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flag Finland Finland: Operating a Business

In this page: Setting Up a Company | The Active Population in Figures | Working Conditions | Cost of Labor | Social Partners

 

Setting Up a Company

The Sole Proprietorship (Toiminimi)
Number of partners: 1 partner
Capital (max/min): No minimum capital
Shareholders and liability: Undefined
Co-operative
Number of partners: Minimum 3 founders
Capital (max/min): Decided by the founders, no minimum capital. Participation shares must be of equal value.
Shareholders and liability: Undefined
General partnership (Avoin yhtiö, Ay)
Number of partners: Minimum 2 general partners
Capital (max/min): No minimum capital
Shareholders and liability: General Partner is personally liable and without limitation for the company's debts and obligations.
Limited partnership (Kommandiittiyhtiö, Ky)
Number of partners: Minimum 1 general partner + 1 limited partner
Capital (max/min): No minimum capital. At least 1 limited partner with financial input.
Shareholders and liability: At least 1 of the members is liable for the debts and obligations of the company.
Private limited company (Osakeyhtiö, Oy)
Number of partners: Minimum 1 person
Capital (max/min): EUR 2,500
Shareholders and liability: Liability is limited to the amount contributed.
Public limited company (Julkinen osakeyhtiö, Oyj)
Number of partners: Minimum 1 person
Capital (max/min): EUR 80,000
Shareholders and liability: Liability is limited to the amount contributed.
The Competent Organization
National Board of Patents and Registration of Finland (NBPR)
Search a Company or a Financial Report
NBPR, National Board of Patents and Registration of Finland
 
Setting Up a Company Finland OECD
Procedures (number) 3.0 5.0
Time (days) 14.0 12.0

Source: Doing Business.

 
Business Setup Procedures
Consult Doing Business Website, to know about procedures to start a Business in Finland.
Trade Register

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The Active Population in Figures

201120122013
Labor force 2,682,0002,679,0002,685,000

Source: CIA - The world factbook

 
200920102011
Total activity rate -60.90%59.90%
Men activity rate 64.90%64.50%64.20%
Women activity rate 57.00%56.10%55.90%

Source: UN - United Nations

 
Employed Persons, by Occupation (% of Total Labor Force) 2008
Manufacturing 17.1%
Health and Social Work 15.0%
Real Estate, Renting and Business Activities 12.4%
Construction 7.2%
Transport and Storage 6.8%
Education 6.4%
Agriculture, Hunting and Forestry 4.4%
Hotels and Restaurants 3.5%
Electricity, Gas and Water Supply 0.7%
Households with Employed Persons 0.3%
Mining and Quarrying 0.2%

Source: International Labor Organization (ILO)

 
For Further Statistics
Statistics Finland
For Further Information About the Labor Market
Information on Finnish working culture

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Working Conditions

Legal Weekly Duration
Normal working hours may not exceed eight hours per day and 40 hours per week.
Retirement Age
Employees can retire with a pension between the ages of 63 and 68.
Working Contracts
Contracts can be either permanent contracts that remain valid for the time being or for a fixed term (specified in the contract). Permanent contracts (including permanent part-time contracts) represent 86% of the jobs; the representation of fixed term contracts (including part-time fixed term contracts) is 13,6%. The number of people working under fixed term contracts is growing rapidly.
Labor Laws
Consult Doing Business Website, to obtain a summary of the labor regulations that apply to local entreprises.

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Cost of Labor

Minimum Wage
Minimum wages are based on collective agreements; there is no standard minimum wage in Finland. An employer, as a member of the employer organisation which has concluded a collective agreement applicable in the sector, follows the collective agreement. An employer, as a non-member of the employer organisation, is also required to follow the generally binding collective agreement applicable in the sector.
Average Wage
Gross average monthly wage of men: EUR 3,358 (source: ILO, 2010);
Gross average monthly wage of women: EUR 2,736 (source: ILO, 2010).
Social contributions
Social Security Contributions Paid By Employers: A private employer’s social security contribution varies being 2,951%, 5,151% or 6,051%. The health insurance contribution of a private employer is 2.05% of salaries and the old-age pension contribution is 0.901%, 3.101% or 4.001% depending on the payment class.
Social Security Contributions Paid By Employees: - Health insurance contribution: medical treatment contribution 1.28% and daily allowance contribution 0.75;
- Unemployment insurance contribution: 0.58%;
- Pension insurance contribution: 4.3% for those aged under 53 years and 5.4% for those aged 53 years or more.

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Social Partners

Social Dialogue and Involvement of Social Partners
Approximately 67.8% of Finns are members of a trade union. The International labor Organisation (ILO) recently ranked Finnish unions as amongst the most effective in the world. Finnish unions are occupation-based. There are about 70 trade unions in Finland and they organize employees in all types of work. These unions are affiliated to one of Finland’s three labor confederations, SAK, STTK (en finlandés) and AKAVA.
Unions
The Central Organization of Finnish Trade Unions (SAK)
Confederation of Unions for Professional and Managerial Staff in Finland (AKAVA)
The Finnish Confederation of Salaried Employees (STTK) (in Finnish)
Unionization Rate
The level of Finnish employees’ unionization is among the highest in the industrialized world; About 67.8% of employees belong to a trade union.
Labor Regulation Bodies
Ministry of Employment and the Economy
The Confederation of Finnish Industries
SAK- Central Organisation of Finnish Trade Unions
International labor Organization

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Last Updates: February 2015