Siirry suoraan sivusisältöön
Support and Benefits to foreign companies investing Finland


The following text is from Business Guide 2008, produced by Invest in Finland:

Public financing is primarily intended for Finnish enterprises (= those registered in Finland). The principal objects of financing are investments by small and medium-sized businesses, as well as various development, research and product development projects. Funding may take the form of a subsidy, loan or guarantee. The enterprise’s equity may be strengthened by means of capital investment, loans and guarantees. Foreign-owned companies are eligible for government incentives on an equal footing with Finnish-owned companies. Support is given in the forms of cash grants, loans, tax benefits, equity participation, guarantees and employee training.

Business aid

In Finland, government-administered aid to business is mainly aimed at improving the long-term competitiveness of small and medium-sized enterprises (SMEs). Business aid to companies is coordinated by Employment and Economic Development Centres (T&E Centres), whose 15 regional offices provide consulting and training as well as financial aid. The centres are also a significant channel for EU finance. Public funding is allocated to projects expected to contribute considerably to project implementation, business success and employment. The T&E Centres make the decisions on aid to business, and pay in arrears the aid granted as the project in question is being implemented.

Investment aid can be granted to firms, especially SMEs, in the regional development areas. These areas are prioritised into three categories, with the most needy areas getting highest priority. In addition to investments, aid to business development can also be granted for other development projects, in case they are deemed to considerably improve or facilitate the firm’s establishment and operation, business knowhow, internationalisation, product development
or process enhancement.

For start-up companies, there are subsidies for establishing and expanding business operations. This aid helps cover salary costs of the new entrepreneur and the first employees, expenses for professional services needed by small innovative firms as well as rental costs for premises and equipment. It is available up to the first 24 months of operation with an aid ceiling of 50% of eligible costs.

Transport aid may be granted for deliveries of goods produced by SMEs to sparsely populated areas. Sparsely populated areas means the provinces of Lapland, Northern Ostrobothnia, Kainuu, Northern Karelia, Southern Savo and Northern Savo. The amount of aid depends on the length of transportation and varies from 7 to 29% of actual transportation costs. Energy subsidies can be granted to companies for investments in energy efficiency and conservation.Investments promoting energy conservation and the use of renewable domestic energy resources, such as biofuels, can make a company eligible for these subsidies, up to 30% of investment costs.

The aid ceiling for licensed expert evaluations of energy conservation possibilities is 40% of survey costs. T&E Centres arrange and part-finance firmspecific employee training in cooperation with employers, and also provide companieswith advice on registration issues and location choices. Firms can often set themselves up on favourable terms in industrial premises provided by municipalities around the country. In addition, most small and medium-sized companies setting up in Development area 1 are entitled to tax relief in form of a higher depreciation rate on fixed assets.

Loans and guarantees by Finnvera

The state-owned financing company Finnvera plc improves and diversifies the financing possibilities of companies by granting loans and guarantees and by export financing services. Finnvera’s services include export credit guarantees and special guarantees ensuring that the financing schemes of exports are internationally competitive. Finnvera’s services cover all development stages of an enterprise, form loans and guarantees to start-ups and micro-enterprises to export credit guarantees to large exporters and their financiers.

R&D incentives by Tekes

Funding by Tekes, the Finnish Funding Agency for Technology and Innovation, is intended for challenging and innovative projects potentially leading to global success stories. Tekes funding is aimed at companies and other organizations operating in Finland and actively developing their technology, services and business operations. The funding also supports the establishment and expansion of start-up companies.

EU-funded support

The EU-funded programmes aim to diversify the economic and business structure and to improve employment. This is done by supporting the establishment and development of small and medium-sized enterprises and the expansion of their activities. Financing is directed to projects developing the competitiveness, know-how and operating environment of the SME sector, with a special emphasis on start-up businesses and service sector companies.

Further information:

www.investinfinland.fi
www.tekes.fi
www.finnvera.fi
www.te-keskus.fi