Types of Entrepreneurship​

Finland’s entrepreneurial landscape is vibrant and diverse, offering numerous opportunities for new businesses. The country supports a wide range of entrepreneurial ventures, from sole proprietorships to complex corporate structures, each with its unique benefits and regulations. Here are the main types of entrepreneurships in Finland: ​

1. Sole Traders (Toiminimi): This is the simplest and most common form of entrepreneurship in Finland. A sole trader (or private trader) operates a business individually without forming a legal entity separate from the owner. For the Finnish Tax Office (Vero), these business owners are also called ‘’self-employed’’ or ‘’liikkeenharjoittaja’’ or ‘’ammattiharjoittaja’’ in Finnish. This type is straightforward to set up and manage, making it ideal for small-scale and low-risk ventures. It is required to file for a sole trader start-up notification with the Trade Register. The online application fee is 70 euros. Read more: PRH.FI ​
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2. Limited Liability Companies (Osakeyhtiö): LLCs are popular for businesses requiring a more structured legal framework. This type provides the benefit of limited liability, protecting personal assets from business debts. LLCs in Finland are subject to specific regulations, including mandatory registration and regular reporting. ​
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3. General Partnerships (Avoin yhtiö): This form involves at least two individuals who share ownership and management responsibilities. Partners in a general partnership share profits, losses, and liabilities. It is suitable for businesses where collaboration and shared decision-making are essential. ​
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4. Limited Partnerships (Kommandiittiyhtiö): Similar to general partnerships, but with both general and limited (silent) partners. Limited partners contribute capital and share in profits but have limited liability and minimal involvement in daily operations. This structure is beneficial for attracting investors who prefer a passive role.  ​
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5. Cooperatives (Osuuskunta): These are member-owned businesses that operate for the mutual benefit of their members. Cooperatives in Finland are common in sectors like agriculture, retail, and housing. They emphasize democratic decision-making and equitable distribution of profits. ​
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6. Associations (Yhdistys): Associations are organizations formed by a group of individuals to pursue a common goal, often non-profit in nature. In Finland, associations are easy to establish and require a minimum of three founding members. They must register with the Finnish Patent and Registration Office (PRH) and are governed by specific regulations to ensure transparency and accountability. The application handling fee is 370 euros. ​

7. Light Entrepreneurship (Kevytyrittäjyys): This unique form allows individuals to invoice clients without establishing a formal company. Light entrepreneurs use invoicing services to handle administrative tasks like taxes without having a Business ID. This form is popular for freelancers and those testing business ideas without committing to a full-scale business setup. This type of entrepreneurship is not entitled to a start-up grant (starttiraha). ​

8. Part-Time Entrepreneurship: This type of entrepreneurship allows individuals to run a business alongside their primary employment or studies. It provides flexibility and a way to test business ideas with reduced risk. Part-time entrepreneurs in Finland can benefit from simplified regulations and support services tailored to their unique needs, making it an attractive option for those not ready to commit full-time to their business. The flexibility of this business allows an individual to register as a private trader (toiminimi) or try as a light entrepreneur. It is important to note, that part-time entrepreneurs are not eligible for the start-up grant (starttiraha), as the latter is suitable for the full-time entrepreneurs. ​

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