yhtiö

Yhtiö is the Finnish term for a business entity or company. In Finnish law, it is a general umbrella term that covers several corporate forms formed to carry out commercial activities. The word is commonly used to refer to more formal entities such as osakeyhtiö (Oy), but it also encompasses partnerships such as avoin yhtiö (Ay) and kommandiittiyhtiö (Ky). Yhtiö differs from a sole proprietor, or toiminimi, in that a yhtiö is a separate legal entity from its owners.

The most common form is osakeyhtiö, or Oy, a limited company. An Oy has its own legal personality; owners are shareholders, and their liability is generally limited to the amount they have invested in the company. Shares can be transferred among investors, and the company is governed by a board of directors, with a managing director or chief executive officer often appointed to run day-to-day operations. The company’s name ends with Oy for private limited companies or Oyj for public ones. Osakeyhtiö is regulated by the Finnish Companies Act and must be registered in the Finnish Trade Register, maintained by the Patent and Registration Office (PRH).

Two other yhtiö forms are opened yhtiö and kommandiittiyhtiö. In avoin yhtiö, two or more partners share unlimited liability for the debts of the partnership, and all partners may participate in management. In kommandiittiyhtiö, there are general partners with unlimited liability and one or more limited partners whose liability is limited to their capital contribution. Such structures are governed by specific statutes and a yhtiöjärjestys (articles of association) that outlines capital, governance, and profit-sharing.

In practice, yhtiö denotes the basic legal framework for conducting business in Finland, supporting limited liability, defined governance, and formal registration.