Establishing a limited company easily

1. Growing a business is easier

If you plan to grow and expand your business, a limited company is the best and sometimes the only option. A limited company can grow in many ways: the company’s ownership base can be expanded by taking on new shareholders, its business operations can be made more efficient by hiring employees, or different business and earning models can be developed for it without having to think about their effects on the company form.

In addition, you can collect funding or apply for a business loan more versatile and easier than as a representative of other types of business!

2. Financial planning is more precise

A limited company offers excellent opportunities to plan both your business and your own personal finances and their taxation. With good planning, you can save a lot of money!

As an entrepreneur, you can decide whether you pay yourself a salary according to your personal tax rate or whether you distribute dividends from profits with lighter taxation. You can also save the profits on the company’s balance sheet in case of possible worse times, for larger acquisitions, investments, or development projects.

3. Personal risks are lower

If your company has a lot of cash flow, and you don’t want to be responsible for your company’s finances with your personal assets, a limited company may be the best solution. In a limited company, the financial risks of business are directed to the independent company, and not to the entrepreneur’s personal finances.

The entrepreneur is liable only to the extent of the initial capital invested. The limited company is responsible for its own debts as an independent legal entity, and the entrepreneur’s personal liability is therefore smaller.

4. Your company’s credibility is stronger

For a small entrepreneur, credibility in the direction of customers, partners and potential financiers is of paramount importance. The limited company acts as a marketing tool, strengthening the credibility of your company. It shows that you are serious about your business and, if necessary, you can, for example, hire additional hands for your client’s assignments.

Credibility issues are particularly emphasized in situations where you do business with larger companies, pursue large contracts, or continuously acquire new customers without an established customer base.

Through the UKKO Entrepreneur service, establishing a limited company is easy. By registering for our service and selecting the Start company establishment button, your path to becoming a limited company entrepreneur begins.

Notice of establishment of a limited company

Through our service, you can fill in all the necessary information for the establishment application of your limited company, our service guides you through the steps. In connection with the establishment, the following information must be provided: Entrepreneur’s information, name of the limited company, industry, board members, possible choice of CEO, owner information, number of shares and, in addition, the willingness to join the VAT and tax pre-payment registers. When you have filled in the information and checked it carefully, you are a big step closer to starting your new business.

You will be sent the documents of incorporation for electronic signature usually no later than the next business day, and you will also receive payment information for the trade registration fee related to the establishment of your limited company. The size of the official fee for limited companies established through the UKKO Entrepreneur service is 280 € (incorporation done electronically) or 370 € (incorporation done with a paper form) and you can deduct it as an expense for your company to be established. Send us the receipt for the payment as soon as possible so that we can get your establishment application on the way.

Registration of a limited company

Applications to establish a company are processed by the Finnish Patent and Registration Office (PRH), and you will receive a message from our service when your company’s business ID number has been created. This usually takes 1-2 weeks. To operate as a limited company, you also need a company account for your company. The easiest and the fastest way for an UKKO Entrepreneur to open a company account is to get UKKO Business Account. You can do it here.

Opening a business account at the bank often requires the completion of trade registration, which may take up to 1-2 months depending on the patent and the processing status of the registry office. You can track the status of your company establishment in the Virre information service, and you will receive a message from PRH about the completion of the trade registration.

If you decide to get a business account from your bank, we recommend contacting the bank so that you can ensure the more specific bank-specific conditions for opening a business account, while you are waiting for your application to be processed. The UKKO Entrepreneur service is compatible with the following banks: OP, Nordea, POP Pankki, Säästöpankki, Danske Bank, Ålandsbanken, Handelsbanken, Holvi and Revolut.

Once you have opened your UKKO Business Account or business account in your bank, you are ready to start your own business. Just log in to our service, connect your business account and you can start invoicing right away!