)Opens in a new window..

If you want to file the start-up notification electronically, you must be at least 18 years of age. In addition, you will need a Finnish personal identity number and online banking identification, a mobile certificate or an identity card with a microchip.

The start-up notification of a private entrepreneur with the Finnish Trade Register costs EUR 75. When your company can be found in the Trade Register, it is credible and your company name is protected.

Note, however, that you usually need some money for the initial acquisitions. You should also reserve some money to cover the running expenses for at least 2-3 months. You will also you need money to live on before your company starts to generate enough income.

You can apply for start-up money to secure your livelihood in the initial stages of your business. You should apply for the start-up grant in advance, in good time before setting up the company. If necessary, you can also apply for a loan, for example, from a bank or another financial institution. If your company lacks the guarantees required by a bank, Finnvera's partial guarantee, i.e. a guarantee that the bank can apply for your from Finnvera, can be a solution for arranging the financing.

It is fairly simple to set up a business as a private entrepreneur, as it does not require any special formalities. Usually, however, it is worthwhile to register your company in the Trade Register, even if it might not be mandatory in your case.

You can submit the start-up notification electronically to the Trade Register in the Business Information System (YTJ) if the following requirements are met:

• you are at least 18 years old
• you are not bankrupt or subject to any limitations of mandate
• you have a Finnish personal identity code
• you have personal online banking codes, a mobile certificate or an identity card with a microchip (HST card).

You will need to report the following information: your company’s business name, place of business, line of business, contact information and your personal details. You can provide several options for your company’s business name. This is not mandatory, but it may speed up the processing of your notification.

After you have submitted the start-up notification to the Trade Register online and received a business ID, you can submit a change notification to register in the VAT register, prepayment register and the employer register of the Finnish Tax Administration and give all other necessary information. Entrepreneurs must also make tax prepayments on their income. You can request tax prepayments.

Alternatively, you can 

• send the start-up notification on paper (in Finnish or Swedish)Opens in a new window.
• submit your start-up notification in the MyTaxOpens in a new window..

Under the law, a private trader (business name) must be registered in the Trade Register if:

• the final accounts are reported for registration under the Accounting Act
• the trader's permanent residence is outside the EEA.Opens in a new window.

Other private traders may also register in the Trade Register, but they do not have a legal obligation by the Trade Register Act to do so.