For a starting entrepreneur there are five different company types to choose from. In addition to these five, you have the possibility to try out your business as a light entrepreneur without a Business ID. FREE! Light entrepreneur can be a good first step, if establishing a company with a Business ID doesn't feel right for you just yet. Tax authorities have defined a light entrepreneur as a person who is self employed and works business-like without a company. There are some services that confusingly offer light entrepreneurship with Business ID, but a light entrepreneur with Business ID is a traditional entrepreneur.
Virtually there are tens of company types, but most of them are uncommon and impractical, so for simplicity we'll focus on the most common company types. Five most common company types are: Private trader, Limited liability company, General partnership, Limited partnership and Cooperative. By far the most popular ones in Finland are Limited liability company and Private trader, which make up 90 percent of all companies in Finland. You can establish a company using the YTJ's service, the prerequisites and prices differ depending on the company type. Next we'll introduce the five most common company types.
Although officially Trade name means the company's name, the name which the company does business with, regardless of the company's type. As a Private trader you are not required to do double-entry booking and financial statements. In our FREE! Entrepreneur service booking is still done double-entry as this broadens the possibilities to analyze the key figures of your trade.
With double-entry booking it's also possible to utilize services from other company types in later stages, so stay tuned! Establishing a Trade name is free and very easy: the declarations to necessary registers will be ready in a month after handing in the paper forms. Although if you have plans to scale up your business and hire employees, you might want to consider Limited liability company as your company type.
Limited liability company
Establishing a Limited liability company will cost 275 euros with electronic forms and 380 euros with paper forms. In certain cases paper forms are required, for example if your equity capital is more than 0 euros or standard articles of association is not enough for the company. Limited liability companies will suit any industry and for any size of business.
Although if your business is small or you are selling just your own expertise, it might be easier to choose a Private trader as your company type, since a Limited liability company is required to have Double-entry booking and create financial statements within 4 months after the accounting period.