osakeyhtiöt

Osakeyhtiö, abbreviated Oy, is the Finnish term for a limited liability company. It is a separate legal entity whose shareholders’ liability is limited to their capital contributions. The form is the most common corporate structure in Finland for businesses of various sizes.

There are two main variants: private osakeyhtiö (Oy) and public osakeyhtiö (Oyj). A private Oy can be founded by one or more shareholders and cannot publicly offer its shares. It requires a minimum share capital of 2,500 euros, and the transfer of shares is governed by the company’s articles of association. A public Oy (Oyj) may offer shares to the public and is subject to stricter disclosure and governance requirements; it historically requires a minimum share capital of 80,000 euros. Publicly traded companies commonly use the suffix Oyj in their registered name.

Formation and governance: An Oy is formed by registration in the Finnish Trade Register, with Articles of Association and paid-in share capital. Governance typically involves a board of directors (hallitus) and, in many cases, a managing director (toimitusjohtaja). The shareholders’ meeting (yhtiökokous) elects the board, approves financial statements, and decides on profits and dividends. Public OyJs operate under additional securities market regulations and reporting standards.

Liability and taxation: Shareholders are not personally liable for the company’s debts beyond their capital contribution. The company is subject to corporate income tax on its profits (the standard rate is 20%). Dividends are taxed to shareholders according to applicable tax rules.

Accounting and reporting: Oy companies prepare annual accounts and financial statements in accordance with Finnish accounting standards. Larger or public companies face more extensive reporting and audit requirements, while smaller private Oy entities may have more limited audit obligations.