ESTABLISHING A LIMITED LIABILITY COMPANY IS TEMPTING

ENTREPRENEURSHIP REQUIRES REALISM AND DREAMS

A total of 1,196 new companies were established last year in the operating area of Keski-Uudenmaan Kehittämiskeskus Oy (Keuke), which includes Järvenpää, Karkkila, Kerava, Nurmijärvi, Pornainen, Sipoo, and Tuusula.

In 2018, Keuke advised a total 440 clients on matters related to establishing a company. 214 new companies were established as result of the counseling provided by Keuke.

– Not all clients who come to us seeking advice end up establishing companies. This is one of the benefits provided by the service. Unrealistic ideas and dreams will not be realized as business operations, says Elina Pekkarinen, the CEO of Keuke.

The benefits of the counseling can be particularly seen in the continuity of business operations. More than 80 percent of the companies established through Keuke’s business counseling service remain operational after two years, whereas the corresponding number from Statistics Finland is 50 percent. The counseling related to establishing a company is provided free of charge.

– Establishing a company is always based on a good business idea and dreams. We provide the necessary realism to complement these, help make profitability calculations, and go through the important and essential issues from taxes to accounting and insurance to official authorizations.

CAPITAL REQUIREMENT FOR LIMITED LIABILITY COMPANIES REMOVED IN JULY

Establishing a limited liability company becomes easier after July of this year, as the establishment will no longer require a share capital of 2,500 euros. The minimum capital requirement for limited liability companies has presumably guided entrepreneurs to choose to operate as private entrepreneurs instead.

– We believe that with this reform an increasing number of private entrepreneurs will decide to change the type of their company. And most likely more new companies will be established as limited liability companies from the start, Pekkarinen predicts.

Two significant factors favor limited liability companies: business liabilities and taxation. On the other hand, sole traders are more likely to operate as private entrepreneurs, as that makes it easier to wind down unviable business operations, for example.

– It should however be noted that banks or other financers will in any case require some form of capital for establishing a company. You should never start a business without reasonable financial plans.

WHAT IS DAUNTING ABOUT STARTING A BUSINESS?

According to the experiences of Keuke's business counseling, the fear of an insurmountable flood of permits and bureaucracy is the most daunting aspect of establishing a new company. However, the most common reason for a failing business is the lack of customers, as simple as that sounds.

– All of these hurdles are discussed during the counseling to ensure that you are prepared for them. We also provide dedicated, tailor-made services and sparring for marketing and customer acquisition. And as for the fear of bureaucracy, its amount depends heavily on the sector, and it should by no means be considered an obstacle preventing you from utilizing a good business idea. Together we can find the answers to all of your questions.

Additional information: CEO Elina Pekkarinen, telephone +358 (0)50 549 2213, www.keuke.fi. You can also find us on Facebook, Instagram, Twitter, YouTube, and LinkedIn.