osakeyhtiö

Osakeyhtiö is the Finnish term for a limited liability company, a legal entity with its own rights and obligations separate from its owners. In Finland it is governed by the Limited Liability Companies Act (Osakeyhtiölaki). The form is used in two main variants: private limited company, abbreviated Oy, and public limited company, abbreviated Oyj (julkinen osakeyhtiö). The Oy form is the common structure for small and medium-sized enterprises, while Oyj is used for larger businesses and those that may raise capital from the public.

Capital and liability are key characteristics. A private Oy requires a minimum share capital of 2,500 euros, and a public Oy requires at least 80,000 euros. Shareholders have limited liability, meaning their financial risk is limited to the amount they have paid for their shares. Shares are generally transferable, though the articles of association or shareholders’ agreements can impose restrictions.

Governance and formation. The company is managed by a board of directors elected by the general meeting, and most Oy companies appoint a managing director or CEO to handle day-to-day operations. The general meeting is the supreme decision-making body, approving annual accounts, appointing directors, and deciding on dividends. A private Oy can be formed by one or more shareholders by filing the articles of association and necessary registrations with the Finnish Trade Register, and by establishing the required share capital.

Reporting and taxation. Oy companies must keep accounting records, prepare annual accounts, and file financial statements with authorities; size thresholds determine whether an audit is required. Finnish corporate income tax applies to profits, at a rate that has historically been 20%. Dividends are taxed under national rules for residents and non-residents, with withholding and other considerations depending on circumstances.

In practice, osakeyhtiö is the prevailing corporate form in Finland, offering limited liability for owners and flexibility for growth, financing, and governance. The company’s name suffix reflects its form: Oy for private companies and Oyj for public ones.