Good to know
Good to Know
- Levi itself has no separate business registry — you incorporate through the same national PRH/YTJ system used anywhere in Finland, then simply list a Levi or Kittilä address as your registered office.
- The main 'local requirement' foreigners hit isn't a sponsor or local partner — it's that at least one board member must live in the EEA. Many foreign founders satisfy this by appointing a Finland-based accountant or professional nominee director rather than finding a business partner.
- You can own 100% of a Finnish Oy without living in Finland at all — but if you want to move to Levi/Lapland yourself and actively run the business, that's a separate Entrepreneur's Residence Permit process through Migri, not just a company-registration step.
- Since 2019 there's no minimum share capital for an Oy, so the cash barrier to incorporating is low — most of the real cost and time for foreign founders comes from notarising signatures abroad and clearing Finnish bank KYC checks, not from the PRH fee itself.
- From 1 January 2026, paper filings for limited companies are no longer accepted — everything must go through the YTJ online service, and companies must review/confirm their Trade Register details annually.
- There is no separate 'Levi' business registry — you register nationally through the Finnish Patent and Registration Office (PRH) / ytj.fi exactly as you would anywhere else in Finland; being based in Levi/Kittilä has zero effect on the tax rate or filing process.
- For a solo nomad just invoicing clients, a toiminimi (sole trader) is dramatically simpler to set up than an Oy, but remember its profit is taxed as personal income at progressive rates rather than the flat 20% corporate rate — worth modeling both ways if your income is substantial.
- If you plan to hire even one employee locally (e.g. seasonal ski-resort staff), note that both branches and sole traders can legally employ staff in Finland, so you don't necessarily need a full Oy just to hire.
- Watch the 2027 corporate tax change: profits booked in the 2026 financial year are still taxed at 20%, with the drop to 18% only applying from the 2027 tax year onward — don't assume the lower rate applies retroactively.
- As of 1 January 2026, PRH no longer accepts paper filings for limited liability company registrations — the online ytj.fi service (Finnish/Swedish interface) is mandatory, which can be a real hurdle if you don't yet have Finnish strong digital ID.
VAT Arvonlisavero
- Reduced Rates
- 13.5% on food, restaurants, accommodation, books and passenger transport (reduced from 14% as of Jan 2026); 10% on newspapers/magazines
- Standard Rate Percent
- 25.5
- Registration Threshold
- €20,000
Notes
- Below the annual turnover threshold, VAT registration is generally not required for domestic small businesses; this threshold does NOT apply to foreign entrepreneurs without a fixed establishment in Finland, who typically must register regardless of turnover.
Corporate Income Tax
- Current Rate 2026
- Flat 20% on net profit
Notes
- This rate applies to resident companies (Osakeyhtiö / Oy) on worldwide income and to Finnish permanent establishments of foreign entities on Finnish-source income only.
- The Finnish government has confirmed a reduction of the headline rate to 18% effective from the 2027 tax year; 2026 accounts are still taxed at 20%.
- Sole traders and partnerships do NOT pay this corporate rate — their business profit instead flows through to the owner's personal progressive income tax, which is covered under Visa & Legal / personal tax residency, not here.
Structure Options For A Foreigner
Unlimited personal liability for all business debts.
- Setup
- No registration fee and no minimum capital; the business legally begins once you file a notification (not a full Trade Register registration) — the fastest and cheapest route to a Finnish Business ID (Y-tunnus).
- Taxation
- Business profit is taxed as the owner's personal income (progressive rates), not at the flat corporate rate — see Visa & Legal category for personal tax-residency implications.
- Structure
- Sole trader / Toiminimi (freelancer)
- Who Its For
- Solo freelancers and very small one-person operations — the simplest way for a nomad to formally invoice in Finland.
- Practical Note
- Missing registration in the 'ennakkoperintärekisteri' (prepayment/advance-tax register) means Finnish clients must withhold tax from every payment made to you — this is easy to forget and creates cash-flow friction, so registering for it immediately is strongly advised.
Limited to the company's share capital / assets.
- Setup
- Must register with the Finnish Trade Register (PRH) via the online ytj.fi service — the company legally exists only after this registration; minimum share capital was abolished in 2019, so an Oy can be founded with €0 capital.
- Taxation
- Flat 20% corporate income tax on profits (falling to 18% from 2027); dividends distributed to the foreign owner are subject to withholding tax as above.
- Structure
- Limited liability company / Osakeyhtiö (Oy)
- Who Its For
- The default recommendation for foreign entrepreneurs planning to stay long-term, hire staff, take on investors, or simply separate personal and business liability.
- Board Requirement
- At least one ordinary board member and one deputy member must be resident in the European Economic Area (EEA); if your whole founding team is outside the EEA you must either add an EEA-resident board member or apply to PRH for a special permit/exemption.
- Typical Registration Timeframe
- Roughly 3–4 weeks in normal cases; electronic registration requires strong Finnish digital identification (bank ID or Suomi.fi), and lacking this pushes you to slower paper-based routes.
Branch of a foreign company (Sivuliike)
- Setup
- Must register with the Trade Register, supply documentation from the home country, and appoint a Finnish-based representative; the parent company's financial statements must also be filed with PRH.
- Taxation
- Taxed at the same 20% rate, but only on Finnish-source income, and carries heavier ongoing accounting/reporting obligations (accounts required both in Finland and the home country) than an Oy.
- Liability
- Not a separate legal entity — the foreign parent company bears full legal and financial liability for the branch's obligations in Finland.
- Who Its For
- A foreign company testing the Finnish/Lapland market or running a short-term project without creating a new separate legal entity.
Practical Costs
- Local Accountant Typical Monthly Fee Oy
- €149
- Local Accountant Typical Monthly Fee Sole Trader
- €89
- Note
- Because Finnish tax/company terminology is dense and mostly in Finnish/Swedish, hiring a local accountant is close to standard practice for foreign founders even for a simple toiminimi.
Jurisdiction Note
Levi is a resort village in Kittilä municipality, Lapland — there is no separate local tax regime; all corporate tax, VAT, and company-registration rules below are set at the national Finnish level (Verohallinto / PRH) and apply identically whether you incorporate in Levi, Helsinki, or anywhere else in Finland.
Filing And Payment Obligations
Filing And Payment Obligations
- Corporate tax return due 4 months after the end of the accounting period — for calendar-year filers, that's 30 April; using a professional tax advisor can extend this to end of May.
- Advance ('ennakkovero') corporate tax prepayments are made monthly through the MyTax (OmaVero) online portal, based on estimated annual profit.
- Losses may currently be carried forward up to 10 years, extending to 25 years for losses confirmed from the 2026 tax year onward; carryback of losses is not permitted.
- The loss carryforward is forfeited if more than 50% of a company's shares change ownership during the loss year — relevant if a foreign founder brings in investors or restructures.
- Dividends paid out to non-resident companies carry a 20% withholding tax, and to non-resident individuals 30%, though most of Finland's tax treaties reduce this to roughly 5–15%; EU parent companies holding at least 10% of the Finnish company's capital can qualify for 0% withholding.
Incorporation Process And Requirements
- Special Licenses
- Certain sectors (alcohol sales, private security, debt collection, real estate brokerage, travel agency operations, financial services, healthcare, energy) require additional sector licenses beyond standard Trade Register incorporation — relevant to consider for tourism/adventure-activity businesses common around Levi.
- Minimum Share Capital
- €0.00
Minimum share capital for a private limited company (Oy) was abolished on 1 July 2019; a company can be registered with €0 paid-in capital.
- Recommended Entity Type
- Private limited company (osakeyhtiö, Oy) — the standard vehicle used by foreign founders and SMEs in Finland.
- Jurisdiction Note
- Levi is a resort village within the municipality of Kittilä, Lapland. There is no separate local business registry for Levi — company incorporation is a single national process run by the Finnish Patent and Registration Office (PRH) and the Finnish Tax Administration (Vero), identical whether the registered office is in Levi/Kittilä, Rovaniemi, or Helsinki.
- Residence Permit Note For Active Founders
- A non-EU/EEA founder who wants to actively live in Finland and run the company (not just own shares remotely) generally needs an Entrepreneur's Residence Permit. Finnish Immigration Service (Migri) guidance treats someone as an entrepreneur if they hold a significant stake (commonly cited threshold: at least ~30% of a limited company) and work in a managerial role in it; the application is assessed first by the ELY Centre for business viability, then decided by Migri. The company generally needs to already be entered in the PRH Trade Register before this permit process can conclude.
Costs
- Official Online Registration Fee
- €275
Sources vary on the exact current PRH online start-up notification fee for an Oy, citing figures from €250 to €380; €275 is used here as a representative low-end figure. Paper filing (more expensive, and no longer permitted for limited companies from 1 January 2026) always costs more than online filing.
- Typical Paid Formation Agent Package
- €3,850
Illustrative fully-remote formation-agent package price (one provider quoted this, inclusive of the government registration fee); other agencies quoted anywhere from roughly €3,850 to €6,450 for full-service foreign-founder packages. Using an agent is optional, not legally required.
Non EEA Board Exemption Permit Fee
- Note
- PRH charges an additional processing fee to review a non-EEA-resident board permit application; exact current fee amount was not confirmed at the time of research — verify directly on prh.fi before budgeting.
Steps
- Choose entity type (Oy recommended) and confirm the name is available via PRH's Business Information System.
- Draft founding documents: memorandum of association, articles of association, and minutes of the founding meeting.
- Appoint the board — ensure at least one ordinary board member (and deputy) is an EEA resident, or apply to PRH for a non-resident exemption/permit.
- Open a Finnish company bank account and deposit any share capital (if the articles require one); obtain a bank confirmation of deposit — bank KYC checks are the most common delay point for foreign founders.
- File the Start-Up Notification (Y-form) online via YTJ to PRH's Trade Register and simultaneously register for the relevant tax registers (VAT, prepayment/employer registers) with Vero.
- Receive the Business ID (Y-tunnus) once PRH approves the filing.
- If a founder is outside the EEA and needs to sign documents abroad, expect to sign before a local notary with apostille certification under the Hague Convention before filing.
- If planning to live in Finland and actively run the business as a non-EU/EEA citizen, apply separately to Migri for an Entrepreneur's Residence Permit (ELY Centre reviews business viability first).
Timeline
- Non EEA Board Exemption Permit
- A PRH exemption permit for an all-non-EEA board is typically processed within about three to four weeks when required.
- Straightforward EEA Resident Filing
- Online YTJ filing with a complete, correct document set and EEA-resident signatories is typically processed within one to three business days.
- Foreign Non EEA Founder Realistic Timeline
- Plan for roughly three to six weeks end-to-end once notarisation/apostille of foreign signatures and bank KYC/account-opening delays are factored in.
Ownership Rules
- Detail
- Foreigners can fully own a Finnish company. Shareholders may be natural persons or legal entities of any nationality, there is no residency requirement for shareholders, and a minimum of one shareholder is required.
- Foreign Ownership Allowed
- Yes
Registration Body
- Name
- Finnish Patent and Registration Office (PRH) — Trade Register (Kaupparekisteri), with tax registers handled by the Finnish Tax Administration (Vero)
- Online Filing Portal
- YTJ (Business Information System) — ytj.fi
- Official Prh Foreigner Permits Page
- https://www.prh.fi/en/companiesandorganisations/ulkomaalaisluvat.html
Documents Required
- Valid passport/national ID for all shareholders and board members
- Memorandum of association and articles of association
- Minutes of the founding meeting
- Bank confirmation of share capital deposit (if applicable)
- Business plan / description of activities (especially if tied to a residence permit application)
- Apostilled, notarised signature documents for any founder signing outside the EEA
- PRH exemption permit (if the board has no EEA-resident member)
Local Partner Or Sponsor Mandate
- Type
- Board residency rule, not an ownership/equity sponsor
- Detail
- If the company has its registered office in Finland, at least one board member (and the managing director, if one is appointed) must be resident in the EEA, unless PRH grants an exemption. This is not a shareholding or profit-sharing requirement — it can be satisfied by a nominee/professional EEA-resident board member rather than a business partner.
- Exists
- Yes
- Non EEA Workaround
- A person residing outside the EEA can still serve as a board member or managing director, but if there are not enough EEA-based board members, that non-EEA person needs a special permit from PRH. Citizenship is not the deciding factor — country of permanent residence is. PRH has also granted permits to US citizens living permanently in the US under the US–Finland Treaty of Friendship, Commerce and Consular Rights.
AI-generated estimateData refreshed July 2026
Sources cited for this category
These are the sources cited in this business permits & incorporation for foreigners research for this city. Individual figures may not each trace to one of them.
- 1.prh.fi
More About Levi
Data last updated July 2026 · Verify anything important.