filiaali

Filiaali is a term used in Finnish business terminology to refer to a branch or filial office of a company that operates at a location separate from its head office. A filiaali is typically not a separate legal entity; rather, it operates under the parent company's legal framework, with the parent company bearing ultimate responsibility for its obligations. The concept is common in Finnish corporate and tax contexts as a way to describe an established presence in a different location.

The main distinction is between a filiaali and a subsidiary (tytäryhtiö). A subsidiary is generally a separate legal entity, often a limited liability company, owned by the parent and with its own liability and tax status. A filiaali, in contrast, does not create a separate legal entity in most cases; its activities are usually consolidated with the parent company’s accounts, and profits are generally taxed as part of the parent’s tax base or under permanent establishment rules, depending on the jurisdiction.

Registration and regulation typically require some formal steps. In Finland, establishing a filiaali may involve registration with the Trade Register and compliance with tax authorities, including VAT if applicable. The filiaali may need local representation and adherence to local employment and commercial laws, with financial reporting aligned to the parent company’s consolidated statements.

Filiaali is commonly used by banks, retail chains, and service providers seeking a local presence for sales, customer service, or distribution without creating a separate legal entity. The term is also used in international contexts to describe a foreign company’s branch operating in Finland.