Business in Finland for Russians - top ideas and tips for organizing

Despite the differences in culture, northern Finland is much closer than it seems. This country has a fairly large percentage of the Russian-speaking population, which could be another argument for Russians to start a business there. We will talk about the pros and cons of entrepreneurship, the secrets of obtaining a visa and the procedure for successful business immigration to Finland in this article.

Business climate

A big plus for emigrants in the country is political stability, lack of bureaucracy, open taxes and economy. Entrepreneurs respond to well-established relationships between businessmen and the country. The downside is significant taxes.

Attractive and in-demand industries: electric power, construction, industry, metalworking, services.

The state itself does not provide subsidies, so they must be sought in European countries.

In Finland, you can count on benefits if you are going to create your own business in the field of shipowners, metalworking, and you are also exempt from refunding import duties and VAT on exports. Sometimes the government pays up to 30% of all costs if you develop industry.

Problems of the first years

If anyone has managed to create a lot of problems in Finland, it’s us. There were enough difficulties. Some were quite large-scale, others were quite minor.

Jokers at customs

To open a store, it was necessary to bring commercial equipment and goods from Russia. We bought the product from the official representative office of the brand in Russia, which purchased it in Europe - in fact, this is re-export, which means there is no need to pay duties.

The equipment was also produced in Europe. Mostly it was wooden and metal furniture. Used wood and metal equipment is not subject to duties.

We filled out the declaration. I went to Finland to prepare the premises, and the young man and his friend were supposed to bring equipment and things. They took a van and a trailer, loaded everything, tied it up with ropes, and in the morning they went to customs to go through control without queuing.

At five in the morning a customs officer called me and told me in English with a Finnish accent that the equipment was not covered and customs could not let it through.

- So what should we do? Can I come and bring the tension straps?

- Yes, sure.

- How much time do I have?

- One hour.

In a panic, I began to think: it’s five in the morning, I need to get up, get dressed, take a car, find a gas station with a 24-hour store, buy zip ties there, refuel and go to the border.

- You know, I won’t have time.

- Yes, I'm kidding! We'll miss the van. You can return the trailer with the straps whenever you want.

Such jokes. The guys arrived, unloaded the van, we bought belts and went to pick up the trailer. At the border we received a fine of €84 for an incorrect tent, took the trailer and drove to Kajaani.

Having driven quite a bit, we heard the sounds of a pursuing siren. Then we saw that two customs service cars were following us. They stopped us and asked us to turn around. It turned out that they forgot to give us a declaration with a stamp on the import of goods. The employees handed me the document, wished me a safe journey and let me go.

The investor “caused problems”

To replenish working capital, we needed an investor - our savings might not be enough. We found him through an agency and he turned out to be the son of a very rich local family. He asked for a larger stake in the company and a separate main bank account. We had no choice, and we agreed.

After signing the agreement, we opened the store. New items were purchased from the Finnish representative office of the brand. Our investor often disappeared, did not fulfill his obligations and periodically put forward less than adequate demands.

After working for a couple of months, we got used to it, found a more reliable person, and terminated the contract with the previous investor. We signed all the necessary documents for this and sent them to the patent and registration service. I wrote and called all the contractors I knew. She reported that the composition of the company had changed and this person was no longer related to us. This happened in October 2014.

In mid-December of the same year, we received a call from a computer company and asked to confirm an order for €54 thousand. It turned out that our former investor placed an order overnight, indicating us as the payer and himself as the recipient. We canceled everything, and the company manager reported fraud to the police. Then everything worked out for this guy - he said that he knew nothing about it and he was simply set up. It's time to open a case against him.

At the end of March 2020, we changed our mobile operator. Before our vacation, we decided to find out whether roaming would work. We came for a consultation and found out that our company had to pay the mobile operator for several phones.

While still among the founders, the “investor” registered an account in the online store of this operator, which he did not inform anyone about. And in December 2014, he ordered several cell phones to his home address, appointing us as payers.

We contacted the police. During the investigation, the “investor” wrote to me several times with nationalistic insults on Facebook. I didn’t answer, but I took screenshots and took them to the police. I had to block him several times, but he bypassed the blocks and wrote again.

This continued until I had enough messages to get a restraining order. The prosecutor is in charge of issuing them. He advised waiting for another message and applying for an injunction. After this the insults stopped.

The first court hearing took place in October 2020. It turned out that the comrade committed 32 crimes, which were combined into one proceeding. In addition to our three episodes (fraud, attempted fraud and insults), he stole several bicycles, stole bank codes, stalked several ladies and sold all the phones over the Internet several times without sending them to anyone.

The defense tried to prove that we ourselves were to blame because we did not notify the patent and registration service. Due to bureaucratic delays, changes in the board of directors were recorded only in February 2020.

We insisted that the investor was obliged to notify all members of the board of directors about registration in the online store and the intention to place an order, or better yet, to convene a meeting and draw up appropriate minutes, which was not done. This means this is pure fraud.

We were allowed not to come to the second meeting. For missing a day of work, the average salary in the region was reimbursed - about €80 per person. This is taking into account that the store had to be closed for the whole day. The court sentenced the accused to one year of suspended imprisonment and compensation for damages to the victims. The amount of compensation for moral damages for insults was €500. In Finland, crimes without harm to the life and health of people are punished quite leniently.

Copyright

There was music playing in our store: internet radio and Spotify. In the first week of work, people from Teosto (Author's Music Association) and Gramex (Centre for the Promotion of Musical Performing Arts) came to us and told us that we had to pay for music in the room.

For stores with an area of up to 120 square meters, the royalties were approximately €100 per year to each company (for licenses and for reproduction). We concluded an agreement and paid our bills regularly. When the store closed, it turned out that these organizations could not be notified after the fact, so they had to pay bills issued six months in advance.

Workers

We decided to hire staff in Finland. We submitted an ad and received about a hundred resumes within a week. It was very difficult to choose. As a result, a young boy who had work experience and was well versed in the specifics of the brand was invited to a permanent position.

Every sector of the economy has a workers' union. It determines minimum wages. In 2014, for the province, the salary of a salesperson working 37 hours a week could not be less than €1,680. Fortunately, the boy was provided with palkkatuki - monetary compensation from the employment service, covering 80% of the actually accrued wages.

The employee worked until the winter, then left for his old seasonal job. And we exhaled - we might not have been able to pay three salaries, pensions and social contributions for everyone. It is impossible to hire an infinite number of people for practice - you need to maintain proportions between hired employees and interns. Then we decided to work exclusively ourselves.

Shoplifting

Once my sister came to see me, and I left the young man alone in the store for one hour - I went to meet and accommodate the guests. During this time, a couple of teenagers entered the store under the influence of drugs. The boy took a few things and went to the fitting room. Then he went out, hung almost everything back and headed out. The young man noticed that he was taking more things, and from under the sleeve of his jacket a piece of bright green fabric was visible.

Upon my return, I found glass scattered on the floor, security, and a young man with a bloody hand. It turns out that when he tried to detain the thief, he bit him and broke a frame with shares. The police arrived quickly. The officers carried out an interrogation, took out a torn anti-theft element from the ventilation shaft, and took the boy to the department.

Later, a report came that there was nothing to take from the thief, except for tests. He was assigned community service. No more suspicious persons came to our store. Apparently, word got around that we know how to call the police.

First refusal to extend a residence permit

Our first stay permits - visas as we call them - were expiring at the beginning of August 2020. We collected the documents and submitted an application for extension. But instead of the usual letter from the labor office, we received a call from the police.

We have attached income certificates only for seven months of 2020 - as prepared by the accountant. However, the employment service considered that we must confirm income from May 2014, that is, from the moment we submitted documents to register the company.

For one working adult, the minimum income per month should be €1,164; ours came out to just under €800. The allowed income for a family is €1,700, but at that time we were not yet married, and cohabitation is taken into account only after two years.

We were given a month to appeal. We contacted a lawyer. He said that our case is very simple. I requested a salary statement and wrote an answer that, firstly, it should be calculated from August 2014, and not from May; and secondly, here are the salary certificates.

We could write it ourselves. But they thought that the word of a Finnish lawyer would be more significant. The trial took place in absentia and made a decision in our favor. We received extended visas in mid-November 2020 and did not make such mistakes again.

Closing the store

The grace period for the lease ended in January 2020. Then the euro rose again, problems with refugees began and the number of tourists decreased. The shopping center was empty. Rent at the new rate was unprofitable, and we decided to move out.

The contract was concluded for three years. The landlord calculated the penalty slightly more than the amount of the deposit. We agreed on a small monthly payment and went our separate ways.

How to open a business in Finland for Russians

For many entrepreneurs, Finland may seem like a paradise where everything is safe - from the environment to the political and economic situation. The standard of living in the country, which is also a member of the European Union, is really high. But along with the advantages, there are also pitfalls; a businessman planning to open his own business in Finland should remember them.

It is important

Only a resident of the European Union, a citizen with a residence permit in this country, or an entrepreneur whose co-founder is a local resident can open a company in Finland.

Before drawing up a business plan, you should carefully study Finnish legislation, which differs significantly from Russian legislation. Difficulties may arise in understanding some of the nuances associated with fulfilling contractual obligations.

The Finnish government willingly supports small and medium-sized entrepreneurs. The country has a developed system of subsidizing start-up businessmen.

This is interesting

If a citizen planning to open a company in Finland has no other sources of income, he can count on payments from the state, the so-called start-up money. Such subsidies for the personal needs of the entrepreneur are subject to tax.

Businessmen can also count on financing their business through the Finnvera state fund. If the fund’s experts consider the newly formed business to be promising, they will approve the company’s loan application.

Buying an existing business and starting from scratch

Most often, our compatriots who decide to do business in Finland tend to open their own companies.

An indispensable condition for the implementation of plans are 2 factors:

residence permit;
Social Security number.

It is equally important to take into account that for successful registration of a company, the board must include one person with “permanent residence” status in the European Union. He may not live in Finland, but he can come once a year and study reports on the organization’s activities.

The state provides support to entrepreneurs at different levels:

Information support is provided by regional development agencies - they provide free consultations, help in finding partners and more;
Financial support can be requested in the form of start-up money, which will be paid to the entrepreneur while his business is being established;
Lending to successful companies through the state fund Finnvera.

Setting up your own business often takes 6-9 months. Some foreign entrepreneurs have to wait up to a year for registration.

Against this background, buying a business looks quite attractive. The process itself is extremely simple, but also often takes up to six months. To complete a transaction, a foreigner must meet the same conditions as for opening a company: residence permit and social insurance.

What business options in Finland are most common among Russian immigrants?

Most Russian migrants prefer to occupy well-known niches:

Trade;
Services sector;
Public catering;
Tourist activities.

If the interests of entrepreneurs lie in the listed areas, then it is best to think about buying an already established business.

The cost of such a purchase will depend on the field of activity:

The price for a pizzeria starts at $20,000;
The cafe will cost more – from $30,000;
A successful travel company will cost the new owner approximately $350,000.

The payback on such a business is quite high, since the standard of living in Finland is one of the highest in Europe. An entrepreneur can count on profits of tens of thousands of dollars a year.

Finland is also interested in IT technologies: various startups in this area have a great future. For such projects, investors are easily found who are willing to invest up to $50,000 in the development of a young company.

Business ideas with minimal investment

To open a company, a foreigner in Finland must have at least $2,500. But if a migrant does not have such an impressive amount, then he can try to start his activity with minimal investments.

Suitable for this:

Delivery of goods from Russia (the main costs will go to renting a warehouse);
Coaching (there are special centers in the country where anyone can freely teach anything);
Children's clubs (this service is in demand among Russian tourists and migrants living in Finland).

Real examples

You can only understand how to build a business through your own experience. But still, it would not be amiss to study the experience of compatriots who are well acquainted with Finnish realities first-hand.

Dmitry Ivanov, technical director of Connax, entered the Finnish market about 2 years ago and sees great prospects here. Here's what he writes: “Our main idea was to ensure the security of data transmission over the Internet. Before arriving in Finland, we spent 2 years developing the product and another 2 years implementing it in our homeland. We were invited to the country as a foreign startup, which made registering a company and finding investors much easier. Now we are receiving a large number of proposals and are preparing to “blow up” the information technology market.”

Olga has her own story: “I run an eco-products and vitamins store. It was difficult at first - Finns don’t like new things, and therefore will never go to a store that has been open for less than 2-3 years. I had to do a lot differently than at home: conduct business, serve clients, maintain a conversation. For locals, attitude is very important - for this reason they will go shopping in the same place. I don’t have a big profit yet, but I’ve already turned a profit.”

Forms of organization

When starting a business, you will need to choose the legal form of your company. The decision is influenced by the type of activity, the need for authorized capital, taxation, and the number of founders.

What are there

Individual (private) entrepreneurship: you make decisions and are responsible for all the actions of the company. This is an expensive way to immigrate because you will have to recruit workers, invest your own money and respond with personal property.
Joint stock company: registration requires an individual or legal entity, as well as an authorized capital of 2,500 euros. By choosing this form, you can distribute shares and dividends. This method is most often used for business immigration.
Open Partnership: This will require 2 or more people who sign a joint agreement and have equal rights and personal responsibility for the firm's decisions and debts.
Team company: the option is very similar to the previous one, but there are several members of the company who do not have voting rights (depositors, investors, for example).
Cooperative: it is opened by several (from 3) individuals who have the right to vote, but, unlike an open partnership, are liable only to the extent of the contribution made to the authorized capital.

Taxation system in Finland

Understanding the nuances of taxation in Suomi is quite simple:

Income tax is 20% of the amount of income shown in the financial statements. Enterprises engaged in food production
animal feed and those providing restaurant services pay tax at a reduced rate of 14%. Companies selling medicines, books or tickets to theaters, cinema, concerts pay a mandatory payment rate of -10%.
Corporate income tax of 24.5% is paid by LLCs, funds, cooperatives belonging to the category - a separate taxpayer.
Personal income tax (salaries) – 31.75%.
The amount of municipal tax for individuals depends on the district and varies between 16.2-22.5%.
VAT rate is 24%. Companies that provide services or sell goods outside Finland are exempt from payment.

Profit from the activities of the enterprise is reflected in the financial statements, which are submitted annually to the relevant authorities.

Opening a company in Finland: from registration to first profit

The minimum amount of authorized capital, depending on the form of ownership, can range from 2.5 thousand to 8 thousand euros. In addition to the start-up capital, you will need to pay a state fee when opening a company - 300 euros.

In Finland, the following types of organizational structures are possible: sole proprietorship, limited liability company, limited liability company, partnership and cooperative. If you have decided on the form of the enterprise that you plan to open, then you need to familiarize yourself with the procedure for registering a company.

Business incubators are ready to provide their consulting services to aspiring businessmen. An entrepreneur can also receive relevant instructions in English on the website of the Finnish patent and registration office, where he must ultimately present a package of documents.

The set of papers required to register a company is standard, it includes:

copy of the founder's passport;
a unique name for your company;
description of the planned activities of the company;
list of the composition of the Management Board (for a joint stock company).

To conduct business in Finland, in addition to a residence permit, you will also need a social security number and a permit to engage in commercial activities in the country, obtained from the Ministry of Trade and Industry.

An important factor that affects the final profit is the taxation system. In Finland, it is close to perfection; taxes here can be called gentle, but the state strictly monitors their payment. Therefore, in order to avoid financial shortcomings, it is necessary to hire a professional accountant, preferably of local origin.

Advice for Finnish business immigrants and examples of unsuccessful attempts at doing business by Russians in Finland

Entrepreneurs with extensive experience in doing business in Finland advise new businessmen to take into account the following nuances:

Learning a language is the basis for success;
Seeking advice from specialized centers is free and effective help;
According to the business plan, officials always ask the entrepreneur a lot of questions, so it must be carefully worked out;
There are few free niches for business in the country, which means competition is very high.

Our compatriots do not always succeed in Finland. For example, Artem Danilyants twice started his own business related to information technology. The last time the business ended up with debts to staff and the tax authorities, combined with deep depression.

Things are not going too well for Alena Syrova in Finland either. Her first fish store went bankrupt very quickly - the authorities did not give a loan for it, and the girl herself could not cope. The second idea – a children’s clothing store – is still being developed by Alena’s family. But they only dream of profit, since the locals don’t come here.

Finns are very conservative by nature and do not accept anything new. For several years, the store has not even broken even, but the girl does not give up and continues to believe in her luck.

Almost every migrant can start a business in Finland, but making it profitable is much more difficult. This requires not only efficiency and impressive start-up capital, but a creative idea that the Finns themselves can appreciate.

Finnish business support programs

To start your own business you need to have capital. Additional funding from the state partially helps in the first stages to make doing business easier. Help can be free of charge or on credit.

The first option is called Startup Funds, which are issued by the Bureau of Employment and Economic Development for 12 months. You can get them if:

you have enough skills and resources to open a business;
the business plan seemed profitable to experts;
money is needed for subsistence;
entrepreneurship will be the main activity.

The second option involves issuing loans. It is issued by Finnvera, an organization that issues loans for start-ups or existing businesses. In this case, as in the previous case, it is necessary to prove its profitability, but does not have financing now.

Consultations for everyone

Entrepreneurship in Finland exists mainly under the control and support of government agencies. Utilities and municipal services also take an active part in building businesses in Finnish territory. Every aspiring entrepreneur can receive free advice, even if he is not a citizen of Finland and plans not to live there, but only to earn money.

Everyone has the right to take courses on entrepreneurship in this country. Moreover, for convenience, the government has established day and evening courses so that a person can study without harm to work and other matters. In order for a person to be enrolled in courses, it is enough to stand at the labor exchange in Finland and be officially listed as unemployed. Even those who already have their own business project study there, but they at least develop in theory.

The government also helps initially from a financial point of view. Let's consider all financing models:

start-up capital. This is a kind of financial assistance to budding entrepreneurs. Money is allocated if a person, in addition to benefits, has no other cash injections. This start-up capital is subject to taxes, and you can apply for it at the Entrepreneurship and Labor Center;
There is also a public investment fund called Finnvera. This organization provides loans to companies that have dynamic development. The size of the loan is determined by the capital of the enterprise. The larger it is, the higher the amount you can borrow. Own capital must be at least 30% of the loan amount. Similar loans are also issued to foreign citizens if they live permanently in Finland and are trying to build their own business;
You can also contact a commercial bank. A foreigner will be accepted there and will consider a loan application only if he has a social security number and an account has been opened with this bank, which has a history of transactions. If the citizen's company is not registered in the Finnish centralized register, the loan will be refused;
There are also business “incubators”. Through them you can also receive financial assistance, but only if the enterprise is registered and there are interesting ideas and innovative proposals;
you can submit an application to the national innovation fund called Tekes or to the Invention Fund.

If a citizen has a really interesting proposal, or his small business wants to develop, it is enough to collect all the documents and have the company registered. Whether a foreigner or a native Finnish resident submits documents will no longer matter.

Buy a business in Finland: advantages of buying a ready-made company

The country's government does not make much distinction between residents and non-residents when it comes to opening a new enterprise. It is important to comply with all laws and you can make a profit.

Before concluding a purchase and sale agreement, it is important to clarify several points:

Why is the company being sold? It’s one thing if the former owner decided to retire due to age or health reasons. Another - if a store or restaurant does not make a profit due to an unsuccessful location or ineffective management.
Business price. A cafeteria in Helsinki will cost 10 or even 100 times more than a similar establishment in the outback. But the profit will be different.
What does the company do? It is quite possible that the owner tried to enter the long-divided market, and nothing worked out for him.
Profit. If in Russia everything is measured in hundreds of percent, then here 8-10% per annum is considered an excellent income. This is how much money comes from, in particular, renting out residential or commercial real estate. One cannot dream of a return on investment in a year or two. Ideally, a business pays for itself in 10-15 years.
Only a citizen of Finland, a person who has received permanent residence or a residence permit, can become an individual entrepreneur. A foreigner will not be registered as an individual entrepreneur.
The head of a joint stock company must be an ethnic Finn. Maintaining accounting records and submitting reports are mandatory. To avoid paying fines, it is better to entrust accounting to a local specialist.

Important nuances when buying a company

There are a few more points worth noting:

You need to decide whether you will handle the management yourself or whether you would prefer to be a beneficiary receiving share dividends.
How will the purchase be made? You can purchase a completely legal entity with a name and other attributes. In most cases, the new owner opens his own business and buys assets: a customer base, a building or office, production facilities, etc.

How does the purchase work?

To engage in entrepreneurial activity, you must pay a state fee, obtain a business permit and contact the Bureau of Patents and Registrations with the necessary package of documents. Afterwards, all that remains is to order the necessary seals and stamps and you can begin your activities.

In the future, a business owner can apply for a residence permit and permanent residence, lending on preferential terms, and cooperation with EU countries.

You can search for a suitable company on your own, but it is better to contact a specialized company. Databases of companies for sale of all possible types of activity are at the disposal of both Russian companies and Finnish brokers.

This will help to avoid numerous mistakes at the stage of object selection and registration. Don't forget about the language barrier. And it is better to seek the help of an experienced lawyer than to be refused registration and start the procedure all over again.

Important

If the majority of the acquired assets are real estate, you can contact the Bank of Finland to receive a loan of up to 60% of the purchase. The interest rate does not exceed 4 – 5% per annum.

In addition, there are venture funds in the country that finance startups and small and medium-sized businesses, subject to the provision of a well-written business plan.

Languages

I came to Finland knowing Finnish to a solid A1.3 level. This level of language proficiency is sufficient for everyday life and working in a store. For the first year and a half in Finland, I studied independently using books from the library. When I first started learning Finnish in Russia, everyone asked me: “Why are you doing this? In Finland, everyone speaks English.”

Yes, they say: in a hotel, in a cafe and in a store. But in government agencies they don’t talk. All official documents are drawn up in Finnish and Swedish; knowledge of English is not required for a civil servant. When we closed the store and we had free time, I took paid courses. In the fall of 2017, I begin to storm level B1.

Business immigration to Finland or residence permit when opening a company

Business immigration to the “land of lakes” is not an easy matter. The country is attractive not only commercially, but also from the point of view of social protection of citizens. Therefore, it is fair to note that the number of people wishing to come to Finland for permanent residence is large. The Finnish government is building a loyal immigration policy, but nevertheless, strong arguments are needed to live in the country.

How to get a business visa to Finland

The application process is usually delayed due to the large number of applications. Required documents:

international passport of any type;
one completed application form in English;
2 identical photographs of good quality;
invitation from a legal entity;
tickets (preferably returnable);
medical insurance in the amount of 30,000 euros;
income certificate;
a copy of the Russian passport and previous foreign passport, if available;
consent to the use of personal data.

You will have to pay 35 euros to review your application. The validity period of the visa in this case is from 90 days to 2 years.

Interesting

So, in the case of conducting commercial activities, a citizen must obtain a residence permit. This is possible only after obtaining a visa to this country and subject to certain conditions, such as good knowledge of the language, compliance with Finnish law, and proper paperwork. To obtain a residence permit, you must collect a standard list of papers, which, by decision of the consulate, can be supplemented with other documents.

The main list of documents for obtaining a residence permit includes:

application form;
copy of international passport;
justification of the purpose and reason for the move;
a lease agreement or other paper confirming the immigrant’s housing availability;
income certificate;
receipt of payment of the consular fee.

In case of moving for the purpose of engaging in entrepreneurial activity, the citizen is required to provide the consulate with another package of documents:

document on the type and form of entrepreneurship;
business plan;
information about the company’s turnover for the next few years;
papers on the commercial potential of the company, that is, the availability of capital;
personnel certificate;
document on the income of the company founder;
company charter;
tax receipts.

The procedure for obtaining a residence permit is simple and transparent, in addition, the Finnish citizen registration system is devoid of bureaucratic formalities. The authorities also offer residence permits for startups from Russia, India, the USA and Africa, if you have an innovative business plan. This is done by Business Finland.

Tips for beginner businessmen

Let's consider the recommendations of entrepreneurs who have a business in Finland:

registering a company in Finland is the first thing any person should do. Next, you need to pay special attention to the business plan and evaluate the consumer market;
monitor the types of services and products of direct competitors who have a similar type of activity. Analyze the types of economic activities in Finland;
read the documentation carefully. If you have the slightest doubt, it is better to seek help from lawyers;
we need to act decisively. A European entrepreneur must be confident in the success of his business, otherwise he will face a fiasco at the start;
Current problems are not a reason to panic. Many Finnish enterprises, before climbing to the top of Olympus, experienced more than one crisis and more than one bankruptcy.

It is better to once again get advice from experienced businessmen or specialists in a particular industry. In Finnish territory, the vast majority of companies have their own consultants in the form of freelancers who provide assistance throughout the entire business project, even when the company has found its feet and has a good increase in profits.

You will have to pay money for consultations, and not small ones, but according to statistics, 60% of 100% of companies that did not have a consultant very quickly became bankrupt.

Underwater rocks. Recommendations

Let's look at the main obstacles that await a Russian entrepreneur in Finland:

the language barrier;
lack of a residence permit or significant capital;
lack of knowledge in the area where the person decided to organize his business;
reluctance to have partners or consultants;
difficulties in obtaining credit financing.

You should not turn to the Internet for advice and read articles from people who have succeeded in their business. As a rule, they lay smoothly, but do not tell the key points. If you do not have start-up capital, it will be difficult to get a large loan from a fund or a commercial bank. In this case, it is better to look for outside investors or attract partners.

What business to open in Finland: business proposals

Most Russians who consider the Finnish market as a launching pad for their business focus on industries such as trade and services. They really are the most profitable and popular for small and medium-sized businesses. But in addition, we should not forget that Finland has an accessible geographical location for its compatriots and has numerous natural beauties, so the tourism business is also among the most profitable.

Finnish companies have a prestigious reputation in the global business community. The state facilitates the building of business infrastructure, so it is easy for entrepreneurs to enter the market. But despite the undoubted advantages of owning a company in Finland, starting a business there means initially setting a high bar. It is difficult for small companies to exist in conditions of fierce competition, and for foreign entrepreneurs in the presence of a language barrier it is even more difficult. But if an entrepreneur is ready for hard work, then his efforts will be rewarded with significant profits.

Cellular communications, internet and terminal

There are not many mobile phone operators in Finland. There are prepaid and contract rates, for which you receive an invoice at the end of the month by mail or electronically. The operator Telia opens a contract tariff to those who live in Finland for more than one year, and Elisa - more than two.

The contract tariff for the company is opened immediately. The same situation is with the Internet. The operator checks whether the house is connected and sends a modem that must be connected to a special outlet. The modem itself begins to distribute the network, to access which you need to enter a very long password. There is reliable protection everywhere; you can’t just change the network settings.

In 2020, prepaid tariffs became cheaper and the cost of traffic decreased. But I no longer have up-to-date information. The payment terminal must be ordered from the operator. Terminals may not be available, in which case the wait will be about a month or two. We opened and started working without a terminal. It's good that there were two ATMs in the shopping center.

Advantages and disadvantages of starting a business in Finland

Creating a company abroad, on the one hand, is a risky enterprise, on the other hand, it is profitable, if you take into account all the nuances of entrepreneurship and the characteristics of the country in which you plan to do business.

Advantages for starting your own business in Finland:

political and economic stability;
developed infrastructure;
convenient geographical location (borders on Russia and developed European countries);
support for small and medium-sized businesses from the state;
transparent tax system;
low crime and corruption levels;
quick business registration.

In Finland, more than 6 thousand enterprises belong to entrepreneurs from Russia. Russians note not only the positive aspects of doing business, but also point out the following difficulties:

High competition. There are more than 250 thousand companies in the country. To carve out a niche in the market, a thorough analysis of the local market and a competitive business plan are necessary.
Difficulties in obtaining loans from Finnish banks. The initial capital must be sufficient to maintain the company for at least a year.
Difference of mentalities. Finnish businessmen conduct business responsibly and honestly and do not accept “gray deals,” corruption, or bribery. Business “at random” will not work here.
The language barrier. To start a business, you need to learn Finnish. Without sufficient knowledge of the national language, it is difficult to attract and find clients, understand the peculiarities of legislation, and conduct business negotiations.

Finns speak English fluently. Some Finnish companies use English as the main language.

Local business support services will help you avoid difficulties and unnecessary hassle. Experts will advise on issues of creating and running a business.

Purchasing business

Before you buy an existing company, you need to ask yourself a few questions:

What is the purpose of buying a ready-made business: active participation or receiving passive income?
In what language do you manage your business and serve your customers?
How does the property transfer process work?
What is the profitability and tax structure?

Finland is a country of honest business. The risk of buying an unprofitable enterprise is minimal.

The advantages of purchasing a ready-made enterprise are as follows:

presence of an audience of consumers;
profit from the first days;
well-established equipment;
highly qualified workforce;
finished premises, etc.

A functioning business frees you from many of the problems that arise for the creators of a new enterprise at first (conquering a niche in the market, creating a positive image, training staff).

To avoid risks and possible difficulties when purchasing a company, foreign investors turn to Finnish specialists.

Acquisition of an existing business in Helsinki

You can also buy a ready-made business in Finland. Most foreign entrepreneurs buy a business in Helsinki, focusing on this city as the capital of the state. You can, for example, purchase a store or restaurant in the name of an already registered company. The income from such a business is influenced by the location, turnover of the enterprise and many other factors.

Prices for ready-made businesses in the capital are very scattered:

The cheapest purchase would be a shopping pavilion with a cafeteria. Prices for it vary around 50 thousand Fm (About 10 thousand $).
Buying a pizzeria in Helsinki will cost no less than 100 thousand Fm (about 20 thousand $).
A jewelry workshop or store in the capital of Finland costs approximately 120 thousand Fm ($24 thousand).
The price for a cafe is from 130 thousand Fm (26 thousand $).
A photo studio will cost sharply more – no less than 200 thousand Fm ($40 thousand).
A beer restaurant will cost a businessman quite a lot – from 220 thousand Fm ($45 thousand).
It will cost a pretty penny to purchase a travel company. Its price will not be less than 1 million. 800 thousand Fm ($370 thousand).
The most expensive ready-made business is a sports center, which will cost from Fm 2 million ($420 thousand) in Helsinki.

Recipe for success for your own business

“The success of a business depends on whether the entrepreneur has sufficient experience and knowledge in the area in which he plans to open his business. In addition, the entrepreneur must understand the local culture and customs, and be familiar with the peculiarities of the local business culture. You need to study the market well, the demand in this market, the needs of your clients. What sells well in Russia will not necessarily find demand among Finnish consumers,” says Toivo Utso.

“Foreign languages are a very important tool for a new entrepreneur. The most important thing is to understand the language and be able to speak it so that you are understood. Without a sufficient level of language training, it is very difficult to find clients and work with them; Without speaking the language, it is difficult to understand the intricacies of the legislation and understand your rights and obligations; Difficulties may also arise when fulfilling contractual obligations,” warns Utso.

Investments for the future

Finnish business has taken a wait-and-see approach to active investments in Russia due to sanctions and a weak ruble, but is ready to deepen cooperation

The high-speed train "Allegro", having flown the journey from Helsinki in just three and a half hours, slowly arrives at the Finlyandsky Station in St. Petersburg. Passengers emerge just as slowly: Finnish and Russian tourists, representatives of the upper echelon of the St. Petersburg middle class, who can afford to travel to a neighboring country to buy sanctioned goods, go to sales, or simply stroll along the pretty streets of Finnish cities. In the crowd, sharply dressed men and women stand out, not burdened with much baggage: top managers or middle managers of companies who came for short-term negotiations or on a longer business trip.

Photo TASS

Launched in 2010, the Allegro train can be considered a unique symbol of how trade and economic relations between the two countries have developed in recent years. In 2020, with bilateral trade at its highest level in several years, rail passenger traffic hit an all-time high. In the first half of 2018, it fell by 10.8%, and thus “Allegro” is in tune with the slight minor mood that now reigns in the Russian-Finnish business environment.

However, even if we leave aside the fact that a slight rollback is observed in comparison with the peak, and not with the average, and that the touch of decadence after the takeoff seems to be in line with the laws of the economic genre, pessimism does not yet dominate the agenda. Investments by Finnish companies in Russia are beginning to take on a qualitatively different character - increasing the degree of processing, the science and financial intensity of projects, and finally, strengthening their export orientation: producing more in our country in order to then send goods to foreign markets. And those who work in the trade sector manage to find growing niches in conditions of stagnant or falling demand.

Current types of business

More than 50% of all products produced in the country come from small and medium-sized businesses.

The most popular directions for starting a business:

trade;
service and tourism;
hotel business;
services sector;
logistics.

Entrepreneurs from Russia most often choose the service sector, hotel and restaurant business, and trade for business.

The priority sectors of large business in Finland are:

information Technology;
pharmaceuticals;
energy;
telecommunications;
forest industry;
biotechnology;
healthcare;
construction.

Some business sectors in Finland require a license, which is issued for a certain period. If the provisions of the license are violated, it is revoked.