Opening an account in Finland for your business is maybe an easy task for some specific companies, but for others it is not that easy. In this article we will look at various banking alternatives for Finnish companies. These alternatives include both Finnish and foreign banks.
If you want to find the cheapest or best business bank account for your Finnish company then you have come to the right article. We also provide a solution for companies that seemingly cannot get a business bank account.
To open a Finnish business bank account, you need to follow these steps:
- Incorporation of the company
- Select a bank on our list below
- Apply for the bank account
- Receive your bank account details
Easy Finnish business bank account
Finnish companies must have a business account, this is stated on the tax authority's website. However, some exclusions might apply for some company types. You might think that you can avoid having a bank account and just use cash, but that is not a good solution in the long run, and you run a lot of risks by doing so.
Business accounts go under different names, but you should know that no matter what it is called, it is the same account. It is a normal bank account in the name of your company, so it is legally owned by your company and not you personally.
If you insist on getting a local IBAN number, then Holvi is probably the best solution for you as a Finnish company. They have very good prices, and you can create an account very fast. If Holvi is not your thing or they have denied you, then we have some other easy solutions.
Getting denied by banks is not a pleasant thing, and therefore you should try to open a business bank account at Intergiro. They are a bit more expensive than Holvi, but they provide services to companies that can (sometimes) not get accepted by Holvi, Revolut, and Wise.
Other easy solutions are Revolut and Wise. These two international fintech banks or institutions are accepting Finnish companies as clients, and you can have an account ready really fast if you choose them. They are a bit strict in regards to giving business bank accounts to some companies operating in certain industries. Therefore we suggest that you create (or apply for) an account in all the suggested banks.
Cheap Finnish business bank account
There are plenty of opportunities for Finnish companies to get cheap business bank accounts. This is especially the case if these companies do not need customer support in Finnish or local offices. We have already covered some of the options in the other paragraph, but now we will do it in more detail.
Usually, the banks want you to pay for the opening fee or for having the account. Some combine the two fees and charge you both. In order to find all the cheap banks, we have looked at both Finnish and non-Finnish (foreign) banks that accept Finnish companies.
If you want the absolutely cheapest option, then Revolut Business is probably the best option. Revolut allows you to open a free business bank account (update: minimum 10 EUR per month), and you can choose to upgrade your package. They have different packages, the most expensive costing 100 EUR per month. You will have to have a lot of acitivity to want to upgrade to that package.
Another option is Wise Business. They provide accounts for 50 EUR as a one-time payment, and after that you only pay for what you use. This might be a good solution for companies that want a quick account without monthly fees.
Holvi is also a relatively cheap option for Finnish companies, and you should definitely try to apply for an account there if the above-mentioned solutions are not for you. Their prices start at 9 EUR per month.
One problem with the cheap accounts is that the do not allow specific companies in specific industries to become clients. Therefore, you need another solution. Usually, we recommend those kinds of companies to take a look at Intergiro. They are relatively cheap for the service the provide.
Free Finnish business bank account
It is possible to get a free Finnish business account if you have a good relationship with you current bank. Having a good relationship allows you to bargain and get a very good (free or low) price for a business bank account.
However, we know that this does not work for most people. Therefore, we suggest that you look for free alternatives outside of the country. Revolut and Wise are very good candidates for free business accounts for Finnish companies.
Can I use my personal bank account instead?
Some company types must have a dedicated company bank account. However, there might be some Finnish rules that exempt certain company types (such as freelancers). Even if you are not required by law to have a dedicated company account, then you should probably create one anyway as it makes accounting and other things much easier.
Even if you are allowed to use your personal account for business transactions b law, then the bank can still close your personal account as it is against many banks' terms of services to use a personal account for non-personal things.
Why do you need a bank account for your company?
In general, there are 2 reasons:
- It might be required by law
- It is generally beneficial to split personal and business activities
What are the disadvantages of a non-Finnish bank account?
Some of the banks mentioned and recommended here are not necessarily from Finland or located in Finland. This makes some people wonder about the potential disadvantages.
Since Finland is already using IBAN numbers internally, it should not be a problem for a Finnish company to have a non-local IBAN number. It might raise some suspicion from customers if they have to transfer money abroad, but this can easily be explained.
Generally speaking, you should not have any trouble using foreign bank accounts as your company bank account, but if you require things such as local customer support, the ability to go to a local branch or a specific feature, then you must search for a more expensive Finnish bank.
There should not be any issues with paying the corporate tax or VAT from a non-Finnish bank account. Please confirm this with Vero (Finnish Tax Authority).
Why do business accounts cost money?
Not all Finnish accounts are free (if any), and this is the result of the bank having many expenses. These expenses come from the fact that there is some regulation saying that they need to know their customers. This takes people to do, and people cost money. The cost is passed on to you as a company, because individuals are not used to paying for bank accounts.
What is the price of a Finnish company bank account?
There are many providers that cater to the Finnish market, and therefore it is difficult to give a general statement about the price of a Finnish company bank account. However, we can say that there are some cheap options (by European standards) and some free options available for Finnish companies.
