Osakeyhtiöihin

Osakeyhtiöihin refers to the Finnish form of the widely used corporate structure known as a limited liability company. In Finland, osakeyhtiö (Oy) is a separate legal entity whose owners, the shareholders, are generally not personally liable for the company’s debts beyond their paid-in capital. The two main variants are private osakeyhtiö (Osakeyhtiö, Oy) and public osakeyhtiö (Julkinen osakeyhtiö, Oyj). Private companies are common for small and medium-sized enterprises, while public companies are typically used for larger operations or those seeking broader access to capital.

Formation and governance

A Finnish osakeyhtiö is formed by drafting articles of association, appointing initial directors, and registering with the Finnish Trade Register. The company’s operations are governed by the shareholders at annual meetings, and day-to-day management is handled by a board of directors and a chief executive officer or managing director. Larger or more scrutinized entities may require an auditor. Share transfers are generally possible, but some osakeyhtiö use restrictions or share classes to control ownership.

Liability, reporting and taxation

Shareholders’ liability is limited to the amount they have invested in the company. The company must maintain proper accounting records and prepare annual financial statements in accordance with Finnish accounting standards. Depending on size, audits may be required. Finnish osakeyhtiö are subject to corporate income tax on profits and to value-added tax where applicable; distributions of profits to shareholders may be taxed at the shareholder level as well.

Public use and alternatives

Osakeyhtiö is a common form for many business activities in Finland, suitable for ventures ranging from start-ups to established firms. It competes with other business forms such as sole proprietorships (toiminimi) and partnerships (osuuskunta, kommandiittiyhtiö) depending on goals, liability preferences, and capital needs.