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Starting a limited liability company gets easier in July


Starting a business gets easier this summer, as the minimum share capital requirement for private limited liability companies will be removed. The reform is expected to benefit the lion’s share of new limited liability companies.

The minimum share capital requirement of EUR 2,500 for private limited liability companies will be removed as of 1 July 2019 – a reform that will make starting a business in Finland even easier. The capital requirement will also be removed from limited liability housing companies. Likewise, co-operatives’ funding obligation will be waived. However, the minimum share capital of a public limited liability company will remain the same, i.e., EUR 80,000.

More micro and small companies

By showing the door for these minimum capital requirements, the government aims to facilitate the pursuit of micro and small business activities by lowering the threshold to set up a company. The change makes it a tad easier for entrepreneurs to do business through limited liability companies, a result that falls in line with the government’s overall target of removing unnecessary norms. In addition, even though the objective of the capital requirement has been to protect the creditors of the company, the requirement is widely regarded as irrelevant for that purpose.

In practice, the removal of the share capital requirement is likely to benefit approximately 85% of new private limited liability companies. It may also lower the threshold for setting up a company for entrepreneurs who would otherwise act as private traders. Further, many existing private limited liability companies may also benefit from the removal, for instance through lowering their share capital to cover old losses.

International trend

The abolition of the share capital requirement is a growing international trend. At present, for example, limited liability and similar companies may be set up either entirely without share capital or with a 1 euro share capital in 19 EU Member States.

For further information, please contact:
Ismo Hentula
  • Ismo Hentula
  • M: +358 40 8338 002
  • E:
Petri Kyllönen

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