Last edited by HKI_Reporter; 9th-March-2008 at 09:07 PM.
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A few more basic things about starting your own business.
This is a quote from a Finnish site: Infopankki - Establishing a business
The stages of establishing a business, in brief:
- A good business idea
- Preliminary business plan
- Arranging of finance
- Choice of company form and name
- Clarification of licence to trade
- Declaration of association to the trade register and the tax authorities
- Statutory insurances
- Organising of book-keeping
If you want to establish a business, consider carefully whether your business idea is a good one. Consider too, whether you have sufficient professional skill and experience, and how you will arrange the financing. New enterprise centres provide help and expert advice from the shaping of the business idea onwards.
After this a preliminary business plan is drawn up, the purpose of which is to establish the profitability of the intended business and its chances of success. This is of benefit both to the entrepreneur and to the expert who is assisting with the business evaluation. A thorough business plan is always required when seeking finance.
Other matters to be considered when establishing a business include the company form, the name of the company and choice of the field of activity, declarations to the authorities and fees payable, organisation of book-keeping and payment of share capital in the limited company.
Factors influencing the choice of company form include the number of founders, capital requirement, division of responsibility and decision-making, financing and taxation. The various company forms in Finland are: proprietorship (toiminimi); partnership (avoin yhtiö); limited partnership (kommandiittiyhtiö); limited company (osakeyhtiö) and cooperative association (osuuskunta). If you want to establish a business larger than a proprietorship and are considering the various company forms it is highly advisable that you contact your business advice centre.
Infopankki - Company forms
Form of company:
Proprietorship (toiminimi): The simplest (and most popular) way to start in business is to operate as a private entrepreneur using a company name. Decision-making and responsibility in the company belong with the entrepreneur, and the company may employ workers as in other forms of business. For part-time entrepreneurship it is often beneficial to start as a proprietorship. Starting business in this way is speedy and uncomplicated.
Partnership (avoin yhtiö): A partnership is formed when two or more individuals agree to it by signing a partnership agreement. The partners have equal status in all the company’s operations and are personally responsible for company decisions, liabilities and debts.
Limited partnership (kommandiittiyhtiö): A limited partnership differs from an ordinary partnership in that in addition to one or more accountable partners there is at least one sleeping partner.
Limited company (osakeyhtiö): Establishment of a limited company requires at least one individual or corporation, and its minimum share capital is 2,500 euros. The share capital is divided into shares: a shareholder’s voting power, profit and liability depend on how many shares he owns.
Cooperative association (osuuskunta): A corporate enterprise that carries out economic operations in support of its members’ finances and livelihood. A minimum of 3 persons can form a cooperative association, which may include individual members or companies, each having one vote in cooperative association meetings. The liability of cooperative association members is limited to their investment of share capital.
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