sivuliikkeit

Sivuliike is a Finnish term that translates to "branch establishment" or "foreign branch" in English. It refers to a business operation that is an extension of a parent company located in a different country. Essentially, it's a way for a foreign company to establish a physical presence and conduct business within Finland without creating a separate legal entity like a subsidiary.

The establishment of a sivuliike is governed by Finnish company law. The parent company remains legally responsible for the operations of its sivuliike. This means that if the sivuliike incurs debts or liabilities, the parent company is obligated to cover them. Sivuliikkeet are required to register with the Finnish Patent and Registration Office and are subject to Finnish taxation laws. They must also appoint a local representative who is responsible for handling legal and administrative matters within Finland.

The primary advantage of operating as a sivuliike is often the simplicity and speed of establishment compared to forming a subsidiary. It can be a less complex and costly way to enter the Finnish market. However, the unlimited liability of the parent company is a significant consideration. Decisions regarding the formation and operation of a sivuliike typically involve careful legal and financial planning to ensure compliance with all relevant regulations.