Finland, a North European country, connects with Russia, Norway and Sweden which are developed countries. The geographic location itself makes the country more effective for the business and trade. It attracts a large number of business leaders and foreign investors to the country.
The government of the country is taking many steps towards the development. This leads to the prediction of great success in future. Hence it is a favorite site of business for many entrepreneurs. This article highlights both benefits and drawbacks of establishing a business in Finland.
| Benefits of Doing Business in Finland | The Drawbacks of Doing Business in Finland |
| Favourable Geographic Location. | Strict business rules. |
| Well developed infrastructure. | Getting credits is hard. |
Advantages of Doing Business in Finland
- Starting with business:
Finland has startup friendly policies for business owners and managers. Foreign companies are warmly welcomed in the country and given equal opportunities to develop. Finland is highly remarkable for developing the origin of the company.
The government gives importance to new foreign companies by inspecting their business strategies and ensuring the proper entrepreneur skills.
- External supports:
Finland is the country which provides win and win strategies for new entrepreneurs. Finland is the country where business persuaders can earn and learn at the same time. Many sources are available for new entrepreneurs to furnish their skill sets with running a business.
Many developed companies like Startup Sauna, NewCo Factory, Helsinki Think provide a platform for new entrepreneurs to sharp and shape their strategies. Network is your networth stands true in Finland.
- Technology:
Finland is a technologically advanced country. Internet access and online processes make the country work at a faster rate. Every small startup to prominent industries are managed and easily accessible through the internet world. This makes collaboration and community service engagement effortless.
The telecommunications industry is hugely effective in the country. This leads to high access to the technical world and expands opportunities in the various possible sectors.
- Judiciary System:
The Judiciary System succeeds in maintaining a peaceful environment in the country. From the business point of view, the corruption rate is very low. This makes development of businesses in a healthy manner. Finland ranks at 5th position after Switzerland, New Zealand, Denmark and Sweden for low corruption rate.
This rank grabs position among the 25 top countries. Low corruption rate and crime rate develops a healthy environment for foreign companies and startups to grow in the country.
- High education system:
Finland is well known for producing skilled young graduates every year. Every age group from youngsters to highly experienced workers provides efficient performance in their field.
They have mastered the technical as well as their respective field skills. Workforce is hardworking and is highly responsible for their projects. This makes foreign investors attracted to the country and start their business in Finland.
Finns are goal oriented and concentrated towards their aim. This reflects the efficiency and success stories of companies like Nokia, Kone, Supercell, Wartsila, Rovio etc.
- Low Taxes:
Finland has the lowest corporate tax which is 20% EU. Low tax policies attract high quality startups and foreign investors to the country. Other taxes include profit tax, estate tax. There are extra but low tax rates for foreign companies.
Value add tax (VAT) is another tax which is indirectly accessed by the government according to the development of value of your company.
Disadvantages of Doing Business in Finland
- Registration of Property:
There are major issues dealing with registration of property in Finland. It is a highly time taking process.
There should be a proper show casing of the legal Business strategies and capital invested in the company because this acquires much efforts as well as time. Company owners have to physically appear at government departments for the procedures. It takes upto 5 weeks of time in legal procedures.
- Construction Permits:
Construction Permits are pain for business owners. It takes upto 66 days to complete the process.
There are 16 procedures to be taken in consideration for construction permission. Multiple times inspection is taken in the handle by different government departments. After the construction permit, the constitution process does not require plenty of time.
- Getting electricity:
Electric connection approval also requires a plenty of time. After legal approval, the regional electronic department carries out the wiring and meter installation process. For inbuilt wiring in the company estate, the company has to hire other electricians.
- Investor Protection:
Finland is ranked at 70th rank by the World Bank and International Finance Corporation for having an investor friendly economy.
The economic graph of the country faces high ups and downs since the past 8 years which is 2012. This makes it difficult and risky for investors to invest in the country.
- Trading across the border:
The trading charges are low in the country, however the legal procedures take plenty of time to get completed. It takes four documents to be legalized for exporting and five documents to be legalized for importing.
The whole process takes 1 week on average. This causes delay in trading goods and products across the border and makes the import and export rate low of the country.
- Enforcement of contracts and solution of insolvency:
Insolvency takes upto 2 years to get a satisfactory solution in the country. This takes a plenty of time for the company which can be used otherwise for development and growth. Enforcement of contracts takes 375 days to complete on average which is low according to OECD records.
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Business, marketing, and blogging – these three words describe me the best. I am the founder of Burban Branding and Media, and a self-taught marketer with 10 years of experience. My passion lies in helping startups enhance their business through marketing, HR, leadership, and finance. I am on a mission to assist businesses in achieving their goals.