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Business Legislation in Finland

Key Laws Governing Business Activities and Employment Relations

Finnish Legislation

Business activities in Finland are governed by a comprehensive legal framework that regulates the establishment, operation, and dissolution of businesses.

This section provides an overview of the key laws governing business activities, employment relations, and other legal matters that should be taken into account when establishing a company and preparing a business plan.

Finland offers excellent opportunities for business and entrepreneurship.

Contents

  1. Starting a Business in Finland: Legal Framework
  2. Key Laws for Entrepreneurs
  3. Finnish Employment Legislation
  4. Legal Considerations in a Business Plan

Starting a Business in Finland: Legal Framework

When preparing a business plan, one of its key sections should be an analysis of the legislation governing the future company's activities. In Finland, business operations are regulated by a wide range of laws, some of which apply to all companies, while others apply only to specific types of businesses.

Some legal requirements depend on the industry in which the company operates, while many rules apply to all entrepreneurs. Particular attention should be paid to choosing the appropriate legal form of the business, such as a sole trader (toiminimi, tmi or yksityisliike), a private limited company (osakeyhtiö), a cooperative (osuuskunta), a limited partnership (kommandiittiyhtiö), a general partnership (avoin yhtiö), and others. Each legal form has its own characteristics, so when preparing a business plan it is important to consider the legislation governing the chosen legal entity.

Certain industries are subject to additional legal requirements, which may include obtaining licences, permits, or complying with other statutory obligations.

  • Social services and healthcare
  • Food industry
  • Plumbing services (drinking water supply, sewerage and water systems) and electrical installation work
  • Handling of chemicals
  • Water supply and waste management

Before registering a company, it is advisable to check whether any specific legal requirements apply to your chosen business activity.

Key Laws for Entrepreneurs

Business activities in Finland are governed by a wide range of laws regulating company registration, accounting, taxation, as well as the rights and obligations of entrepreneurs. Below are the main legislative acts that apply to most businesses regardless of their industry.

Finnish Employment Legislation

Finnish employment legislation regulates the relationship between employers and employees, including the conclusion and termination of employment contracts, working hours, annual leave, occupational safety and health, collective agreements, and the protection of employees' rights. Below are the key laws governing employment relationships in Finland.

Legal Considerations in a Business Plan

When preparing a business plan, it is important to identify in advance which legal requirements apply to your chosen business activity. This will help you select the appropriate legal form of the company, determine whether licences or permits are required, and understand the employer's obligations as well as the key requirements of employment and tax legislation before registering the company and starting business operations.

When developing a business plan, consider the following questions:

  • Which laws regulate your business activity?
  • Which laws and regulations are most important for your business?
  • Are any licences, permits, or mandatory notifications required for your chosen business activity?
  • Which employment law requirements should you take into account when hiring employees?

The earlier you take legal requirements into account when preparing your business plan, the easier it will be to avoid mistakes when registering your company and organising its future operations.

Further information is available in the section "Accounting and Tax Legislation in Finland"

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