Finland Economy Profile - Doing Business 2019
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Doing Business 2019 Finland
Economy Profile
Finland
Page 1
Doing Business 2019 Finland
Economy Profile of Finland
Doing Business 2019 Indicators
(in order of appearance in the document)
Starting a business Procedures, time, cost and paid-in minimum capital to start a limited liability company
Dealing with construction permits Procedures, time and cost to complete all formalities to build a warehouse and the quality
control and safety mechanisms in the construction permitting system
Getting electricity Procedures, time and cost to get connected to the electrical grid, and the reliability of the
electricity supply and the transparency of tariffs
Registering property Procedures, time and cost to transfer a property and the quality of the land administration
system
Getting credit Movable collateral laws and credit information systems
Protecting minority investors Minority shareholders’ rights in related-party transactions and in corporate governance
Paying taxes Payments, time, total tax and contribution rate for a firm to comply with all tax regulations as
well as post-filing processes
Trading across borders Time and cost to export the product of comparative advantage and import auto parts
Enforcing contracts Time and cost to resolve a commercial dispute and the quality of judicial processes
Resolving insolvency Time, cost, outcome and recovery rate for a commercial insolvency and the strength of the
legal framework for insolvency
Labor market regulation Flexibility in employment regulation and aspects of job quality
Page 2Doing Business 2019 Finland
About Doing Business
The Doing Business project provides objective measures of business regulations and their enforcement across 190 economies and selected
cities at the subnational and regional level.
The Doing Business project, launched in 2002, looks at domestic small and medium-size companies and measures the regulations applying
to them through their life cycle.
Doing Business captures several important dimensions of the regulatory environment as it applies to local firms. It provides quantitative
indicators on regulation for starting a business, dealing with construction permits, getting electricity, registering property, getting credit,
protecting minority investors, paying taxes, trading across borders, enforcing contracts and resolving insolvency. Doing Business also
measures features of labor market regulation. Although Doing Business does not present rankings of economies on the labor market
regulation indicators or include the topic in the aggregate ease of doing business score or ranking on the ease of doing business, it does
present the data for these indicators.
By gathering and analyzing comprehensive quantitative data to compare business regulation environments across economies and over time,
Doing Business encourages economies to compete towards more efficient regulation; offers measurable benchmarks for reform; and serves
as a resource for academics, journalists, private sector researchers and others interested in the business climate of each economy.
In addition, Doing Business offers detailed subnational reports, which exhaustively cover business regulation and reform in different cities and
regions within a nation. These reports provide data on the ease of doing business, rank each location, and recommend reforms to improve
performance in each of the indicator areas. Selected cities can compare their business regulations with other cities in the economy or region
and with the 190 economies that Doing Business has ranked.
The first Doing Business report, published in 2003, covered 5 indicator sets and 133 economies. This year’s report covers 11 indicator sets
and 190 economies. Most indicator sets refer to a case scenario in the largest business city of each economy, except for 11 economies that
have a population of more than 100 million as of 2013 (Bangladesh, Brazil, China, India, Indonesia, Japan, Mexico, Nigeria, Pakistan, the
Russian Federation and the United States) where Doing Business also collected data for the second largest business city. The data for these
11 economies are a population-weighted average for the 2 largest business cities. The project has benefited from feedback from
governments, academics, practitioners and reviewers. The initial goal remains: to provide an objective basis for understanding and improving
the regulatory environment for business around the world.
More about Doing Business (PDF, 5MB)
Page 3Doing Business 2019 Finland
Ease of Doing Business in DB 2019 Rank
Region OECD high income
190 1
Finland
Income Category High income 17
DB 2019 Ease of doing business score
Population 5,511,303
0 100
City Covered Helsinki 80.35
DB 2019 Ease of Doing Business Score
0 100
84.64: Denmark (Rank: 3)
80.35: Finland (Rank: 17)
79.35: Iceland (Rank: 21)
78.90: Germany (Rank: 24)
77.80: Regional Average (OECD high income)
77.29: France (Rank: 32)
Note: The ease of doing business score captures the gap of each economy from the best regulatory performance observed on each of the indicators across all economies
in the Doing Business sample since 2005. An economy’s ease of doing business score is reflected on a scale from 0 to 100, where 0 represents the lowest and 100
represents the best performance. The ease of doing business ranking ranges from 1 to 190.
Rankings on Doing Business topics - Finland
2
1 11
25 28
28 34 34
43 46
55 60
72
82
Rank
109
136
163
190
Starting Dealing Getting Registering Getting Protecting Paying Trading Enforcing Resolving
a with Electricity Property Credit Minority Taxes across Contracts Insolvency
Business Construction Investors Borders
Permits
Ease of Doing Business Score on Doing Business topics - Finland
100
92.43 90.64 92.44 92.81
88.98
80.73
80 75.79
65.00 66.40
58.33
Score
60
40
20
0
Starting Dealing Getting Registering Getting Protecting Paying Trading Enforcing Resolving
a with Electricity Property Credit Minority Taxes across Contracts Insolvency
Business Construction Investors Borders
Permits
Page 4Doing Business 2019 Finland
Starting a Business
This topic measures the number of procedures, time, cost and paid-in minimum capital requirement for a small- to medium-sized limited
liability company to start up and formally operate in each economy’s largest business city.
To make the data comparable across 190 economies, Doing Business uses a standardized business that is 100% domestically owned, has
start-up capital equivalent to 10 times the income per capita, engages in general industrial or commercial activities and employs between 10
and 50 people one month after the commencement of operations, all of whom are domestic nationals. Starting a Business considers two
types of local limited liability companies that are identical in all aspects, except that one company is owned by 5 married women and the
other by 5 married men. The ranking of economies on the ease of starting a business is determined by sorting their scores for starting a
business. These scores are the simple average of the scores for each of the component indicators.
The most recent round of data collection for the project was completed in May 2018. See the methodology for more information.
What the indicators measure Case study assumptions
Procedures to legally start and formally operate To make the data comparable across economies, several assumptions about the
a company (number) business and the procedures are used. It is assumed that any required information is
readily available and that the entrepreneur will pay no bribes.
• Preregistration (for example, name verification or
reservation, notarization)
The business:
• Registration in the economy’s largest business - Is a limited liability company (or its legal equivalent). If there is more than one type
city
of limited liability company in the economy, the most common among domestic firms
• Postregistration (for example, social security is chosen. Information on the most common form is obtained from incorporation
registration, company seal) lawyers or the statistical office.
- Operates in the economy’s largest business city. For 11 economies the data are
• Obtaining approval from spouse to start a
business or to leave the home to register the also collected for the second largest business city.
company - The entire office space is approximately 929 square meters (10,000 square feet).
- Is 100% domestically owned and has five owners, none of whom is a legal entity;
• Obtaining any gender specific document for has a start-up capital of 10 times income per capita and has a turnover of at least
company registration and operation or national 100 times income per capita.
identification card
- Performs general industrial or commercial activities, such as the production or sale
of goods or services to the public. The business does not perform foreign trade
Time required to complete each procedure
activities and does not handle products subject to a special tax regime, for example,
(calendar days)
liquor or tobacco. It does not use heavily polluting production processes.
• Does not include time spent gathering - Leases the commercial plant or offices and is not a proprietor of real estate and the
information amount of the annual lease for the office space is equivalent to the income per
capita.
• Each procedure starts on a separate day (2
procedures cannot start on the same day) - Does not qualify for investment incentives or any special benefits.
- Has at least 10 and up to 50 employees one month after the commencement of
• Procedures fully completed online are recorded operations, all of whom are domestic nationals.
as ½ day - Has a company deed that is 10 pages long.
• Procedure is considered completed once final
document is received The owners:
• No prior contact with officials - Have reached the legal age of majority. If there is no legal age of majority, they are
assumed to be 30 years old.
Cost required to complete each procedure (% of - Are sane, competent, in good health and have no criminal record.
income per capita) - Are married and the marriage is monogamous and registered with the authorities.
- Where the answer differs according to the legal system applicable to the woman or
• Official costs only, no bribes man in question (as may be the case in economies where there is legal plurality), the
• No professional fees unless services required by answer used will be the one that applies to the majority of the population.
law or commonly used in practice
Paid-in minimum capital (% of income per
capita)
• Funds deposited in a bank or with third party
before registration or up to 3 months after
incorporation
Page 5Doing Business 2019 Finland
Starting a Business - Finland
Standardized Company
Legal form Private Limited Company (Oy)
Paid-in minimum capital requirement EUR 2,500
City Covered Helsinki
Indicator Finland OECD high Best Regulatory
income Performance
Procedure – Men (number) 3 4.9 1 (New Zealand)
Time – Men (days) 17 9.3 0.5 (New Zealand)
Cost – Men (% of income per capita) 0.8 3.1 0.0 (Slovenia)
Procedure – Women (number) 3 4.9 1 (New Zealand)
Time – Women (days) 17 9.3 0.5 (New Zealand)
Cost – Women (% of income per capita) 0.8 3.1 0.0 (Slovenia)
Paid-in min. capital (% of income per capita) 6.1 8.6 0.0 (117 Economies)
Figure – Starting a Business in Finland and comparator economies – Ranking and Score
DB 2019 Starting a Business Score
0 100
93.27: France (Rank: 30)
92.52: Denmark (Rank: 42)
92.43: Finland (Rank: 43)
91.19: Regional Average (OECD high income)
90.72: Iceland (Rank: 59)
83.58: Germany (Rank: 114)
Note: The ranking of economies on the ease of starting a business is determined by sorting their scores for starting a business. These scores
are the simple average of the scores for each of the component indicators.
Page 6Doing Business 2019 Finland
Figure – Starting a Business in Finland – Procedure, Time and Cost
Time (days) Cost (% of income per capita)
0.9
16
0.8
Cost (% of income per capita)
14
0.7
12
0.6
Time (days)
10
0.5
8
0.4
6 0.3
4 0.2
2 0.1
0 0
1 2 *3
Procedures (number)
* This symbol is shown beside procedure numbers that take place simultaneously with the previous procedure.
Note: Online procedures account for 0.5 days in the total time calculation. For economies that have a different procedure list for men and
women, the graph shows the time for women. For more information on methodology, see the Doing Business website
(http://doingbusiness.org/en/methodology ). For details on the procedures reflected here, see the summary below.
Page 7Doing Business 2019 Finland
Details – Starting a Business in Finland – Procedure, Time and Cost
No. Procedures Time to Complete Associated Costs
1 Deposit the paid-in share capital in a bank; pay the registration fee and get 1 day no charge
a receipt
Agency : Bank
According to the Companies Act, the paid-in share capital must be paid in full into the
company's bank account. To open a bank account, the company must provide at least a
copy of memorandum of association. Normally also following materials need to be
provided to the bank when opening an account:
- The minutes of the meeting of the Board of Directors including a resolution of opening
an account and identifying persons authorized to use the bank account to be opened,
- A brief description of the nature of company's future banking transactions,
- A description of the company's field of business,
- Sufficient information regarding the shareholders and the directors of the company,
- Copies of the passports regarding the persons authorized to use the bank account
The subscription price may be paid to a bank account outside of Finland. However, the
bank account should correspond to a bank account of a Finnish depository bank or a
branch of a foreign credit institute in Finland.
The receipt of the bank regarding the payment of the share capital is sufficient in order to
register the company. However, if an auditor is elected in accordance with applicable law,
the auditor shall provide a statement confirming the payment of the share capital.
2 Submit a single start-up notification form to the National Board of Patents 16 days (1 day for EUR 380 (start-up
and Registration (PRH) and the Tax Administration as well as VAT company notification in paper
registration. registration and 15 form) and EUR 330
Agency : NBPR and the Tax Administration days for tax (online start-up
A basic declaration to the Trade Register must be filed (in either Finnish or Swedish) as
requirements) notification of a
the National Board of Patents and Registration specifies. For each type of business
limited liability
association, a separate basic declaration form must be used. The forms are available on
company)
the National Board of Patents and Registration, regional tax offices, local tax offices,
Centers for Economic Development, Transport and the Environment ("ELY" Centers),
local register offices, and Chamber of Commerce and Enterprise Agencies. All
registrations to the Trade Register and to the Tax Administration are performed with the
same basic declaration.
Moreover, since December 2012, it has been possible to file a start-up notification online
for EUR 330. In order to be able to use the online system, it is necessary to obtain an ID
with the National Board of Patents and Registration of Finland.
If the company has employees, the company must be entered into the Employer Register,
according to Section 31 of the Preliminary Taxation Act, which happens at the same time
as the registration to the administration. Registration to the Tax administration includes
registration for the Value Added Tax.
When the basic declaration is submitted, a certificate of the company's business
identification number may be obtained at a fee of EUR 7. This certificate allows
companies to use their bank accounts before registration has been completed.
The online registration is possible only when the following conditions are met:
- The standard Article of Association is sufficient.
- The shares are paid in euros to the bank account of the company to be established.
- The subscription price is entered in share capital entirely.
- All subscribers of shares and the Members of the Board of Directors shall have a
Finnish social security number and a personal code for online banking system or an
identity card with chip (HST-card). This applies also to possible CEO and a possible
auditor who is a natural person.
- The possible procuration holders and those who are entitled to represent the company
have a Finnish social security number.
According to the Finnish Limited Liability Companies Act (624/2006) chapter 2, section
8(1), the company shall be notified for registration within three months of the signing of
the Memorandum of Association. If failing this, the incorporation of
the company shall lapse. If the company shall carry on business, farming or any other
income deriving activity, it shall be registered in the prepayment register.
Page 8Doing Business 2019 Finland
3 File at a private insurer for pension insurance, accident insurance, and 1 day (simultaneous no charge
medical insurance of employees with previous
Agency : Private Insurer procedure)
Under the statutory pension insurance scheme, an employer must subscribe its employees
for pension insurance with a pension provider handling earnings-related pensions.
Supplemental pension insurance is optional.
The employer also pays the pension institution statutory employee earnings-related
contributions, such as: accident insurance, unemployment insurance, and group life
assurance premium. A social security contribution is also payable to the Regional Tax
Office.
The employer must insure its employees against accidents and occupational diseases,
according to Section 3 of the Occupational Accidents, Injuries and Diseases Act, which
has been in force as of 1 January 2017. In addition, certain collective labor agreements
require that employers provide their employees with group life insurance. No proof of
insurance is needed to start operations.
The accident insurance is paid to the insurance company and must be obtained before the
work for the company starts. The group life insurance is also paid to the insurance
company. The group life insurance is compulsory only if the applicable collective labor
agreement requires the employer to take the group life insurance. Unemployment
insurance is paid to The Unemployment Insurance Fund.
Takes place simultaneously with previous procedure.
Page 9Doing Business 2019 Finland
Dealing with Construction Permits
This topic tracks the procedures, time and cost to build a warehouse—including obtaining necessary the licenses and permits, submitting all
required notifications, requesting and receiving all necessary inspections and obtaining utility connections. In addition, the Dealing with
Construction Permits indicator measures the building quality control index, evaluating the quality of building regulations, the strength of
quality control and safety mechanisms, liability and insurance regimes, and professional certification requirements. The most recent round of
data collection was completed in May 2018. See the methodology for more information
What the indicators measure Case study assumptions
Procedures to legally build a warehouse To make the data comparable across economies, several assumptions about the
(number) construction company, the warehouse project and the utility connections are used.
• Submitting all relevant documents and obtaining The construction company (BuildCo):
all necessary clearances, licenses, permits and
certificates - Is a limited liability company (or its legal equivalent) and operates in the economy’s
largest business city. For 11 economies the data are also collected for the second
• Submitting all required notifications and receiving largest business city.
all necessary inspections
- Is 100% domestically and privately owned; has five owners, none of whom is a
• Obtaining utility connections for water and legal entity. Has a licensed architect and a licensed engineer, both registered with
sewerage the local association of architects or engineers. BuildCo is not assumed to have any
other employees who are technical or licensed experts, such as geological or
• Registering and selling the warehouse after its
completion topographical experts.
- Owns the land on which the warehouse will be built and will sell the warehouse
Time required to complete each procedure upon its completion.
(calendar days)
The warehouse:
• Does not include time spent gathering
information - Will be used for general storage activities, such as storage of books or stationery.
- Will have two stories, both above ground, with a total constructed area of
• Each procedure starts on a separate day— approximately 1,300.6 square meters (14,000 square feet). Each floor will be 3
though procedures that can be fully completed
meters (9 feet, 10 inches) high and will be located on a land plot of approximately
online are an exception to this rule
929 square meters (10,000 square feet) that is 100% owned by BuildCo, and the
• Procedure is considered completed once final warehouse is valued at 50 times income per capita.
document is received - Will have complete architectural and technical plans prepared by a licensed
architect. If preparation of the plans requires such steps as obtaining further
• No prior contact with officials
documentation or getting prior approvals from external agencies, these are counted
Cost required to complete each procedure (% of as procedures.
income per capita) - Will take 30 weeks to construct (excluding all delays due to administrative and
regulatory requirements).
• Official costs only, no bribes
The water and sewerage connections:
Building quality control index (0-15)
- Will be 150 meters (492 feet) from the existing water source and sewer tap. If there
• Quality of building regulations (0-2) is no water delivery infrastructure in the economy, a borehole will be dug. If there is
• Quality control before construction (0-1) no sewerage infrastructure, a septic tank in the smallest size available will be
installed or built.
• Quality control during construction (0-3) - Will have an average water use of 662 liters (175 gallons) a day and an average
• Quality control after construction (0-3) wastewater flow of 568 liters (150 gallons) a day. Will have a peak water use of
1,325 liters (350 gallons) a day and a peak wastewater flow of 1,136 liters (300
• Liability and insurance regimes (0-2) gallons) a day.
• Professional certifications (0-4) - Will have a constant level of water demand and wastewater flow throughout the
year; will be 1 inch in diameter for the water connection and 4 inches in diameter for
the sewerage connection.
Page 10Doing Business 2019 Finland
Dealing with Construction Permits - Finland
Standardized Warehouse
Estimated value of warehouse EUR 2,052,071.60
City Covered Helsinki
Indicator Finland OECD high Best Regulatory
income Performance
Procedures (number) 17 12.7 None in 2017/18
Time (days) 65 153.1 None in 2017/18
Cost (% of warehouse value) 0.9 1.5 None in 2017/18
Building quality control index (0-15) 10.0 11.5 15.0 (3 Economies)
Figure – Dealing with Construction Permits in Finland and comparator economies – Ranking and Score
DB 2019 Dealing with Construction Permits Score
0 100
86.94: Denmark (Rank: 4)
79.30: France (Rank: 19)
78.16: Germany (Rank: 24)
75.79: Finland (Rank: 34)
75.41: Regional Average (OECD high income)
71.64: Iceland (Rank: 71)
Note: The ranking of economies on the ease of dealing with construction permits is determined by sorting their scores for dealing with
construction permits. These scores are the simple average of the scores for each of the component indicators.
Figure – Dealing with Construction Permits in Finland – Procedure, Time and Cost
Time (days) Cost (% of warehouse value)
0.5
60
Cost (% of warehouse value)
0.4
50
Time (days)
40 0.3
30
0.2
20
0.1
10
0 0
1 *2 *3 *4 *5 *6 7 8 9 10 11 12 13 14 15 16 17
Procedures (number)
* This symbol is shown beside procedure numbers that take place simultaneously with the previous procedure.
Note: Online procedures account for 0.5 days in the total time calculation. For economies that have a different procedure list for men and
women, the graph shows the time for women. For more information on methodology, see the Doing Business website
(http://doingbusiness.org/en/methodology ). For details on the procedures reflected here, see the summary below.
Page 11Doing Business 2019 Finland
Figure – Dealing with Construction Permits in Finland and comparator economies – Measure of Quality
15 14.0
11.0 11.5
Index score 10.0 9.5
10
8.0
5
0
Finland Denmark France Germany Iceland OECD high income
Details – Dealing with Construction Permits in Finland – Procedure, Time and Cost
No. Procedures Time to Complete Associated Costs
1 Obtain building permit maps and extract from the Real Estate Office 12 days EUR 235
Agency : Real Estate Office
The Real Estate Office issues the building permits maps, which must be attached as
originals to the application. The applicant cannot use a map that is older than 3 months.
The fee also includes the extract from the Real Estate Register and the report of the build-
site height.
2 Obtain official opinion on the connection of the wastewater drain and water 7 days no charge
pipeline
Agency : HSY Helsinki Region Environmental Services Authority, HSY Water
The official opinion on the connection of the wastewater drain and the water pipeline
must be attached to the building permit application if the building will be connected to
the public water distribution system and to the public sewerage system. The opinion is
issued by the municipal organization in charge of the water supply (in the greater
Helsinki area, Helsinki Water). The cost is included in the connection charge.
3 Schedule start-up meeting 7 days no charge
Agency : Building Supervision Authority
BuildCo must set a date for a startup meeting with the building supervision authority and
convene all necessary persons to the meeting. The meeting must be held before the
beginning of construction (some excavation work can be done, but the foundation may
not be laid before the meeting). At a minimum, the following persons should attend the
meeting: the person starting the building project, the head designer, and the site manager.
The meeting attendees must be agreed with the building supervision authority.
4 Obtain extract from the Trade Register 1 day EUR 27
Agency : Trade Register
This procedure is usually required when the building permit applicant is a company
(which is the case in the Doing Business case study). The extract from the Trade Register
costs EUR 13.00 for the delivery and EUR 8.00 for invoicing.
5 Notify the neighbors of the building permit application 1 day no charge
Agency : Owners and titleholders of surrounding properties
According to Section 133 of the Land Use and Building Act, neighbours shall be notified
when an application for a building permit is submitted, unless notification is clearly not
necessary with regard to the neighbours' interest, due to the smallness or location of the
project, or to the contents of the plan. 'Neighbour' refers to owners and other titleholders
of adjacent or opposite properties. The fact that the application has been submitted shall
at the same time be publicized on the building site by suitable means.
When needed, a review shall be conducted on the building site in order to assess how the
building fits in with the surroundings and the impact of construction, and in order to hear
the neighbours. The applicant and the titleholders of the neighbouring properties shall be
notified of the time and date of the review.
6 Obtain report on the height of the intended construction 0.5 days no charge
Agency : Real Estate Office
This report can be obtained any time online from http://kartta.hel.fi/ . The report is
required to ensure that the height of the new building is in proportion with other buildings
in the same neighborhood. The statutory zoning map/local detailed plan is the only
document stating the allowed building height.
Page 12Doing Business 2019 Finland
7 Obtain building permit 38 days EUR 9,144
Agency : Municipal Building Inspection
The building permit is issued by the Municipal Building Inspection. BuildCo must
provide the necessary information to the local building supervision authority to decide on
the building permit application. The quality and the extent of the required information
depend on the project features.
The following documentation is usually required for warehouse projects:
• The completed application form issued by the building supervision authority. The owner
or the holder of the building site must sign the form. If there are several owners or
holders, all must sign the application form.
• A power of attorney is required only if a representative files the building permit
application (This is not applicable to the warehouse project considered here.)
• The establishment of the ownership title is required because the building permit can be
granted only based on the application made by the owner or the holder of the building
site. Usually one of the following documents is presented to the building supervision
authority:
1. The deed of sale of the real estate
2. The lease contract
3. The deed of title
4. The extract from the trade register
5. The building permit map and the extract from the real estate registry
6. The decision to deviate from the provisions, regulations, prohibitions, and other
restrictions on building and other action must be attached to the application, in original, if
the project requires such a decision
7. The certificate of the decision’s legal validity must be presented before the actual
launching of the building project (This is not applicable to the warehouse project.)
8. The environmental permit is required if the use of the building poses a threat of
environmental pollution. The decision on the building permit can be postponed until the
environmental permit is attached to the application (This is not applicable to the
warehouse project.)
9. Three master drawings must be attached to the application. One document will be
archived with the building supervision authority, and the other will be returned to the
applicant with the final decision. The master drawings to be followed in construction
master drawings are approved in connection with the grant of the building permit.
10. Report of the height of the building site
11. The ground investigation report of the building site. If needed, also enclosed with the
building permit application will be an account of the site’s health effects and ground
levels, and the type of foundation and any other measures required as a result. This report
may be produced by BuildCo.
12. The official opinion on the connection of the wastewater drain and the water pipeline
13. Notification to the neighbors. When the building permit application is filed with the
building supervision authority, the neighbors must also be notified. The applicant may do
this personally by using the official form, obtained from the building supervision
authority. Otherwise, subject to a fee, the applicant may request the building supervision
authority to conduct the notification.
14. Forms for official statistics. The building supervision authority must deliver
information on building projects to the Population Register Center. Thus, the forms in
question must be attached to the application. These forms are available at the building
supervision authority or at the public printing center.
15. The official form on the building designer. Every building project must have a
qualified head designer in charge of the construction design and the quality of the design
as a whole.
Other documents are required, as follows:
1. Working designs
2. Calculation of permitted building volume
3. Report on fire load, parking spaces, handling construction waste; on environmental
issues, with photographs (can be produced by BuildCo)
4. Constructional drawings and strength calculations and drawings on ventilation and
heating devices, on water and sewage devices, and on bomb shelters and the notification
of the bomb shelter
8 Receive foundation work inspection 1 day no charge
Agency : Municipality
9 Receive location inspection from the Real Estate Office 1 day EUR 1,520
Agency : Real Estate Office
The location inspection must be requested from the Real Estate Office after the
foundation work is completed. This inspection is held to determine that the building
height and location are in accordance with the master drawings.
10 Receive structure inspection 1 day no charge
Agency : Municipality
The inspection of the building structure is conducted after the load-bearing structure and
connected insulation works are completed.
Page 13Doing Business 2019 Finland
11 Receive ventilation inspection 1 day no charge
Agency : Municipality
The ventilation inspection is conducted after the completion of the exit flue and the
ventilation installation.
12 Receive sewer and water pipeline inspection 1 day no charge
Agency : HSY Helsinki Region Environmental Services Authority, HSY Water
The inspection of the sewer and water pipeline fittings is conducted after the completion
of these fittings.
13 Report information to the Finnish Tax Agency 1 day no charge
Agency : Finnish Tax Agency
The building supervisor (contractor) must provide information on employees at the
construction site on a monthly basis since July 2014 to the Finnish Tax agency. In
addition, tax rules require that the contractor informs the tax authority (agency) on
monthly basis of construction services contracts (including contracting parties, total
amount, and duration etc.).
14 Request and obtain water connection 3 days EUR 6,469
Agency : HSY Helsinki Region Environmental Services Authority
HSY Helsinki Region Environmental Services Authority is responsible for all matters of
connections to the water distribution and sewerage systems.
The procedure for ordering a connection is as follows:
• Helsinki Water customer service staff provides the new customer with a statement on
the connection. The street address of the plot or property is required, as is the owner’s
name, address, and phone number.
• Helsinki Water provides the customer with a preliminary estimate of the recently
introduced connection charge.
• The customer should acquire a building permit for the plot.
• After the customer has obtained the building permit, Helsinki Water will send the
customer the connection charge notice. The property owner can file a complaint within
14 days of receiving the notice. Unless a complaint is made, the proposed charge will be
considered as having been accepted by the customer.
• Water service connection and meter installation will be conducted after the connection
charge is paid. The customer is responsible for the construction and maintenance of the
connection pipes and conduits and their financing. Before the start of on-site construction
work, a supervisor responsible for the construction of the water facility and sewerage
system -- approved by the municipal building control officials -- should be assigned.
Helsinki Water always takes care of installation of water meters with seals, water main
connection with water-sealed joints, and connections to the sewerage system on the
customer’s properties. Service charges will be invoiced at rates valid at the time of the
order.
• A connection agreement is concluded.
• The invoicing procedure is settled.
15 Receive fire inspection from the Public Rescue Service 1 day EUR 200
Agency : Public Rescue Service
16 Receive final inspection 1 day no charge
Agency : BuildCo
A building, or a part thereof, shall not be commissioned before it has been finally
inspected and approved for use. The minutes of the commissioning inspection of the
electrical installation (drafted by the electricity contractor) are necessary for obtaining a
use or occupancy permit. This inspection can be performed by BuildCo, provided that the
company has qualified employees.
17 Obtain occupancy permit 4 days no charge
Agency : Municipality
Takes place simultaneously with previous procedure.
Page 14Doing Business 2019 Finland
Details – Dealing with Construction Permits in Finland – Measure of Quality
Answer Score
Building quality control index (0-15) 10.0
Quality of building regulations index (0-2) 2.0
How accessible are building laws and regulations in your economy? (0-1) Available online; 1.0
Free of charge.
Which requirements for obtaining a building permit are clearly specified in the building List of required 1.0
regulations or on any accessible website, brochure or pamphlet? (0-1) documents; Fees
to be paid;
Required
preapprovals.
Quality control before construction index (0-1) 1.0
Which third-party entities are required by law to verify that the building plans are in Licensed 1.0
compliance with existing building regulations? (0-1) architect;
Licensed
engineer.
Quality control during construction index (0-3) 2.0
What types of inspections (if any) are required by law to be carried out during construction? Inspections at 1.0
(0-2) various phases.
Do legally mandated inspections occur in practice during construction? (0-1) Mandatory 1.0
inspections are
always done in
practice.
Quality control after construction index (0-3) 3.0
Is there a final inspection required by law to verify that the building was built in accordance Yes, final 2.0
with the approved plans and regulations? (0-2) inspection is
done by
government
agency.
Do legally mandated final inspections occur in practice? (0-1) Final inspection 1.0
always occurs in
practice.
Liability and insurance regimes index (0-2) 0.0
Which parties (if any) are held liable by law for structural flaws or problems in the building No party is held 0.0
once it is in use (Latent Defect Liability or Decennial Liability)? (0-1) liable under the
law.
Which parties (if any) are required by law to obtain an insurance policy to cover possible No party is 0.0
structural flaws or problems in the building once it is in use (Latent Defect Liability Insurance required by law
or Decennial Insurance)? (0-1) to obtain
insurance .
Professional certifications index (0-4) 2.0
What are the qualification requirements for the professional responsible for verifying that the Minimum number 1.0
architectural plans or drawings are in compliance with existing building regulations? (0-2) of years of
experience;
University degree
in architecture or
engineering.
What are the qualification requirements for the professional who supervises the construction Minimum number 1.0
on the ground? (0-2) of years of
experience;
University degree
in engineering,
construction or
construction
management.
Page 15Doing Business 2019 Finland
Getting Electricity
This topic measures the procedures, time and cost required for a business to obtain a permanent electricity connection for a newly
constructed warehouse. Additionally, the reliability of supply and transparency of tariffs index measures reliability of supply, transparency of
tariffs and the price of electricity. The most recent round of data collection for the project was completed in May 2018. See the methodology
for more information.
What the indicators measure Case study assumptions
Procedures to obtain an electricity connection To make the data comparable across economies, several assumptions about the
(number) warehouse, the electricity connection and the monthly consumption are used.
• Submitting all relevant documents and obtaining The warehouse:
all necessary clearances and permits
- Is owned by a local entrepreneur and is used for storage of goods.
• Completing all required notifications and - Is located in the economy’s largest business city. For 11 economies the data are
receiving all necessary inspections
also collected for the second largest business city.
• Obtaining external installation works and possibly - Is located in an area where similar warehouses are typically located and is in an
purchasing material for these works area with no physical constraints. For example, the property is not near a railway.
- Is a new construction and is being connected to electricity for the first time.
• Concluding any necessary supply contract and
- Has two stories with a total surface area of approximately 1,300.6 square meters
obtaining final supply
(14,000 square feet). The plot of land on which it is built is 929 square meters
Time required to complete each procedure (10,000 square feet).
(calendar days)
The electricity connection:
• Is at least 1 calendar day
- Is a permanent one with a three-phase, four-wire Y connection with a subscribed
• Each procedure starts on a separate day capacity of 140-kilo-volt-ampere (kVA) with a power factor of 1, when 1 kVA = 1
• Does not include time spent gathering kilowatt (kW).
information - Has a length of 150 meters. The connection is to either the low- or medium-voltage
distribution network and is either overhead or underground, whichever is more
• Reflects the time spent in practice, with little common in the area where the warehouse is located and requires works that involve
follow-up and no prior contact with officials
the crossing of a 10-meter road (such as by excavation or overhead lines) but are all
Cost required to complete each procedure (% of carried out on public land. There is no crossing of other owners’ private property
income per capita) because the warehouse has access to a road.
- Does not require work to install the internal wiring of the warehouse. This has
• Official costs only, no bribes already been completed up to and including the customer’s service panel or
• Value added tax excluded switchboard and the meter base.
The reliability of supply and transparency of The monthly consumption:
tariffs index (0-8)
- It is assumed that the warehouse operates 30 days a month from 9:00 a.m. to 5:00
• Duration and frequency of power outages (0–3) p.m. (8 hours a day), with equipment utilized at 80% of capacity on average and that
• Tools to monitor power outages (0–1) there are no electricity cuts (assumed for simplicity reasons) and the monthly energy
consumption is 26,880 kilowatt-hours (kWh); hourly consumption is 112 kWh.
• Tools to restore power supply (0–1) - If multiple electricity suppliers exist, the warehouse is served by the cheapest
• Regulatory monitoring of utilities’ performance supplier.
(0–1) - Tariffs effective in January of the current year are used for calculation of the price of
electricity for the warehouse. Although January has 31 days, for calculation
• Financial deterrents limiting outages (0–1) purposes only 30 days are used.
• Transparency and accessibility of tariffs (0–1)
Price of electricity (cents per kilowatt-hour)*
• Price based on monthly bill for commercial
warehouse in case study
*Note: Doing Business measures the price of
electricity, but it is not included in the ease of doing
business score nor the ranking on the ease of
getting electricity.
Page 16Doing Business 2019 Finland
Getting Electricity - Finland
Standardized Connection
Price of electricity (US cents per kWh) 11.3
Name of utility Helen Electricity Network (Helen Sähköverkko Oy)
City Covered Helsinki
Indicator Finland OECD high Best Regulatory
income Performance
Procedures (number) 5 4.5 3 (25 Economies)
Time (days) 42 77.2 18 (3 Economies)
Cost (% of income per capita) 25.9 64.2 0.0 (3 Economies)
Reliability of supply and transparency of tariff index (0-8) 8 7.5 8.0 (27 Economies)
Figure – Getting Electricity in Finland and comparator economies – Ranking and Score
DB 2019 Getting Electricity Score
0 100
98.79: Germany (Rank: 5)
92.24: Iceland (Rank: 13)
92.01: France (Rank: 14)
90.22: Denmark (Rank: 21)
88.98: Finland (Rank: 25)
85.47: Regional Average (OECD high income)
Note: The ranking of economies on the ease of getting electricity is determined by sorting their scores for getting electricity. These scores are
the simple average of the scores for all the component indicators except the price of electricity.
Page 17Doing Business 2019 Finland
Figure – Getting Electricity in Finland – Procedure, Time and Cost
Time (days) Cost (% of income per capita)
20
40
Cost (% of income per capita)
35
15
30
Time (days)
25
10
20
15
10 5
5
0 0
1 2 3 4 5
Procedures (number)
* This symbol is shown beside procedure numbers that take place simultaneously with the previous procedure.
Note: Online procedures account for 0.5 days in the total time calculation. For economies that have a different procedure list for men and
women, the graph shows the time for women. For more information on methodology, see the Doing Business website
(http://doingbusiness.org/en/methodology ). For details on the procedures reflected here, see the summary below.
Figure – Getting Electricity in Finland and comparator economies – Measure of Quality
8 8 8
8 7.5
7 7
7
6
Index score
5
4
3
2
1
0
Finland Denmark France Germany Iceland OECD high income
Page 18Doing Business 2019 Finland
Details – Getting Electricity in Finland – Procedure, Time and Cost
No. Procedures Time to Complete Associated Costs
1 Submit application and certification from electrician to Helen Electricity 1 calendar day EUR 0
Network
Agency : Helen Electricity Network
The application for a new connection can be submitted through an online form (i.e. to
obtain the contract for getting connected to the distribution grid) or in person at Helen’s
customer service point. If submitted online, the customer can choose to provide the
required documents either directly online, or send them via email/regular mail. The
required documents include the blueprints of the buildings internal wiring, which have to
be approved by the utility before the building is connected to the grid.
2 Purchase material and carry out external works 3 calendar days EUR 3,000
Agency : Helen Electricity Network
The customer needs to purchase and install the connection cable from the building to the
perimeter wall, since the utility does only the external connection works, and everything
inside the boundary wall of the building is the customer’s responsibility. The meter is
installed only after the connection cable is installed.
3 Submit electrician's statement on internal wiring and receive external 30 calendar days EUR 7,640
works from Helen Electricity Network
Agency : Helen Electricity Network
The customer's electrician submits a document where he states that all the wiring has
been done according to the rules and regulations. The person in charge of the wiring has
to be a certified electrician and have the licenses that are required to do inspections. The
electrician does not have to be registered with the utility company and there is no
verification whether they are certified or not.
4 Sign supply contract with retailer 1 calendar day EUR 0
Agency : Helen Electricity Network
The customer has a choice of retailers for electricity supply. In the case of most retailers,
the application is done online, and no paperwork needs to submit.
5 Request and receive meter installation and electricity flow 7 calendar days EUR 0
Agency : Helen Electricity Network
The meter is installed when the customer’s electrician informs the utility that it can be
installed (not at the same time as the connection). The installation is done by Empower
Oy. The customer does not need to contact this company separately, it is taken care of by
the utility. Electricity starts flowing once the meter is installed, and once Empower Oy
has informed the utility that the meter has been installed.
Takes place simultaneously with previous procedure.
Page 19Doing Business 2019 Finland
Details – Getting Electricity in Finland – Measure of Quality
Answer
Reliability of supply and transparency of tariff index (0-8) 8
Total duration and frequency of outages per customer a year (0-3) 3
System average interruption duration index (SAIDI) 0.6
System average interruption frequency index (SAIFI) 0.3
What is the minimum outage time (in minutes) that the utility considers for the calculation of SAIDI/SAIFI 3.0
Mechanisms for monitoring outages (0-1) 1
Does the distribution utility use automated tools to monitor outages? Yes
Mechanisms for restoring service (0-1) 1
Does the distribution utility use automated tools to restore service? Yes
Regulatory monitoring (0-1) 1
Does a regulator—that is, an entity separate from the utility—monitor the utility’s performance on reliability of Yes
supply?
Financial deterrents aimed at limiting outages (0-1) 1
Does the utility either pay compensation to customers or face fines by the regulator (or both) if outages Yes
exceed a certain cap?
Communication of tariffs and tariff changes (0-1) 1
Are effective tariffs available online? Yes
Link to the website, if available online https://www.helen.fi/e
n/households/service
s/electricity-products-
and-prices/general-
price-lists/
Are customers notified of a change in tariff ahead of the billing cycle? Yes
Note:
If the duration and frequency of outages is 100 or less, the economy is eligible to score on the Reliability of supply and transparency of tariff
index.
If the duration and frequency of outages is not available, or is over 100, the economy is not eligible to score on the index.
If the minimum outage time considered for SAIDI/SAIFI is over 5 minutes, the economy is not eligible to score on the index.
Page 20Doing Business 2019 Finland
Registering Property
This topic examines the steps, time and cost involved in registering property, assuming a standardized case of an entrepreneur who wants to
purchase land and a building that is already registered and free of title dispute. In addition, the topic also measures the quality of the land
administration system in each economy. The quality of land administration index has five dimensions: reliability of infrastructure, transparency
of information, geographic coverage, land dispute resolution, and equal access to property rights. The most recent round of data collection for
the project was completed in May 2018. See the methodology for more information.
What the indicators measure Case study assumptions
Procedures to legally transfer title on To make the data comparable across economies, several assumptions about the
immovable property (number) parties to the transaction, the property and the procedures are used.
• Preregistration procedures (for example, The parties (buyer and seller):
checking for liens, notarizing sales agreement,
paying property transfer taxes) - Are limited liability companies (or the legal equivalent).
- Are located in the periurban area of the economy’s largest business city. For 11
• Registration procedures in the economy's largest economies the data are also collected for the second largest business city.
business city.
- Are 100% domestically and privately owned.
• Postregistration procedures (for example, filling - Have 50 employees each, all of whom are nationals.
title with municipality) - Perform general commercial activities.
Time required to complete each procedure The property (fully owned by the seller):
(calendar days)
- Has a value of 50 times income per capita, which equals the sale price.
• Does not include time spent gathering - Is fully owned by the seller.
information - Has no mortgages attached and has been under the same ownership for the past
• Each procedure starts on a separate day - 10 years.
though procedures that can be fully completed - Is registered in the land registry or cadastre, or both, and is free of title disputes.
online are an exception to this rule - Is located in a periurban commercial zone, and no rezoning is required.
- Consists of land and a building. The land area is 557.4 square meters (6,000
• Procedure is considered completed once final square feet). A two-story warehouse of 929 square meters (10,000 square feet) is
document is received
located on the land. The warehouse is 10 years old, is in good condition, has no
• No prior contact with officials heating system and complies with all safety standards, building codes and legal
requirements. The property, consisting of land and building, will be transferred in its
Cost required to complete each procedure (% of entirety.
property value) - Will not be subject to renovations or additional construction following the purchase.
• Official costs only (such as administrative fees, - Has no trees, natural water sources, natural reserves or historical monuments of
duties and taxes). any kind.
- Will not be used for special purposes, and no special permits, such as for
• Value Added Tax, Capital Gains Tax and illicit residential use, industrial plants, waste storage or certain types of agricultural
payments are excluded activities, are required.
- Has no occupants, and no other party holds a legal interest in it.
Quality of land administration index (0-30)
• Reliability of infrastructure index (0-8)
• Transparency of information index (0–6)
• Geographic coverage index (0–8)
• Land dispute resolution index (0–8)
• Equal access to property rights index (-2–0)
Page 21Doing Business 2019 Finland
Registering Property - Finland
Indicator Finland OECD high Best Regulatory
income Performance
Procedures (number) 3 4.7 1 (4 Economies)
Time (days) 47 20.1 1 (New Zealand)
Cost (% of property value) 4.0 4.2 0.0 (Saudi Arabia)
Quality of the land administration index (0-30) 26.5 23.0 None in 2017/18
Figure – Registering Property in Finland and comparator economies – Ranking and Score
DB 2019 Registering Property Score
0 100
89.88: Denmark (Rank: 11)
86.61: Iceland (Rank: 15)
80.73: Finland (Rank: 28)
77.17: Regional Average (OECD high income)
65.70: Germany (Rank: 78)
63.33: France (Rank: 96)
Note: The ranking of economies on the ease of registering property is determined by sorting their scores for registering property. These
scores are the simple average of the scores for each of the component indicators.
Figure – Registering Property in Finland – Procedure, Time and Cost
Time (days) Cost (% of property value)
4.5
45
4
40
Cost (% of property value)
3.5
35
3
30
Time (days)
2.5
25
20 2
15 1.5
10 1
5 0.5
0 0
1 2 3
Procedures (number)
* This symbol is shown beside procedure numbers that take place simultaneously with the previous procedure.
Note: Online procedures account for 0.5 days in the total time calculation. For economies that have a different procedure list for men and
women, the graph shows the time for women. For more information on methodology, see the Doing Business website
(http://doingbusiness.org/en/methodology ). For details on the procedures reflected here, see the summary below.
Page 22Doing Business 2019 Finland
Figure – Registering Property in Finland and comparator economies – Measure of Quality
30
26.5 26.5
24.5 24.0
25 23.0
22.0
Index score
20
15
10
5
0
Finland Denmark France Germany Iceland OECD high income
Details – Registering Property in Finland – Procedure, Time and Cost
No. Procedures Time to Complete Associated Costs
1 The seller and buyer notarize the deed of sale with an attesting notary or 1 day EUR 120; (120 (55 €
prepare the agreement through E-Conveyancing when using the E-
Agency : Attesting notary / purchasing witness or online through e-conveyance conveyance))
system
The sale agreement can be prepared by the seller or the buyer, no involvement of a
lawyer or real estate agent is required by law. In general the seller present an extract from
the Land Registry and extracts from the Title and Mortgage Registries demonstrating
ownership and any registered encumbrances, but these are not formally required.
The agreement must be in writing and contain at a minimum the following information
(according to the Code of Real Estate 540/1995, as amended): name of the seller and
buyer, the object of purchase (including real estate number), the purchase price or
equivalent compensation and possible subsequent conditions. The agreement must also
contain the purpose of transfer.
The sale agreement shall be signed both by the seller and buyer, in the presence of the
attesting notary. The attesting notary checks the ID of the seller and buyer and verifies the
formal validity of the sales agreement. Failure to follow these requirements will result in
the transaction being automatically null and void. Note that an attesting notary is required
only when ownership (freehold title) of the real estate is assigned. When the right of
tenancy (leasehold) or other right to possess the property is assigned, the presence of the
attesting notary is not required. The attesting notary must inform National Land Survey
of Finland of the transaction and the buyer must apply for the registration of its title at
their offices (see Procedure 3).
In November 2013 National Land Survey Finland introduced the E-Conveyancing
system. When seller and buyer use the new E-Conveyancing system, no notary is needed
to conduct the transaction which can be done online. Both parties must have a strong
authentication in order to log in the system. As of April 2018, most transactions are still
conducted following the traditional process.
2 The buyer pays the transfer tax 1 day EUR 82,082.86; (4%
Agency : Local Bank, Tax Authority or online banking of the property value)
The transfer tax must be paid to the Finnish Tax Administration within six (6) months of
the date of the transfer/purchase agreement. In practice, payment of transfer tax is a
prerequisite for the registration of title and, accordingly, transfer tax will become
immediately due and payable upon application for registration of title. As the application
for registration of title is automatically filed upon completion of the transfer if the e-
conveyancing system referred to under Procedure 1 is used, in such case transfer tax will
also become immediately due and payable. In the event that the buyer fails to pay the
requisite transfer tax within six (6) months of the date of the transfer/purchase agreement,
the Finnish Tax Administration may impose a higher transfer tax (up to 8%)
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