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Markus Myhrberg. Doing Business in the Nordic and Baltic Region 07.06.2013
 

Markus Myhrberg. Doing Business in the Nordic and Baltic Region 07.06.2013

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    Markus Myhrberg. Doing Business in the Nordic and Baltic Region 07.06.2013 Markus Myhrberg. Doing Business in the Nordic and Baltic Region 07.06.2013 Presentation Transcript

    • Doing Business in the Nordic and Baltic Region FINLAND Markus Myhrberg Partner, Attorney at Law LEXIA
    • Finland
    • Basic Facts about Finland Size: 390 903 km² Population: 5.4 M (18 habitants per km²) State formation date: 6 December 1917 Capital city: Helsinki Political system: parliamentary republic Official languages: Finnish, Swedish Member of the EU: since 1 January 1995 Currency: euro (€)
    • Basic Facts about Finland GDP: $266553 M in 2011 (IMF), 37th in the world ($ 36,395 per capita, 23th) Economy: One of the most open, competitive & successful economies in Europe due to political stability & sustained growth (AAA; S&P, Moody’s) Strong in: Information and clean technology, games, paper and metal industry, ship building, machinery, pharma and scientific instruments (e.g. included in the Curiosity explorer on Mars)
    • Rankings • 3#, Global competitiveness report 2012-13 (World Economic Forum) • Best business environment in the world (period 2009-2013, Economist Intelligence Unit) • The best availability of scientists and engineers in the world (WEF) • 7# Global competitiveness index 2010-12 (World Economic Forum) • Best country in the world (Newsweek, August 2010) • Best basic education in the world (PISA)
    • Finland - Strengths - • Expertise and innovation (among the EU’s innovation leaders) • Unique co-operation between education, research and industry • Great logistics and communications networks • Transparent legislation, lack of bureaucracy • IPR protection, signatory to all major international IP treaties • One of the least corrupted countries in the world • Safety, clean environment Euro as currency • Honest and straightforward people • Excellent geographical location
    • The finnish nature... The Finnish nature…
    • Finland Labour market • Highly educated workforce receptive to new technologies (e.g. vast amount of skilled IT-personnel) • Applicable collective bargaining agreements (union agreements) quite common • Increasing flexibility one of the main objectives • No minimum wage ruling in the law, but included in most of the union agreements Social system • Comprehensive social security • Several mandatory provisions for the benefit of employees •22-25% of the salary to be paid by the employer as social security, pension and other insurance costs
    • Finland - Investment possibilities - Industries • Cleantech • ICT & Games • Mining • Research, Development and Innovation • Travel • Healthcare & wellbeing • Ship building, machinery
    • Setting up a Business in Finland • The nationality of a foreigner determines which permits or registrations are needed when moving to Finland • Depending on the corporate form, a permit of the National Board of Patents and Registration may be needed (if permanent place of residence outside the EEA) • In limited company (Oy) only for the board members/CEO • Insurances and unemployment fund for entrepreneurs mandatory, mostly do not apply to foreigners living abroad • Business and organization ID  provided once the foundation of a business is recorded in the Finnish Business Information System
    • Setting up a Business in Finland Company types • limited company • sole proprietorship • partnership (general and limited) • joint venture different tax implications special permits registration procedures
    • Setting up a Business in Finland • Share capital requirements: • Private limited companies Euro 2,500 • Public limited companies Euro 80,000 • Board of Directors is mandatory • minimum one member and one alternate member. • at least one of the Board members must be EEA resident • No directors needed, a Finnish representative required in some situation • CEO has to be from the EEA • Establishment agreement between shareholders, no notary required
    • Finland - Taxation - • Corporate income tax 24,5 % (as of 1.1.2014 20 %) • Tax obligations depend on whether the company has a permanent establishment in Finland  mandatory registration in the Finnish VAT register if the foreign company has a fixed establishment in Finland  obligation to file VAT registration form in some cases even without permanent establishment, e.g. company selling goods or services to consumers  employer registration: mandatory for companies with permanent establishment in Finland for income-tax purposes the company will be treated as a Finnish payer of wages
    • Finland - Taxation - • Withholding tax on dividends 24,5,% • EEA 0% (at least 10 % ownership) • Finnish-Russian tax treaty > 12/5% (ownership 30%, investment more than USD100,000) • Interests and royalties 0% • Foreign natural persons in general > 30% • Tax treaties > 0% (if the company has paid) • Sale of shares made by foreign companies in most cases tax-free under Finnish taxation • Quite straightforward taxation system, limited possibilities to deduction in the company taxation • R&D deduction based on the paid salaries 15-400K • No results needed… • IPR Box to be introduced (royalties -50%)
    • Finland - Working and Residence Permits - • Residence permit is required for foreigners staying in Finland for 90 days or longer (does not apply on EU/EEA citizens and Nordic countries) • Residence permit for a self-employed person also required in order to engage in trade in Finland • Applying residence permit, permit grounds, temporary/permanent residence permit • Residence permit for an employed person: usually granted for a specific occupational position/sector • Researchers, executives, concultants, educational work etc.
    • Thank you! Markus Myhrberg Partner, Attorney Mobile: +358 (0)40 505 5343 markus.myhrberg@lexia.fi