Starting Micro-entrepreneur Business in Finland – 7 Points to Take into Account

Image of a start-up meeting

We have made a brief and practical list of things you need to think through if you have decided to start a business in Finland.

  1. Select your business form
    • The options are basically to operate as a sole trader called “toiminimi” or to register a limited company called “osakeyhtiö”. There are also other less common business forms.
    • The registration process depends on which business form you selected.
    • Be sure to register in prepayment register (“ennakkoperintärekisteri”) and also in VAT register if you know your business is VAT liable. The employer registration is not recommended if you are not employing other people on a permanent basis.
  2. Organize the accounting
    • Basic bookkeeping is an essential part of the accounting and financial management. You should start co-operation with an accounting agency which utilises digital tools to keep your bookkeeping affordable and effortless.
    • Taxation is based on the books and can be handled by the same accounting agency electronically when you have given the appropriate authorization.
    • Invoicing software is very important tool if your sales are mainly based on billing the customers. Ask your accountant contact for help when choosing the software.
    • If you’re planning to employ other people it makes sense to choose an accounting company who can also offer payroll services.
  3. Open a business bank account
    • You have an accounting liability concerning your business. As a part of that it is important to keep the private transactions and business transactions apart from each other.
    • Choose the bank group and appropriate bank services based on your accountant’s advice.
  4. Make the insurance agreements of at least the obligatory pension insurance (YEL)
    • Your accountant might be able to recommend you an appropriate insurance company.
    • If you will be employing you need also other obligatory insurances
    • As a part of risk management it might be wise to consider other voluntary insurances.
  5. Have a look if you’re entitled to the start-up grant
    • More information at the TE Office
    • Note! If you apply for the start-up grant you cannot start your business before the application is handled.
  6. Be sure of other possible permits
    • Some entrepreneurs see Finland as a bureaucratic country, some don’t. It depends on the line of business you are in. Find more information on the necessary permits especially if you are, for example, in the restaurant business.
  7. Start
    • Remember that the most important thing is to know what you sell and to find customers! You also need to keep your archives in order and respect the deadlines of invoices. There is support available for business administration but you have to be careful and buy only affordable services.
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Migrant entrepreneurs in Europe

More than a million refugees arrived in Europe last year and this great migration has continued this year. There are also millions of migrants in European countries who are not refugees instead they have voluntarily moved in their current country. The main reasons are usually work or personal relationships.

The lack of work is the most common reason for the immigration problems. There are a huge amount of people who are willing to work and adapt in their new country but they cannot find work. They might also possess expertise which would meet the local demand but the local employers do not have courage to employ them due to limited language skills, cultural differences or just some non-specific prejudice.

European Commission has also realised the potential of migrant entrepreneurs. They are one of the main target groups when promoting entrepreneurship:

Entrepreneurship is a powerful driver of economic growth and job creation: it creates new companies and jobs, opens up new markets, and nurtures new skills and capabilities.

The European Commission aims to support an environment attractive to all forms of entrepreneurship, where also business support services reach all potential entrepreneurs, including those from more vulnerable groups, with the aim to make the EU in its entirety stronger and more cohesive.

Within the EU, migrants represent an important pool of potential entrepreneurs, but can face, as other more vulnerable groups, specific legal, cultural and linguistic obstacles. These issues need to be addressed in full to give support equitable to that received by all other entrepreneurial groups. “

Migrants have been included in EU’s Entrepreneurship 2020 Action Plan.

The entrepreneurship percentage of migrants is higher than with the EU citizens with non-migrant background. The total amount of micro enterprises in EU is about 21 million. According to the estimates made in Digibalance, over 3 million of them are run by migrant entrepreneurs. Digibalance Limited is actively promoting migrant entrepreneurship in all the EU countries where its AutoAccount bookkeeping service is available.

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