Home   ·   Index   ·   Search

Setting up as a sole trader or "sole proprietor" in Finland

Disclaimer: Please note that this article is not a substitute for legal advice. Sandberg is not responsible for the content in any of the links provided and does not endorse any external providers referenced below. Please always check official websites or seek professional advice in your country when you need guidance. 

Setting up and registering a sole proprietorship

Starting a sole proprietorship in Finland is straightforward and doesn’t require a long registration process. 

Your business is required to register for VAT if your annual turnover is over 15,000 EUR (figure correct as of June 2022).  

The following link is a helpful guide to setting up as a freelancer in Finland. You will find up-to-date information and a guidebook for setting up a company "Guide for new entrepreneurs" or "Perustamisopas alkavalle yrittäjälle". The link for ordering the book is on the homepage. 

Homepage - Uusyrityskeskus


Using an invoicing company

It is also possible to invoice and receive payment for your work without starting your own business. You can sign up with a company who will invoice and handle your tax and other financial obligations for you. Below are some links to companies who offer that service. PLEASE NOTE: Sandberg does not have experience of, nor recommend, any particular company, so it is your responsibility to research the options available and select one to suit your requirements. 

If you decide to invoice this way, please check that the invoicing company you are using accepts payments from companies based in the UK.




YEL-insurance in Finland

If you invoice more than EUR 8,261 per year (2022 figure), you must take "YEL-vakuutus" (the Finnish mandatory social security insurance for entrepreneurs):


As a sole trader, you take care of your own pension cover. You take care of it by taking out a self-employed person’s pension insurance, i.e. YEL insurance. It will enable you to accrue pension and gain financial security against the loss of your job or your ability to work. The insurance is mandatory.

This can be paid for independently yourself, or via your invoicing company.  The YEL cost varies based on the invoiced annual total, but you can get deductions during the first few years as an entrepreneur if you are paying for the insurance independently. You may not be able to get such deductions if you invoice through an invoicing company, because here the legal entrepreneur is not the translator, but the invoicing company. 

If you don't get the YEL-insurance or pay the added value tax above that EUR 15,000 limit, you as the entrepreneur will incur penalties, usually fines or additional tax. 


Here are some useful links: