liikelait

Liikelaitos, commonly referred to as liikelait, is a type of municipal enterprise used in Finland to organize and deliver public services. A liikelaitos is a public-law entity that operates within a municipality or joint municipal authority and has its own budget and accounting, while remaining under the ownership and overarching control of the municipality.

Legal status and governance

A liikelaitos is created by a decision of the municipality and is typically managed by a board or equivalent governance body appointed by the municipal council. It has a degree of operational autonomy, including its own financial statements, but it is not a private company. The municipality exercises oversight through budgeting, reporting requirements, and auditing. Liikelaitokset are generally included in the municipal administration and their finances are integrated into the municipality’s consolidated accounts.

Functions and services

Liikelaitokset are chosen for the delivery of essential public services where stable, professional administration is desired. Common areas include water supply, wastewater management, waste management, public transportation, electricity or energy distribution, and various cultural or municipal-cultural services. The aim is to provide reliable public services with clear pricing and accountability.

Financing and tax treatment

Funding typically comes from service fees paid by users, subsidies from the municipality, and, in some cases, grants. Profits or surpluses are usually reinvested in the service or returned to the municipality’s finances rather than distributed to private owners. Liikelaitokset operate under public procurement and accounting rules and generally have a tax status favorable to public entities, distinguishing them from private-sector corporations such as limited companies (osakeyhtiöt).

Relation to other forms

Municipalities may also establish osakeyhtiöitä (limited companies) to deliver services with greater market-style operations or independence. In such cases, ownership remains with the municipality but governance and financial arrangements differ from those of a liikelaitos.