How to start a business in Finland as an immigrant: step-by-step guide (2026)

According to the Finnish Immigration Service (Migri), people with a valid Finnish residence permit can work as entrepreneurs, whatever the permit is based on, but the permit's own conditions must still be met:

• Family ties permit: allowed while the family relationship continues.
• Student permit: allowed, but your studies must progress.
• Work-based permit: allowed, but you must keep the job your permit was granted for.
• Permanent permit: allowed.

If you live outside the EU/EEA and want to run a business here, the rules are different. Check your own situation on migri.fi.

• Sole trader (toiminimi): the simplest and most common way to start alone. You and the business are legally the same person.
• Light entrepreneur (kevytyrittäjä): no company of your own. An invoicing service sends invoices for you and takes a percentage fee. Good for testing an idea or small, occasional work.
• Limited company (Oy): more paperwork and higher costs. Usually only worth it when the business grows or has several owners.

• Free business advice: regional enterprise agencies (Uusyrityskeskus) help new entrepreneurs plan and calculate their business for free, often also in English.
• Start-up grant (starttiraha): employment services can support your living costs during the first months of your business. You must apply before you start. If you register first, you may lose the chance.

1. Go to ytj.fi and choose to start a business as a private trader (elinkeinonharjoittaja). You fill in the Y3 form online, logging in with Finnish bank IDs.
2. Choose your business name, your field of business and your start date.
3. Decide whether to register in the Trade Register. It's required if you have a shop or office, employ someone, or your field needs a licence. Otherwise it's optional, but it protects your business name. The fee is 75 € (2026).
4. In the same form you can join the prepayment register and, if needed, the VAT register (see the next step).

After processing you get your Business ID (Y-tunnus), and you can start invoicing.

• Prepayment register (ennakkoperintärekisteri): joining means your customers don't have to withhold tax from your invoices. Most entrepreneurs join.
• Prepayment tax (ennakkovero): you estimate your profit and pay tax in instalments during the year. You can update the estimate in OmaVero.
• VAT (arvonlisävero): since 1 January 2025 you don't have to register for VAT if your turnover is 20,000 € or less in a calendar year. You can register voluntarily, for example if your customers are companies.

If your estimated work income is at least 9,423 € a year (2026), you must take out YEL insurance from a pension company. The contribution is 24.4 % of your confirmed YEL income, and first-time entrepreneurs get a 22 % discount for four years. YEL also affects your sickness and parental benefits, so don't set it too low.

• Separate bank account for the business. It makes bookkeeping much easier.
• Simple bookkeeping: keep all receipts and invoices. Many small businesses use an accountant (tilitoimisto) or a bookkeeping app.
• Licences and notices: some fields need them, for example food businesses must notify the municipality's food control. Check your own field.
• Get visible: a Google Business Profile and a simple website help customers find you.