Finland is one of the countries that attract foreign entrepreneurs with the conditions for doing business. The advantages of this state are obvious: a developed economy, a stable political environment, and a convenient geographic location. All this prompts many Russians to think about how to buy a business in Finland. In addition, the rules for doing business in this country are the same for everyone and do not depend on the nationality of the entrepreneur.
Reasons for foreigners buying a business in Finland
According to criteria such as social benefits and business activity, this Scandinavian country is among the top 10 European countries. And the standard of living in Finland is one of the highest in the world.
The combination of these factors motivates foreigners to obtain a residence permit (hereinafter - residence permit) in this country. To achieve this goal, it is enough to purchase a ready-made business or register a new entrepreneurial structure.
Obtaining a residence permit in Finland gives the following advantages:
- the same rights and social protection as the citizens of the country;
- the possibility of free visiting the Schengen area;
- having lived for 4 years in Finland, the holder of a residence permit can apply for citizenship;
- take free language courses and adaptation program focused on reunited families, etc.
According to statistics, there are currently about 30 thousand immigrants from Russia in Finland. And every year their number increases by more than one hundred.
And in the city of Lappeenranta, located in South Karelia, Russian speech is generally heard from everywhere: while walking along its streets it sometimes seems that you are in St. Petersburg, and not in the country of Suomi. And this is not surprising, because from the northern capital to this Finnish settlement by a regular bus you can get there in just 3 hours.
Buying a business in Finland opens up opportunities for Russian entrepreneurs to legally invest in the economy of a European country. And by choosing the right field of activity, you can get a significant profit.
However, it is necessary to have a certain personal experience of doing business and take into account the peculiarities of the financial market. And although many entrepreneurs prefer activities based on economic contacts with the Russian Federation, one should not forget that the service sector and tourism are flourishing in Finland.
Most bought types of business in Finland
The number of companies that can be classified as large businesses in this country is very small. It is dominated by medium and small businesses. This is why Finland has ideal conditions for successfully running a small business of your own.
The option of purchasing a ready-made business is more suitable for those people who have significant funds and want to start working as soon as possible. And although the process of transferring cases to a new owner from the previous one is somewhat stretched in time, it is still not opening a company from scratch.
There are many companies for sale in Finland in various industries. Consider only those of them that are considered the most profitable capital investment here.
Catering business
Many foreign entrepreneurs seek to buy a restaurant in Helsinki, believing that such a business will be the most profitable in the capital of the state. This thesis has the right to exist, but it's not that simple. The level of income is influenced by many factors, including the location of the establishment, its turnover, and so on.
The cost of a ready-made business in this area fluctuates in a wide range. For example:
- the price of a shopping pavilion with a cafeteria is about $ 10 thousand. This is the most affordable purchase;
- buying a pizzeria in the capital of Finland will cost 2 times more - $ 20 thousand;
- for a beer restaurant you will have to pay at least 45 thousand dollars;
- the cost of a Japanese restaurant in the capital reaches $ 140,000.
Car repair shops and service stations
In the country of Suomi, such enterprises work on weekdays from 8.00 to 16.00, to a maximum of 17.00. On Saturday they close an hour earlier. But only an extremely persistent car enthusiast can find a working car service on Sunday.
As for the cost, the sale of a car workshop in the metropolitan area with all the necessary equipment and a room of 320 sq. m costs about 225 thousand dollars.
In other municipalities in Finland, this amount will be lower. In particular, in the north of the country, a small service station can be purchased for about 80 thousand euros.
Tourism and hotel business
These types of business activities are especially popular among foreign investors. There is a demand for rental of cottages and hotel rooms at tourist centers at any time of the year. And the prices for such real estate objects are quite reasonable.
So that you can better navigate them, we will give one example. In the Mikkeli region, located just an hour's drive from the Russian border, in the fall of 2021 it was possible to buy a tourist complex with an area of about 840 square meters for 235 thousand euros. Moreover, the development of this business is possible in the future, since according to the documents it is allowed to carry out additional construction on a site with an area of 1600 sq.m.
Beauty salons in Finland
Our compatriots have opened a large number of such establishments in the country of Suomi. Most of them are located in the metropolitan region.
The following organizational and legal forms are suitable for opening a beauty salon:
- full partnership - used by a narrow circle of co-owners;
- private firm - relevant for individuals with separate offices.
A few words about prices. Their spread is significant. So, for example, in Helsinki in the fall of 2021, you can buy a functioning beauty salon with a wide client base for 169 thousand euros. And the same institution, but with qualified personnel and an online store, will cost more - the price starts at 285 thousand euros. However, in both cases, the buyer can lower the final cost of the objects.
The procedure for opening a business by foreigners in Finland
Most often, Russian entrepreneurs open their own business in the field of trade and services. However, their choice is not limited to these industries only.
After the entrepreneur decides in which area he will specialize, he will have to do the following:
- obtain a business permit from the Ministry of Trade and Industry of Finland;
- pay the state fee;
- submit all necessary documents to the Office of Registration and Patents;
- to make seals and stamps;
- to select employees for the staff of the enterprise. At the same time, among the persons with the status of "company manager", there must be representatives of the indigenous population - Finns. It is especially important to find a responsible and highly qualified accountant - this will avoid problems with tax payments, since there is very strict and serious control over this in Finland.
On the territory of the country of Suomi, the following organizational and legal forms of entrepreneurial activity are allowed:
- individual entrepreneur;
- joint-stock company;
- open joint stock company with limited liability;
- cooperative;
- limited partnership or partnership form of organization.
The easiest and most common way to run your own business in Finland is to work as a private entrepreneur.
In an individual private enterprise, the entrepreneur himself makes decisions and is himself responsible for them.
An individual also has the right to form a limited liability company. Such an organization is characterized by the following points:
- the amount of the authorized capital is not less than 8000 euros. Funds must be deposited at the time of registration of the company;
- the sale of shares to third parties is prohibited;
- management of the company is possible by one director, but at the same time the following requirement must be observed: most of the representatives of the management staff of the organization must have the status of an EU resident.
Thus, taking into account the state duty levied in Finland for the registration of an enterprise of this type (350 euros), its opening will cost a foreigner at least 8350 euros. At least the same amount will have to be paid for the purchase of a limited liability company that did not carry out financial activities.
When establishing an open joint stock company by an individual, the following should be taken into account:
- the size of the authorized capital must be at least 80 thousand euros;
- the time interval between the registration of a legal entity and the contribution of the authorized capital - no more than 3 months;
- the sale of shares to third parties is not prohibited;
- the organization is managed by the board of directors. The requirements for its composition are formulated as follows: the CEO and at least one of the directors must have EU resident status.
There are two types of partner organizations in Finland:
- A partnership based on the unlimited liability of its members. The founders of such an organization must be at least 2 people. It is characterized by the following:
- transfer of rights to third parties is allowed only after notification of the general meeting of partners and in case of a positive decision;
- all partners bear the same responsibility for paying debts and fulfilling obligations;
- under the terms of the founding agreement, the general partners are responsible for the management of the company.
- Limited liability partnership of its members. The minimum number of founders of such an organization is 2 business entities. These can be both legal entities and individuals. One of them is assigned the role of a general partner. A firm of this type is characterized by the following:
- responsibility for the fulfillment of obligations and repayment of debts is evenly distributed among the general partners;
- the responsibility of the remaining partners is determined by the scope of their share;
- it is prohibited to transfer rights to third parties without the permission of the general meeting.
It should be noted that the creation of a partner organization does not require the contribution of the authorized capital. But the state duty in the amount of 350 euros will have to be paid.
The cooperative form of the enterprise is extremely rare in Finland. It must be established by at least 3 people. Moreover, they are not required to be EU residents - this is the main feature of this type of business.
Advantages and disadvantages of starting a business in Finland
First, let's dwell on the positive aspects:
- a citizen of any state can open a business in the country of Suomi;
- it is possible to obtain a residence permit in Finland;
- entrepreneurship in Finland is supported at the local, regional and national levels;
- when registering an enterprise, there are no lengthy bureaucratic procedures;
- the country is interested in the influx of young businessmen introducing new technologies. The lowest tax rates apply to them and the best conditions for doing business have been created;
- low inflation in the country;
- political stability;
- favorable geographic location of the country;
- friendly local people.
The difficulties should be highlighted:
- the presence of a language barrier. To overcome it, you need to know at least English;
- business development requires its own funds. The fact is that Finnish banks rarely lend to foreign citizens;
- good knowledge of Finnish legislation is required;
- understanding the specifics of doing business in this country is important;
- when hiring Finns for work, it is recommended to take into account that their mentality differs from the Russian one. Therefore, in order to avoid conflict situations, it is worth learning more about the culture of the country.
Speaking about the advantages of doing business in Finland, one cannot fail to mention that there are many institutions operating in this country that help our compatriots find a business that is suitable for buying.
Let's name just a few of them:
- PRH - General Patent Registration Office. Here, in addition to application forms, you will receive advice and information on trademarks, utility designs and patents. PRH also houses a directory of businesses with contact details for their managers.
- Elu centers. In such a center, an entrepreneur can get help in solving problems that arise when setting up small and medium-sized businesses. Financing of his development and investment projects is not excluded.
- Business Finland is a government agency responsible for tourism promotion, investment, trade and innovation financing. There are 20 regional and 40 international offices of this organization in the country. They employ over 600 highly qualified experts.
- Helsinki Center in St. Petersburg. The main activity of this organization is to provide assistance to Russian entrepreneurs seeking to develop their business in the country of Suomi.
The specifics of the tax system in Finland
The taxation of this state is characterized by a high level of interest rates. There are practically no benefits here. Most of the budget is formed from taxes that are levied on citizens. The state strictly controls this process. The fact of non-payment of taxes is financially and criminally punishable.
In addition, the Finnish tax system is characterized by the following features:
- a foreigner who comes to work in the country pays taxes if the employing company is registered in Finland;
- if the company of the Finnish employer is located outside the country, the foreigner does not pay taxes;
- a company transferring profits to a head office located abroad is not subject to taxation.
Finally
Finnish companies have an excellent reputation in the international business community. Therefore, starting a business in Finland means setting the bar high from the beginning. At the same time, it should be borne in mind that it is rather difficult for small companies to exist due to fierce competition; moreover, for foreign entrepreneurs, the situation is aggravated by the presence of a language barrier. However, the perseverance of a businessman will not be wasted - with the right approach, he will receive a significant profit.
