Enormous number of new limited liability companies

The new Finnish Limited Liability Companies Act has now been in force for just over one year. During that time, the Trade Register has registered nearly 60% more limited liability companies than in the 12 months preceding the entry into force of the Act.

A significantly larger number of new businesses have been established in the past year. We have for instance registered 4% more private traders than the year before. Regarding the most common types of business, only the number of registered general partnerships and limited partnerships has fallen.

Most new limited liability companies have a small amount of share capital

The new Limited Liability Companies Act entered into force on 1 September 2006. The purpose was to produce a clear, comprehensive and flexible act, and to increase opportunities for Finnish limited liability companies.

The minimum share capital was also reduced from 8,000 to 2,500 euros: almost 70% of new limited liability companies have now been incorporated with a minimum capital. The majority of all limited liability companies (about 90%) have a share capital of less than 10,000 euros. The highest amount of share capital registered for a limited liability company is 992,444, 479.13 euros.

As a result of the new Act, a share does no longer have to have a nominal value: 83% of new limited liability companies have chosen shares without a nominal value.

For further details, please contact the Trade Register’s Advisory Service on + 358 (0)9 6939 5900.