Guidance for aspiring entrepreneurs

The startup grant is support granted to individuals transitioning to full-time entrepreneurship in the early stages of business. It's not intended for running the business but rather to secure the livelihood of the aspiring entrepreneur. Often, new entrepreneurs may not be able to pay themselves a full salary initially, so the startup grant provides support during this early phase of entrepreneurship.

The startup grant is issued by TE Services, and there are specific conditions for eligibility. The support is discretionary, meaning it's not automatically granted to all applicants. Startup grant can be received only once, and the application must be submitted through TE Services' online service (Oma-Asioinnissa) before the company is established. Business Kemi's business advisors also assist with any questions related to the startup grant.

When you've received the decision on Start-Up Grant from TE Services and you've already progressed with the founding matters to the point where the company can officially be established, it's time to fill out the so-called incorporation documents, which are usually done electronically nowadays. This is a concrete moment for many aspiring entrepreneurs in the process of founding their company.

In the incorporation notification, you inform the Finnish Patent and Registration Office (PRH) as well as the Tax Administration of various registers. This makes your company an official entity. However, being part of these registers also entails various reporting and payment obligations.

New entrepreneurs generally need to register with the Trade Register (PRH). Additionally, any business, agricultural, or other income-generating activity needs to be registered with the Prepayment Register, while a business subject to VAT should be registered in the VAT Register. If you are regularly paying wages as an employer, you need to register with the Employer Register. All these three registers are maintained by the Tax Administration.

Fortunately, you can register with all these registers with one single notification through the YTJ electronic service. In the same service, you'll also report any future official changes to your company. A business advisor can assist you in drafting the incorporation notification.

When establishing a company, it's essential to note that you'll receive your business ID immediately or within a few days of submitting the incorporation notification. However, the registration of the company in different registers can take time, sometimes even weeks, so the business operations may not commence immediately after submitting the notification.

If you don't have accounting and tax expertise yourself, and especially if you lack interest in the subject, it's wise to hire an accountant. An accountant may not bring in money for the entrepreneur, but with their expertise, they can save a substantial amount of the company's funds. Because business operations involve various reporting and payment obligations, it's essential for the company to have a knowledgeable party handling this statutory obligation.

Even though you hire an accountant, it's important to remember that ultimately, the entrepreneur always bears responsibility for their own business. Therefore, it's at least advisable for a new entrepreneur to familiarize themselves with the official obligations of business operations.

Once the initial steps have been completed and the accounting obligations are taken care of, it's time to focus on essential purchases for the business.

At this stage, the startup activities are usually already in motion: agreements are made for leasing or purchasing premises, ensuring smooth operation startup with various equipment and inventory purchases, and planning and ordering initial marketing efforts.

Compulsory YEL

Entrepreneurs must take care of their own pension and social security. For this purpose, there is an entrepreneur's pension insurance, YEL insurance. It is a statutory, or mandatory insurance practically for all entrepreneurs (including light entrepreneurs), whose insurance conditions are met. YEL insurance must be obtained within six months of starting operations.

YEL insurance is obtained from the pension insurance company of your choice, of which there are four in Finland: Elo, Ilmarinen, Varma, and Veritas. The price of the insurance cannot be negotiated. Obtaining insurance is possible with online banking credentials on the websites of these insurance companies.

Other Insurances

In addition to YEL insurance, depending on the company's business, it may be advisable to obtain other insurances that protect the company and its operations. These voluntary insurances can be obtained from other insurance companies, and it is advisable to always compare prices.

Once your company is registered and the necessary acquisitions and contracts to start operations are in place, the life of an entrepreneur begins!

To ensure that your business develops from the very beginning, alongside the daily operations, it's essential to allocate time for development.

Networking and exchanging experiences with other entrepreneurs are effective ways to grow as an entrepreneur. There are various networks for small businesses in the area. Kemi Entrepreneurs also offer mentors for budding entrepreneurs—a great way to exchange ideas with experienced professionals and enhance your entrepreneurial skills.