Toiminimi

Toiminimi - means that you carry out business activities in your own name. From a legal point of view, you and your business are one and the same. This means that you make decisions independently, but you are also personally liable for the business’s debts with all your assets.

Registration takes place via the centralised state system YTJ (Yhteisyritystietojärjestelmä), which brings together data from the Commercial Register and the Tax Administration.

The best way to set up a business: Practical advice

Simplified accounting: Unlike a limited liability company (Osakeyhtiö), a sole trader is permitted to use simplified accounting (yhdenkertainen kirjanpito), based solely on income and expenditure. You can do this yourself in Excel, but it’s better to use ready-made services for entrepreneurs (e.g. Holvi, OP Kevytyrittäjä, UKKO) or hire an accountant (tilitoimisto). This will save you a lot of hassle.  

Don’t forget about YEL: As soon as your net business income (työtulo) exceeds the state-set limit (around 9,000–10,000 euros per year), you are obliged to take out self-employed persons’ pension insurance (YEL). This forms the basis of your future pension and social security benefits.

Keep your finances separate: The law does not require a Toiminimi to open a separate business bank account, but it is strongly recommended that you at least set up a separate personal account for business transactions. This will make it much easier to keep your accounts and report to the tax authorities.

All the necessary links

• YTJ.fi — The main portal for registering a business, updating details and searching for available company names.
• PRH.fi — Patent and Registration Office. Here you can check the rules for choosing a name and find out the processing times for applications.
• Vero.fi — Tax Administration. All the information on VAT (ALV), income tax and tax deductions for business owners.
• Suomi.fi — A government portal with an excellent section for budding entrepreneurs.
• Uusyrityskeskus — A network of support centres for new entrepreneurs. They offer free advice, help you draw up a business plan and apply for the Start-up Grant (Starttiraha). Important: if you plan to apply for Starttiraha, contact them BEFORE registering your Toiminimi!