Company formation in the Nordics: Finland, Sweden or Norway?

Which one we recommend

The three company forms work much the same way: limited liability, one shareholder is enough, and the same person can own the company and sit on its board. What separates them for a founder abroad is the board residency rule, the share capital and the currency. We recommend by those:

If no one on your side lives in Europe, compare the Nordics with the Baltic countries, which set no residency rule for directors at all.

Finland, Sweden and Norway side by side

The key facts for a private limited company in each country, taken from our country pages:

Private limited companies in Finland, Sweden and Norway compared

Factor	Finland (Oy)	Sweden (AB)	Norway (AS)
Minimum share capital	None (€0 is allowed)	SEK 25,000, paid in before filing	NOK 30,000, paid in before filing
Board residency	One board member in the EEA	Half the board in the EEA	Half the board in the EEA, UK or Switzerland
Corporate income tax	20%	20.6%	22%
Dividend withholding, private shareholder abroad	30%, treaties may reduce it	30%, treaties may reduce it	25%, treaties may reduce it
Standard VAT rate	25.5%	25%	25%
VAT registration threshold	€20,000 a year	SEK 120,000 a year	NOK 50,000 in 12 months
Register processing	Usually within 3 weeks	Usually within 3 weeks	Usually within 3 weeks
Annual accounts	Within 8 months of year end	Within 7 months of year end	By 31 July
Operational company package (MAXCORP)	From €4,800	From €4,800	From €4,800

Register processing is our planning figure for filings like ours, not a legal deadline; each register publishes its current times: Finland (PRH), Sweden (Bolagsverket), Norway (Brønnøysund). Displayed prices are indicative professional fees excluding VAT.

The real hurdle: who sits on the board

Nordic company law asks where the people running the company live. Citizenship does not matter, only permanent residence:

In practice this decides the country for many founders. A founder living in the EU can take the board seat in any of the three. A founder living outside Europe needs a board member who lives in the EEA, or an exemption, and an exemption takes time and is decided case by case.

Profit tax and dividend tax together

All three countries tax company profit every year, paid out or not: 20% in Finland, 20.6% in Sweden and 22% in Norway. There is no Estonian-style deferral until distribution.

When the profit is paid to a private shareholder living abroad, the company withholds tax on the dividend: 30% in Finland and Sweden and 25% in Norway under domestic law. Tax treaties often cut that rate, and a corporate shareholder in the EU or EEA can often receive dividends without withholding. Before treaty relief, a non-resident private owner keeps about 56 of every 100 of profit in Finland and Sweden and about 58 in Norway.

For a shareholder living in the same country the rules are different again, and your own country taxes the dividend too, with credit for the tax withheld. Check your case with a tax adviser before you choose.

Forming and running the company from abroad

All three companies can be formed without you travelling to the country. What differs is who signs and how the capital is shown:

Each company needs a registered office in its country. Our packages include an address in Helsinki, Stockholm or Oslo, and in Sweden we can provide the service recipient the Companies Registration Office asks for when no representative lives there.

Banking takes the same patience as anywhere in Europe: local banks decide on each company themselves. Our guide to opening a business account remotely explains the options.

How MAXCORP sets it up

MAXCORP forms companies in Finland, Sweden and Norway, either as a new registration (from €2,500) or as an operational, ready-made company (from €4,800) with an address, bank account support and accounting in place. A ready-made Swedish or Norwegian company already has its share capital paid in.

Tell us where you and your board live, where your clients are and how you plan to use the profit. We tell you which Nordic country fits, or whether a Baltic company would serve you better.