keskiviikko 20. tammikuuta 2010

Come and establish a company in Finland... OR NOT!

I've been thinking and weighing some facts about establishing a company here in Finland. Currently the deal goes like this:

- if you make profit, 26% of it goes to taxes (government and municipality)

- you have to carry all the risks on your shoulders

- if you don't make enough profit, neither the government nor the municipality is there to help or support you, you'll have to make it on your own

- you still have to pay the place's rent, the water + eletricity + internet bill and all other expenses

- you'll also have to LIVE with the money you have earned, which sometimes may be negative

Now the government (more specifically the Green League's representative Anni Sinnemäki) is planning on adding the taxes so that instead of paying the good ol' 26%, you'd have to give 47% away of your earnings. And this new 21% must be given from the money you pay yourself to be able to LIVE. And it is taken only from the companies that aren't listed in the stock (i.e. small ones).

So, if you are planning on establishing a company in Finland, I very strongly recommend not to. This is nothing but a tax and bureaucracy paradise. The government has been recommending to establish a company for a long time, but this time it clearly shows that some of them want to add the difficulty of running a company to new levels.

There are going to be lots of quit enterpreneurs if the law passes through and takes effect. If you make profit in Finland, the government and the municipality want some half of it, but if you fail running it, you'll be punished by months without money (normally you'd get the joblessness support ~400 € / month minimum) after declaring bankrupcy. And you'd still have those unpaid expenses in your account. No wonder Finnish people commit suicides so often ;)