Starting a business in Finland will be facilitated since 1 July, by abolishing the minimum capital requirement of € 2,500 for private Limited Liability Companies (in Finnish, Osakeyhtiö, OY)
The amendment to the Limited Liability Companies Act will be confirmed in the presentation of the President on Friday, 8 February 2019. The aim is to facilitate the pursuit of the profession and other micro and small business activities without personal responsibility by lowering the threshold to set up a corporation, said the Ministry of Justice of Finland on a press release.
The change will also facilitate the company's digital reporting and automation of registration.
In addition to private limited liability companies, the capital requirement will also be removed from housing companies. In addition, the cooperative's funding obligation is waived.
Elimination of the share capital requirement will affect about 85 percent of the limited liability companies to be formed and some of those who are considering setting up a new company, for which the second option is private entrepreneurship (in Finnish, toiminimi).
A large part of existing private limited companies may also wish to reduce their share capital in the future.