Kevytyrittäjä

Kevytyrittäjä, often translated as "light entrepreneur" or "freelancer with simplified business ID," is a business model particularly prevalent in Finland. It allows individuals to offer services and receive payments without establishing a traditional limited liability company (Oy) or sole trader (toiminimi) status initially. Instead, they can use a service provider, often referred to as a kevytyrittäjä service, which handles invoicing, tax remittances, and accounting on their behalf.

The core concept involves the service provider issuing an invoice to the client on behalf of the kevytyrittäjä. The client pays this invoice to the service provider, who then deducts their fee, taxes, and other mandatory contributions (like pension and unemployment insurance) before transferring the remaining net income to the kevytyrittäjä's personal bank account. This significantly simplifies the administrative burden for the individual, making it an attractive option for those starting out, working part-time, or undertaking occasional projects.

Kevytyrittäjyys offers flexibility and a lower barrier to entry for entrepreneurship. It avoids the initial setup costs and ongoing accounting complexities associated with traditional business structures. However, it's important to note that kevytyrittäjä is not a legal business form in itself but rather a way of operating a business. The individual is still considered an entrepreneur for tax and social security purposes. The service provider acts as an intermediary, facilitating the financial transactions and compliance.