Finland is one of the best countries in Europe for entrepreneurs, because of its stable economy, supportive business environment, and high-quality infrastructure. However, entrepreneurs must consider the cost of starting a new business in Finland. From business registration fees to office space and operational expenses, understanding these costs can help you plan your startup budget effectively.
This article will provide a detailed breakdown of the costs associated with starting a new business in Finland, covering registration fees, taxation, operational expenses, and financing options.
- Business Registration Costs
The first step when starting a business in Finland would be to register the company to the Finnish Trade Register or to the Finnish Patent and Registration Office (PRH). The cost for registration depends on the type of business structure selected:
Sole Proprietorship (Toiminimi) – €60 (online) or €115 (paper application)
Limited Liability Company (Osakeyhtiö – Oy) – €240 (online) or €380 (paper application)
General Partnership (Avoin yhtiö – Ay) – €240 (online) or €380 (paper application)
Limited Partnership (Kommandiittiyhtiö – Ky) – €240 (online) or €380 (paper application)
It is now easier and cheaper to establish an Oy, since the minimum share capital requirement has been abolished for a limited liability company (Oy).
- Licensing and Permits
You may have to acquire some additional licenses or permits, depending on your industry. These costs vary:
Food & Beverage Business (restaurant, café, catering) – €300–€1,000 for health and safety permits
Construction & Real Estate – €500–€2,000 for building permits and licenses
Healthcare & Pharmaceutical Business – €1,000+ for regulatory compliance and inspections
Business Finland and local authorities are good places to check regarding which permits are required and their potential costs for your business sector. Read this for reference.
- Office Space and Equipment
Finland is a very expensive place to rent office or retail space in particular in the major cities such a Helsinki, Espoo and Tampere. The average monthly costs are:
Small office space (10–20m²) – €200–€800 per month
Retail space (city center) – €1,000–€5,000 per month
Coworking spaces – €100–€400 per month per desk
Reduces initial costs if you have remote job, or run a digital business; providing you would be able to work from home offices or coworking spaces.
- Business Insurance and Legal Costs
Businesses owned by entrepreneurs in Finland require different types of insurance. Common insurance costs include:
General liability insurance – €300–€1,500 per year
Employee insurance (mandatory for businesses with employees) – €500–€2,000 per year
Property insurance (for physical office or retail spaces) – €500–€3,000 per year
Additionally, you will have to pay legal costs for consulting a lawyer on contracts and business agreements from €100 to €300 an hour.
- Taxes and Employer Costs
Taxes are an important safeguard of all business in Finland since all companies operating in the country have to adhere to these main laws. The key tax expenses include:
Corporate tax – 20% on profits
Value-added tax (VAT) – 24% (or 14% for food services, 10% for certain goods and services)
Employer contributions – If you hire employees, you must pay around 20–25% of their salary in social security, pension, and insurance contributions.
For instance, if an employee receives €3000 on a monthly basis, then the extra expenses an employer is likely to incur would total to €600 to € 750 per month.
- Marketing and Branding Expenses
Any aims to attract the client base, you will require a marketing budget. Some of the basic marketing costs include the marketing cost estimate for subcontracting is as follows:
Website development – €500–€3,000 (or €20–€100/month for website hosting)
Social media advertising – €100–€1,000 per month
Business cards, flyers, and branding – €200–€1,500
Cheap marketing strategies that could be implemented by most start-ups are social media marketing, search engine marketing, and content marketing.
- Initial Working Capital and Miscellaneous Costs
Due to this, you require working capital for managing your business in the initial months as follows:
Inventory and supplies – €1,000–€10,000 (varies by industry)
Accounting services – €50–€300 per month for bookkeeping
Utility bills (electricity, water, internet) – €100–€500 per month
Some of the important financial tips that should be followed when starting a business are to ensure that there is enough operating capital, it is advised to have operating capital for between three to six months.
Total Estimated Cost of Starting a Business in Finland
- Business registration €60–€380
- Licensing & permits €300–€2,000+
- Office space (monthly) €200–€5,000+
- Business insurance €300–€3,000+ per year
- Employee costs (if hiring) 20–25% of salary
- Marketing & branding €500–€3,000+
- Initial working capital €1,000–€10,000+
- Accounting & legal fees €50–€300 per month
How much does it cost to start a business in Finland? The total cost depends on the business type, location, and initial investment. On average, a small business startup in Finland may require anywhere from €5,000 to €50,000 to launch successfully.
Conclusion
Starting a business in Finland requires careful financial planning, but the country’s supportive business environment, strong infrastructure, and government funding programs make it a great place for entrepreneurs. While costs such as registration, office rent, marketing, and employee expenses add up, strategic budgeting and available financing options can help startups succeed.
For those planning to launch a business in Finland, researching industry-specific expenses and exploring funding opportunities can make the process smoother and more cost-effective.
