How to Build a Startup in Finland: Step by Step, Where to Apply, and What Each Institution Expects

Introduction: Let’s Break the First Illusion

Building a startup in Finland is:

• Not easy

• Not fast

• But possible if you understand the system

The system will not motivate you.
It demands correct documentation, a solid plan, and the right order.
If you follow the wrong order, you will go door to door and get rejected.

1️⃣ What a Startup Is — and Is Not — in Finland

A Startup Is Not Opening a Café

In Finland, a “startup” means:

• A scalable business model

• A digital or technology-driven structure

• International growth potential

From the government’s perspective, the key question is:

“Can this business scale and create employment?”

If:

• You are only thinking about paying yourself a salary
  → you are not building a startup, you are starting a small business.

Accept this distinction from the beginning.

2️⃣ The Business Idea Stage: What Finland Actually Wants

Questions Your Idea Must Answer

• Is this a real problem?

• Does this problem exist in Finland?

• How is your solution different from competitors?

The Biggest Mistake

Thinking:

“It works in Turkey, so it will work here too.”

Finland has:

• A different consumer mindset

• Slower decision-making

• Less impulse buying

3️⃣ Business Plan: Mandatory If You Want to Be Taken Seriously

Why a Business Plan Is Non-Negotiable

• Funding applications

• Bank meetings

• Accelerator and incubator programs

What Your Business Plan Must Include

• Clear description of the business idea

• Target customer profile

• Competitor analysis

• Revenue model

• 12–24 month financial projections

⚠️ You cannot build a startup without basic Excel skills.

4️⃣ Choosing the Company Type: Ownership, Risk, and Credibility

Most Common Company Types

Toiminimi (Sole Trader)

• Fast and cheap

• Weak for startups

• Cannot attract investors

Osakeyhtiö (Oy – Limited Company)

• Standard for startups

• Can receive investment

• More expensive but taken seriously

📌 A real startup = Oy

5️⃣ Company Registration: Where and How?

Authority: PRH (Patentti- ja rekisterihallitus)

Registration Process

• Online application via ytj.fi

• Founders’ details

• Company name

• Business field

Requirements

• Finnish personal identity number

• Bank account

• No minimum share capital required (for Oy)

Average setup time:

• 1–2 weeks

6️⃣ Startup Funding & Support: Not Everyone Gets It

1. Business Finland

The most well-known — and the hardest door.

Types of funding:

• Tempo funding

• Research & Development grants

What they expect:

• International growth potential

• Strong digital or tech foundation

• A capable team

❌ “I will do everything alone” usually gets rejected.

2. TE-toimisto (Starttiraha)

Not startup funding, but critical at the early stage.

Who can apply?

• New entrepreneurs

• Unemployed individuals or those leaving employment

What it provides:

• Monthly living support

• Financial breathing room for the first 6–12 months

⚠️ You must apply before officially registering the company.

3. Incubator & Accelerator Programs

Examples:

• Maria 01

• NewCo Helsinki

• Aalto Startup Center

What they provide:

• Mentorship

• Networks

• Access to investors

But:

• Not everyone is accepted

• A pitch presentation is mandatory

7️⃣ Banks and the Financial Reality

Finnish Banks

• Not startup-friendly

• Highly risk-averse

Typically required:

• Your own capital

• Public funding

• Angel investors

Forget loan fantasies. Bring proof, not hope.

8️⃣ Taxation and Real Life

The Tax System

• Rules are clear

• There are no shortcuts

• Mistakes are expensive

Strong Advice

• Hire an accountant from day one

• “We’ll figure it out later” destroys companies

9️⃣ The Most Common Fatal Mistakes

• Registering the company too early

• Applying for funding in the wrong order

• Leaving marketing to the very end

• Not taking social media seriously

A startup is not just a product — it is visibility.

Conclusion: You Can Build a Startup in Finland — But…

• If you are impatient → no

• If you want to be a solo hero → very difficult

• If you hate paperwork → exhausting

But:
With the right order, the right applications, and realistic expectations,
Finland offers a solid foundation for startups.

Thanks for reading.