Why Set Up Business in Finland?
Finland has made its mark in the world map despite being a small nation by population. Home to many great businesses and corporate brands, here are the few reasons why we believe Finland helps businesses to grow by leaps and bounds.
- International companies are warmly welcomed to Finland. They can access the same benefits as Finnish companies. Finns are a pragmatic people who like to get down to business right away. Opening a legal entity takes only a couple of weeks.
- Access to exceptional talent and established infrastructure: Finland is Europe’s leading innovation centre and home to some of the best technology and engineering companies like Nokia, Kone, Wartsila, Rovio and Supercell. Finland’s good education system ensures that you have access to an amazing supply of talent in the longer run.
- High corporate and governance ethics: Finland ranks among the least corrupt nations in the world, and have the world’s top 25 best government. Based on the Legatum Index Government Ranking, Finland ranks number 5 after Switzerland, New Zealand, Denmark, and Sweden. No mountains of paperwork or never-ending red tape are expected in Finland.
- Low corporate tax: Finland also has the lowest corporate tax in the EU at 20%. For businesses, taxes comprise a corporation tax (profit tax) and a real estate tax. Other taxes consist of an assets transfer tax (formerly stamp duty) and a withholding tax. The employers are also required to make a social security contribution. Value added tax (VAT) VAT is an indirect tax assessed as a percentage of the value of all goods and services unless specifically exempted.
- Small market, International expansion: A small market like Finland with 5 million people is an ideal place to test a product/service, fine tune it, expand to other advanced neighbouring countries, before preparing for a global expansion.
What else you should know about Finland
How Brexit affects Finnish economy
There are mixed reactions on the effects of Brexit, which impacts the Finnish economy via the weakening British economy along with other global repercussions. Optimists believe that the effects on the Finnish economy seem to be to some extent more positive due to the improved price competitiveness born by adjustments in the effective exchange rates and, also, a favourable combination of relevant trade partners, including Russia and China.
Economists feel that the Finnish export industries are able to win new market shares from the UK industries. This simulation result concerning the long-run development looks very optimistic for Finland. However, it does not take into account the possible short-term negative effects of Brexit on the EU integration process that may disrupt the single market.
A prospect for Finland’s Euro exit?
The prospect of Finland’s exit from Euro is not expected to happen in the foreseeable future. In a Reuters report last June, Kaj Turunen, a Finns party MP and chairman of the parliament’s commerce committee, said this was not the time for Finland to leave the euro zone.
Meanwhile, Finland’s foreign minister, eurosceptic Finns party leader Timo Soini, said one must respect the result of Britain’s EU referendum.