Frequently Asked Questions
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We’ve compiled answers to some of the most common inquiries to help you get the information you need quickly and easily.
FOUNDATION OF SOLO ENTREPRENEURSHIP
How do I start a solo entrepreneurship in Finland?
To start a solo entrepreneurship (toiminimi) in Finland, follow these steps:
Choose a Business Idea: Decide what kind of business you want to run and make sure there is demand for it in the market.
Register Your Business: Register your business online with the Finnish Trade Register via the Yritys- ja yhteisötietojärjestelmä (YTJ) website.
Apply for Necessary Permits: Depending on your business type, you might need specific licenses or permits.
Open a Business Bank Account: This is essential for separating your personal and business finances.
Register for VAT (if applicable): If your annual turnover exceeds €20,000, you will need to register for VAT.
Register for YEL Insurance: If you are a solo entrepreneur, you must have self-employed person’s pension insurance (YEL), which covers your pension and social security.
We provide guidance on each of these steps, from registration to understanding the necessary legal and financial requirements.
Do I need to hire an accountant for my solo business?
While it’s not mandatory for a solo entrepreneur to hire an accountant, it’s highly recommended for managing your business finances efficiently and ensuring compliance with Finnish tax laws. An accountant can help with:
Bookkeeping: Keeping track of your income, expenses, and business transactions.
Tax Filing: Ensuring that you meet all tax deadlines and pay the correct amounts.
Financial Planning: Helping you manage cash flow, set aside funds for taxes and social contributions, and plan for the future.
Compliance: Ensuring your business meets all Finnish tax and legal requirements.
We offer bookkeeping services tailored to solo entrepreneurs, helping you manage your finances smoothly and focus on growing your business.
How can I separate personal and business expenses as a solo entrepreneur?
To separate your personal and business expenses:
Open a Separate Business Bank Account: This will make it easier to track income and expenses related to your business.
Keep Detailed Records: Maintain clear records of all transactions, and make sure any personal expenses are not mixed with business expenses.
Use Accounting Software: Utilize accounting software to categorize business and personal expenses separately.
Get Advice from an Accountant: An accountant can help you set up the proper systems to keep personal and business finances separate.
We can provide guidance on managing your finances effectively to ensure a clear distinction between personal and business costs.
What is the difference between a solo entrepreneurship (toiminimi) and a limited liability company (Oy)?
The main differences between solo entrepreneurship (toiminimi) and a limited liability company (Oy) are:
Solo Entrepreneurship (Toiminimi):
Easier and cheaper to establish.
The entrepreneur is personally liable for the business’s debts and obligations.
Taxes are paid on personal income, and business profits are taxed as part of your personal income tax.
Limited Liability Company (Oy):
More complex and expensive to establish. (Even though a minimum capital requirement is no longer necessary, there are still other obligations in establishing a company, and fulfilling any other statutory requirements.)
The company’s liabilities are separate from the entrepreneur’s personal assets.
The business pays corporate taxes (currently 20%), and any salary paid to the owner is subject to personal income tax.
What are the costs involved in starting a solo entrepreneurship in Finland?
Starting a solo entrepreneurship in Finland typically involves the following costs:
Business Registration Fee (Toiminimi): €70 (2025) (incl. VAT 0%).
YEL Insurance (Pension Insurance For The Self-employed): is statutory pension insurance for all entrepreneurs in Finland. The YEL insurance contribution amount depends on your estimated annual income. In 2025, the lower limit for YEL income amount is €9 208.43 (annual income). This means that if your estimated YEL income exceeds this amount, you must take YEL insurance within 6 months of starting your business. As a new entrepreneur, you will receive a 22% discount on your YEL contributions for the first four years. You can choose in how many instalments you pay the insurance payment during the year.
VAT Registration (if applicable): Free. However you need to account for VAT payments if your business turnover exceeds €20,000.
Accounting: Ongoing costs for professional accounting services (we offer affordable packages for solo entrepreneurs).
Other Operational Costs: Depending on your business, you may have additional expenses, such as office equipment, marketing costs, and software tools.
We can help you estimate the initial costs for your specific business and help you budget effectively.
ACCOUNTING
What are the tax obligations for solo entrepreneurs in Finland?
As a solo entrepreneur in Finland, you are required to:
VAT (Value Added Tax): If your annual turnover exceeds €20,000, you must register for VAT. The VAT rate is typically 25.5%, but some goods and services may have a reduced rate.
Income Tax: You must pay income tax based on the profit your business generates. Finland has a progressive tax rate. For more detailed information on taxation, visit the Tax Administration’s website (OmaVero/MyTax service).
Pension Contributions: As a solo entrepreneur, you are required to pay pension contributions through the YEL (Self-employed Person’s Pension Insurance) scheme, which covers your future pension and sickness benefits.
Corporate Tax: If your business is registered as a limited liability company (Oy), corporate tax applies to business profits, which is typically 20%.
We can guide you through the tax registration process and help you stay compliant with local regulations.
How do I calculate and pay my taxes as a solo entrepreneur?
As a solo entrepreneur in Finland, you must:
Track Your Income and Expenses: Keep detailed records of all transactions throughout the year.
Submit Your Tax Return: At the end of the year, submit your tax return to the Finnish Tax Administration (Verohallinto), reporting your income, expenses, and any deductions you’re entitled to.
Pay Taxes: Based on your income, you will need to pay taxes in installments throughout the year. The Finnish Tax Administration will send you tax payment reminders.
Our services include helping you understand and calculate your taxes, file your returns, and make sure you are fully compliant with Finnish tax laws.
What are the benefits of going paper-free as a solo entrepreneur?
Going paper-free offers several advantages for solo entrepreneurs, including:
Environmental Impact: Reducing paper consumption helps conserve natural resources and lowers your business’s carbon footprint.
Efficiency: Digital tools streamline processes like invoicing, record-keeping, and communication, saving time and reducing errors.
Cost Savings: You’ll spend less on paper, ink, and storage, which can add up over time.
Security: Digital records are easier to back up and secure than paper documents.
We support solo entrepreneurs in going paper-free by providing digital accounting and business management tools.
What are the key benefits of having a solid accounting system for a solo entrepreneur?
Having a good accounting system benefits solo entrepreneurs by:
Helping You Track Cash Flow: Knowing where your money is coming from and going will help you manage your finances better.
Ensuring Tax Compliance: Proper accounting helps you meet your tax obligations and avoid penalties.
Business Decision Making: Accurate financial data can guide important decisions like investments, hiring, or scaling your business.
Reducing Stress: Knowing your finances are in order will help you focus on growing your business without worrying about financial mistakes.
We offer accounting solutions that provide clarity, control, and peace of mind for solo entrepreneurs.
How do I apply for VAT registration in Finland?
To apply for VAT registration in Finland:
Eligibility: You must apply for VAT liability if your annual turnover exceeds €20,000 in 2025. However, you can also voluntarily register for VAT even if your annual turnover remains below this threshold. As a VAT-registered business, you can deduct the VAT you pay on purchases and acquisitions, such as supplies, equipment, services, and other business-related expenses. This can improve your company’s cash flow and reduce costs since the VAT paid is refunded. Additionally, for some customers and business partners, being registered for VAT can enhance your company’s credibility and reliability. This can be particularly important if your business aims to expand its customer base or establish partnerships with other VAT-registered companies.
Application: The application can be made online via the Finnish Tax Administration’s website (Verohallinto). You will need to provide your business details and tax identification number.
VAT Number and Invoicing: After registration, you must include your company’s Business ID (Y-tunnus) on all invoices, as it is a mandatory invoice detail for VAT-liable businesses. You are also required to collect VAT from your customers and remit it to the tax authorities according to the selected VAT reporting period. In international trade, such as intra-EU transactions (selling goods or services to another business within the EU), the invoice must include the VAT number (i.e., the VAT identification number, in the format FI12345678).
We can assist with the VAT registration process, help you set up invoicing, and ensure you are compliant with VAT laws.
How can I manage my finances as a solo entrepreneur?
Managing your finances effectively as a solo entrepreneur involves:
Tracking Income and Expenses: Use accounting software to keep track of all business-related financial transactions.
Setting Aside Money for Taxes: Estimate your taxes and set aside funds regularly to avoid surprises at tax time.
Budgeting for Growth: Plan for future investments and set a budget to avoid overspending.
Financial Planning: Regularly review your cash flow and financial position to make informed business decisions.
We provide full accounting services to help you manage your finances and ensure your business remains financially healthy.
WEBSITE GENERATION AND WEB DESIGN
How long does it take to design a website?
The timeline for designing a website depends on the complexity and specific requirements of your project. Typically, the initial draft of your website is ready within one or two weeks. After that, we collaborate with you to make adjustments based on your feedback, ensuring the final product meets your expectations.
Can I update my website content after it’s completed?
Absolutely! Our websites are built on user-friendly Content Management Systems (CMS) like WordPress, enabling you to easily update and manage your content without needing extensive technical knowledge.
Will my website be mobile-friendly and SEO-optimised?
Yes, every website we design is fully mobile-responsive and built with SEO best practices in mind. This ensures your site looks great on all devices and is optimized to rank higher in search engine results.
Do you provide website maintenance and support?
Yes, we offer comprehensive website maintenance and support packages to keep your site secure, up-to-date, and running smoothly. Our services include regular backups, software updates, security checks, and technical support to address any potential issues.
Which website platform do you recommend?
When you work with us, we handle everything for you, ensuring your website is more than just a collection of images and text. We focus on creating a seamless user experience within a well-structured framework that sets your business up for success.
What is your refund policy for website design services?
Our refund policy varies depending on the stage of your project and specific circumstances. Customer satisfaction is our priority, and we’ll work closely with you to address concerns and find a solution that works best for both parties.
Ready To Get Started Or Have More Questions?
Whether you’re planning to establish your solo enterprise, streamline your accounting, or build a professional website, we’re here to help every step of the way.
👉 Contact us today to discuss your needs and discover how our tailored solutions can support your success.
📩 Reach out via our contact form or email us directly at info@oskaraccounting.fi. Let’s bring your ideas to life!
