osakeyhtiömuotoa

Osakeyhtiömuotoa refers to a specific form of business organization in Finnish law, known in English as a limited liability company (Ltd.). It is the most common corporate structure among medium and large enterprises in Finland, offering shareholders limited liability for the company's debts up to the amount of their share capital contributions. The legal personality of an osakeyhtiö, or Oy, is distinct from its owners, which means that creditors can claim against company assets rather than the personal assets of its shareholders. Ownership in an Oy is represented by shares, and shareholders elect a board of directors that manages the company’s affairs. The board has fiduciary duties to act in the company’s best interests and is, in turn, accountable to a supervisory board in larger corporations, although this is not mandatory. Operationally, the company must maintain a registered office in Finland, publish an annual report, and comply with strict accounting and auditing requirements. Taxation of an Oy involves corporate income tax on net profits, with dividends distributed to shareholders subsequently taxed as personal income. Compared to other Finnish forms such as kommandiittiyhtiö (limited partnership) or toordin (sole proprietorship), the osakeyhtiö provides limited liability and a formalized governance structure, making it attractive for businesses seeking to raise capital or limit exposure to personal risk. However, the same formal requirements can impose greater administrative costs and regulatory burdens.