osakeyhtiön

Osakeyhtiö, abbreviated Oy, is the most common form of limited liability company in Finland. It is a separate legal entity from its owners, and shareholders’ liability for the company’s debts is limited to the amount they have paid into the share capital. Osakeyhtiö is suitable for small and large businesses and can be privately held or publicly listed.

Formation and capital requirements are defined by the Finnish Companies Act. A private limited company (osakeyhtiö) typically requires a minimum share capital of 2,500 euros. The company is formed by filing the articles of association and other required documents with the Trade Register and by establishing its corporate name and registered office. Ownership is represented by shares, and shares can be transferred among investors, subject to any restrictions in the articles of association or shareholder agreements.

Governance generally involves a general meeting of shareholders, a board of directors, and, if appointed, a managing director. The board oversees management and strategic decisions, while the managing director (if present) handles day-to-day operations. Publicly listed osakeyhtiöt (Oyj) face additional regulatory requirements and reporting standards.

Taxation and accounting are handled as for other corporations in Finland. An osakeyhtiö is taxed as a separate legal entity and pays corporate income tax on its profits. Dividends to shareholders may be subject to withholding tax and personal income tax depending on residency and double taxation agreements. Companies must maintain accounting records, prepare annual financial statements, and file tax returns; larger entities may be required to have an audit.

Dissolution or liquidation ends the life of an osakeyhtiö, which can occur voluntarily or through insolvency. The form remains the standard corporate structure for Finnish businesses due to its flexibility and limited liability.