The short answer
Starting a business in Finland can cost almost nothing — or a few hundred euros — depending on the structure you choose. A toiminimi (sole trader) is the cheapest and simplest option. A limited liability company (Oy) involves more upfront costs. Either way, Finland has one of the lower barriers to entry in Europe.
Here's what you actually need to budget for.
Toiminimi (sole trader)
A toiminimi is the most common starting point for freelancers, consultants, and solo entrepreneurs in Finland. It's a business in your own name, with no separation between you and the company legally.
Registration costs:
- Registering through the Trade Register (PRH) costs €70 (online, 2024/2025 rate)
- Registering only through the Tax Administration's OmaVero — for example, just to join the Prepayment Register — is free
- If you want to register an auxiliary business name, that's another €70 per name
If you don't need a protected trade name and just want to operate under your own name, you can register for free and start immediately.
What you'll also need to account for:
- YEL pension insurance. Mandatory if your estimated annual income from the business exceeds €9,208 (2025 figure). Contribution rate is around 24% of your confirmed YEL income.
- VAT registration. Mandatory once your annual turnover exceeds €20,000 (raised from €15,000 on 1 January 2025). Below that, registration is optional — but registering voluntarily lets you deduct the VAT you pay on business purchases.
- Accounting. Prices for basic bookkeeping services start from around €50–100 per month for sole traders.
Osakeyhtiö (Oy, limited liability company)
An Oy separates your personal and business finances legally, which is often important as the business grows and takes on more risk.
Registration costs:
- Online registration through the Trade Register: €280 (2025 rate for new Oy registrations via YTJ)
- No minimum share capital requirement (removed in Finland in 2019)
Ongoing costs to expect:
- Accounting typically from €100–200/month depending on transaction volume
- At least one board member and regular annual general meetings required
Other startup costs to factor in
Tools and software. Accounting, invoicing, project management. Many services have free or low-cost tiers that work well at the start.
A business bank account. Highly recommended even for sole traders. Many neobanks (Revolut Business, Wamo, Holvi) offer free or low-cost accounts with no minimum balance.
A website. Costs range from free (using a builder) to a few hundred euros for something custom.
Professional services. If you're registering an Oy, a one-time consultation with an accountant or lawyer to set things up correctly is often worth the cost.
The most underestimated cost: YEL
Many first-time entrepreneurs in Finland are surprised by YEL costs. It's not a one-off fee — it's an ongoing contribution based on your estimated work income, paid monthly or quarterly.
The minimum YEL income threshold for mandatory insurance is €9,208/year (2025). The contribution rate is approximately 24% for new entrepreneurs in their first few years. On a confirmed income of €20,000, that's roughly €4,800 per year.
The upside: YEL income determines your pension accrual and several social security benefits, so setting it realistically matters for the long run.
Summary: what it costs to get started
Ongoing costs — YEL, accounting, software, bank account — are where the real budget planning happens. For most freelancers starting out, total first-year costs outside YEL are well under €1,000.
NoCFO is built for Finnish sole traders and small businesses. Track income and expenses, manage invoicing, and keep your bookkeeping in order — from day one. Get started free →