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Obligations and rights of the entrepreneur

Yrittäjän velvollisuudet ja oikeudet

People who live in and companies and corporations situated in the European Economic Area (EEA) have the right to carry on trade in Finland in accordance with legal and good practice requirements.

Entrepreneurship has long been a licensed activity in Finland, and though occasionally an actual licence is not required, a declaration must be made to the authorities on starting entrepreneurial operations. Licensing authorities are mostly municipal or city authorities, police districts, provincial offices and ministries. An inspection of the premises of, for example, companies selling foodstuffs, or of a beauty salon, must be carried out and a licence obtained from the municipal health authorities, before such premises can be utilised. It is therefore important to clarify exactly which licences are required for establishing a company, what kind of declarations need to be made and which laws and obligations concern the entrepreneur. These include sundry declarations and fees payable to authorities, company registration and both tax liability and the right to tax deduction for persons liable to VAT.

The entrepreneur must also take care of both his own pension and unemployment security payments and those of his employees, company and employee insurance and social security payments, and prepayment tax. It is important to pay attention to certain regulations covering recruitment of employees, contracts of employment and payment of wages. In Finland every entrepreneur has a legal obligation to keep books.

Opas yrityksen perustajalle”Guide for Starting a Business” (in Finnish), Yritys-Suomi Yrityksen perustajan info ”Information for a Person Starting a Business” (in Finnish), NYP yrityspalvelut (NYP Business Services), Työvoima- ja elinkeinokeskus (Employment and Economic Development Centre) or Verohallinto (tax administration).



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