Partnership and business formation laws in Finland.

Default partnership rules in Finland

In a Finnish avoin yhtiö (general partnership), profits are shared equally by default unless the partnership agreement provides otherwise. Partners are jointly and severally liable for partnership debts. The partnership must be registered with the Trade Register (Kaupparekisteri). A written partnership agreement is not legally required but is strongly recommended. Finnish partnership law is codified in the Open Companies and Limited Partnerships Act (389/1988).

The most important takeaway: profits are split equally by default in Finland, regardless of capital contributions. If you and a partner start a business and one of you invests €100,000 while the other invests €5,000, you still split profits 50/50 without a written agreement. This default can be overridden by a partnership agreement.

Osakeyhtiö (Oy) in Finland

The Oy (Osakeyhtiö) is the standard corporate form for Finnish startups. Since 2019, there is no minimum share capital requirement, making Finland one of the cheapest jurisdictions for company formation. Registration costs approximately €300 online through the PRH (Finnish Patent and Registration Office). The process takes approximately one week. Shares can be issued with or without a nominal value and can have different voting rights. A shareholders' agreement (osakassopimus) is separate from the articles and is recommended for multi-founder companies.

Without a shareholders' agreement, the relationship between founders is governed by the country's default rules, which rarely account for the realities of a startup — where contributions change over time and early effort often goes uncompensated. An operating agreement or shareholders' agreement is essential. Use our equity calculator to determine a fair split based on actual contributions.

What happens when a partner leaves in Finland

In an avoin yhtiö, a partner can withdraw with six months' notice. The partnership is dissolved by a partner's death or bankruptcy unless the agreement provides otherwise. For Oy companies, share transfers follow any restrictions in the articles of association. The Companies Act provides minority shareholder remedies including the right to demand redemption of shares and the right to petition for dissolution.

A written agreement should address departure terms specifically, including how the buyout value is calculated, the payment timeline, vesting schedules, and any non-compete provisions. Understanding the concept of dead equity is important for managing these situations. Learn more about how dead equity affects businesses.

Marriage and business equity in Finland

Finland uses avio-oikeus (marital right). On divorce, each spouse has a right to half of the combined marital property, which includes business interests acquired during or before the marriage. This is broader than many European regimes because it covers pre-marital assets as well. A pre-nuptial agreement (avioehto) can exclude business interests from the marital estate. The agreement must be registered with the DVV (Digital and Population Data Services Agency) to be valid.

Formation and cost details

Frequently asked questions

Related resources

• Equity calculator: find a fair split for your business
• Does your small business need an equity agreement?
• Equity for small businesses: the complete guide
• Dead equity calculator: how much is yours costing you?
• Slicing Pie calculator
• What is an operating agreement?
• All 32 European countries: partnership and formation laws
• US state directory: partnership and LLC default rules