Starting Your Business

Ready to take the first step

The journey of founding a company is filled with excitement and doubt, and you should prepare yourself well for that. Here you can find the stories on what triggered a handful of young Scandinavian entrepreneurs to follow their dream. Learn how much work you need to put into it, how it could affect your private economy and how to get started on the right track, from day one. 

Also, find out why, how and where to get your business registered. And last but not least, learn how important it is to decide what type of company you want to start already in the beginning of your journey. 

If you are ready, now is the time to make your dream come true.

Balancing life & economy

If you want to know how starting your own business will affect your private economy and what you need to consider the interview with Nordea Business Advisor Per will be an educational read for you.

How to register your dream business

Business ID is for businesses and organizations and it’s issued by the Finnish Patent and Registration Office or the Tax Administration. New company will receive the Business ID immediately after the notification of establishment has been registered to the joint database of the Finnish Patent and Registration Office and the Tax Administration that is called the Business information system.    

You should consider what company form suits you and your business the most before delivering the notification. Different company forms are applied with different kind of responsibilities and obligations. 

If your trade or business activity changes for some reason, you can always change the company form to match your current situation better. Some folks start as a part-time entrepreneur, others start their business as a hobby and still keep their day jobs. This way they can try if there’s actually demand for their products or services on the market. In this occasion it’s enough to just register as a sole trader. When the income increases and the business evolves, it’s possible to change your type of business to something else.  

Get familiar with different types of businesses before you register your own company. Notice that it’s chargeable to register your company in the Finnish Patent and Registration Office’s trade register. 

Business type overview

Sole trader

Personally owned small business

A personally owned small business is characterized by:

  • Only 1 owner
  • The owner represents the company
  • No employees
  • No export or import from countries outside the EU.

Pros
No economic requirements for being allowed to start. No legal requirements when it comes to accounting or making accounts public.

Cons
Owner is personally liable for the business debts (private assets such as your private house, car etc. could be seized to cover the debts). You cannot charge VAT or deduct VAT from purchased items.

Advice
Your turnover must be below 50,000 Dkr. a year, but you still need to pay taxes on your profits. Consider this type of company if this is only a part-time or hobby business where you expect a limited income (such as part-time consultant, lecturer, designer, photographer etc.) or if you have no plans of expanding.

Limited liability company
Limited partnership
General partnership
Co-operative

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Competition is not a bad thing

Learn, why competition is not necessarily a bad thing. And what makes an investor decide to invest in a newly started company, when the competition in the market is fierce?