BRING YOUR BUSINESSTO HELSINKI

We’re happy that you are consideringHelsinki as a place to do business.

We want to help you make the best decision for your business. Therefore we have collected some facts to help you in making a decision whether Helsinki is the right location for you. We of course believe it is. In this presentation we have gathered you information about

We’re here for you!

1WHAT IS FINLAND LIKE AS AN OPERATING ENVIRONMENT? WHY SHOULD YOU COM TO HELSINKI? 2

WHAT COSTS AND INCENTIVES ARE THERE INVOLVED IN SETTING UP A BUSINESS? 3 HOW CAN WE HELP YOUR BUSINESS

TO GROW?

CLICK IMAGES BELOW TO NAVIGATE THE PRESENTATION

1. FinlandThe most dynamic country in Europe

Finland hasTHE WORLD’S BEST WORKERS

Over a third of the Helsinki region inhabitants have a higher-level education and Finnish students are consistently ranked amongst the smartest on the planet.

Finns have the work ethics and trans-sectorial skills needed to succeed in knowledge-intensive businesses in a global economy.

Supported by an unmatched, modern infrastructure, it's no wonder Finns are constantly ranked as one of the world's most productive workforces.HELSINKI

ESPOO

VANTAA

3.31 3.30 3.06 2.85 2.812.23 2.01 1.74 1.66 1.64

% SHARE OF GDP EXPENDITURE ON R&D2013

289 271223

11232

Sweden Finland Denmark Norway Estonia

PATENT APPLICATIONS(PER MILLION INHABITANTS), 2012

% OF R&D PERSONNEL PERSONS EMPLOYED IN BALTIC SEA REGION, 2013

2.18 2.161.72

0.94

Denmark Finland Sweden Estonia

Highly educated professionals

The world’s best educational system

Outstanding research opportunities

We hostA CULTURE OF FRESH THINKING

And we consistentlyTOP THE RANKINGS

1

2

3

4

HIGHER EDUCATION AND TRAINING**

HEALTH AND PRIMARY EDUCATION**

INNOVATION**

WEF HUMAN CAPITAL INDEX*

AVAILABILITY OF SKILLED LABOUR***

EDUCATIONAL SYSTEM***

LEAST CORRUPTED COUNTRY IN THE WORLD****

MOST COMPETITIVE ECONOMY IN THE WORLD**

*Human Capital Report 2015

** Global Competitiveness report 2014-2015

***IMD, World Talent Report 2014

**** Transparency International 2014

Finland has EUROPE’S HIGHEST LEVEL OF VENTURE INVESTMENT in relation to GDP, according to a study by FVCA. Switzerland, Sweden, Ireland and the UK are also in the top-5.

2015 venture financing totaled 122 MILLION EUROS, of which 21 million euros (17%) came from foreign venture investors.

Around 70% OF VENTURE INVESTMENT DEALS and up to 80% OF VENTURE INVESTMENT VALUE went to companies located in THE HELSINKI REGION (source: BVD Zephyr).

ICT and LIFE SCIENCES are the sectors attracting most venture capital investment.

2015 there were 40 Finnish venture divestments worth 106 MILLION EUROS (amount at cost!), exceeding Sweden, Denmark and Norway’s divestments.

VENTURE INVESTMENT activity

Average MONTHLY SALARIES in Finland

€6 474

€4 457

€3 574

€3 561

€2 921

€2 907

€2 760

€2 501

€2 387

€2 279

Directors and managers

Senior specialists

All employees

Specialists

Process and transport workers

Construction, repair and manufacturing workers

Office and customer service staff

Service and sales staff

Agricultural and forestry workers

Other workers

Employment COSTS

Typical breakdown of monthly payments made by the employer for an employee with a monthly salary of 3 000 €

Gross salary

Earnings-related pension insurance contribution, 18.95 %

Employers' health insurance contribution, 1.08 %

Unemployment insurance, 0.80 %*

Group life assurance payment, on average 0.07 %

Occupational accident insurance, on average 1.0 %

TOTAL EMPLOYER

COST

3 657 €

SOFTWARE DEVELOPMENT salaries

Annual base salary, Finland, 2013

SOFTWARE DEVELOPMENT ENGINEER - ENTRY 35 116 €

SOFTWARE DEVELOPMENT ENGINEER - EXPERIENCED 45 000 €

SOFTWARE DEVELOPMENT ENGINEER - SENIOR 53 034 €

SOFTWARE DEVELOPMENT MANAGER 66 149 €

ICT TALENT in the Helsinki region

Operating costs of an R&D center of 100 employees

0 2000000 4000000 6000000 8000000 10000000

London

Paris

Berlin

Copenhagen

Stockholm

Dublin

Vienna

Amsterdam

Helsinki

Barcelona

Tallinn

Labour costs Property costs

“Hiring is never easy but the main reason we chose to set up

operations in Helsinki is the huge talent pool here. We want to

find the best engineers and offer them a great challenge and

purpose while giving them the flexibility and freedom to

individually decide how to find the best solutions”.

- Marc Lamik, Head of Tech Expansion, Zalando

http://www.helsinkibusinesshub.fi/article/e-commerce-giant-hires-passionate-programmers-in-helsinki/

BACK TO NAVIGATION

2. Costsof setting up

business in Finland

SETTING UP a businessForeign companies are welcome in Finland and the process of establishing a business is quick and easy.

The incorporation process involves very few procedures and only takes 2 to 3 weeks.

Foreign companies most commonly conduct business through a private or public limited liability company or a Finnish branch office.

2500 € Minimum capital* a private limited

company shall have

*The share capital must be paid to the company’s account in full before the company can be entered in the Trade Register.

380 € Trade Register’s

fee

200 € Auditor’s fee

to certify the deposit share capital

1250 € The cost of outsourcingthe incorporation work

to a law firm

TAX rates

In Finland, tax rates for companies are at normal European levels

Personal income tax*

Monthly salary 5 500 € 35.8 %

Monthly salary 3 574 € 29.3 %

Foreign key employee 35 %

Capital income tax 21.6-34 %

Corporate tax 20 %

Property tax 0.86% - 1.80 %

Transfer tax (buyer pays) 4 % real estate2 % limited liability housing company shares

Value added tax (VAT) 24 % general rate14 % groceries and restaurants10 % misc. services and cultural activities

Electricity cost for industrial clients

0.089 € / kWh

Gas cost for industrial clients

0.036 € / kWh

Expenses for PREMISES

Rents

Other related costs

Prime office rent Rent

Helsinki, central business district 306 € /m²/year

Rest of Helsinki 222 € /m²/year

Espoo 204 €/m²/year

Vantaa 198 € /m²/year

STARTUP spaces

MARIA 0-1http://maria.io/

MICROSOFT FLUXhttp://www.microsoftflux.com/

MOTHERSHIP OF WORKhttp://mow.fi/

UMA WORKSPACEhttp://www.technopolis.fi/uma/

Expenses ofRUNNING A BUSINESS

Accounting and book keeping costs approximately 50-200 € / hour

Legal services cost approximately 100-300 € / hour

Our network of trusted service providers is

at your service;they help international

companies entering the Helsinki region

partners.helsinkibusinesshub.fi

Getting a RESIDENCE PERMIT

Other than Nordic countries and EU / EEA nationals need to have a residence permit to stay in Finland for 90 days or longer.

The first residence permit must be applied personally at the Finnish embassy or consulate in the consular district where the applicant has a legal residence.

The decision to grant a residence permit is made by the Finnish Immigration Service.

First residence permit 455 €

First residence permit for employed persons or self employed persons 450-500 €

First residence permit, minor applicant 200-230 €

Renewal of a residence permit card 78 €

Costs

Living COSTS

TransportationHousing

Apartment location

Rent (€/m2/month)

Price (€/m2)

Helsinki - prime location 25 6 067

Greater Helsinki 15 3 445

Finland 10 2 152

Helsinki Region Transport (HSL) 30 day ticket

Within one municipality (Helsinki/Vantaa/Espoo/etc.) 54.70 €

All municipalities (seutulippu) 106.50 €

MOBILE DATA in Finland is the fourth cheapest out of the 27 EU member countries.

FOOD AND NON-ALCOHOLIC BEVERAGES are 19% more expensive in Finland than in the 27 EU member countries on average. Austria, Sweden, Denmark, Switzerland and Norway are more expensive.

BACK TO NAVIGATION

3. Support

of setting upa business in Finland

and incentives

FUNDING and SUBSIDIES

Foreign-owned companies in Finland are eligible for a wide range of government and EU incentives on an equal footing with Finnish-owned companies.

SOURCES of funding and subsidy

R&D&I INCENTIVES

by Tekes

BUSINESS AIDfrom ELY Centres

LOANS AND GUARANTEES

by Finnvera

DEVELOPMENT RESEARCH FUNDING Academy of Finland

www.aka.fi/en

EU-funded SUPPORT from various sources

CAPITAL INVESTMENTS from Finnish Industry

Investment

www.industryinvestment.com

www.tekes.fi/en www.ely-keskus.fi/en www.finnvera.fi/eng

BACK TO NAVIGATION

4. Helsinki

How we can help you

Business Hub

THE HELSINKI REGION OUTNUMBERS OTHER NORDIC CAPITALS IN TOTAL AMOUNT OF FDI PROJECTS & CROSS-BORDER VENTURE AND M&A DEALS

69

89 93 9078

96

130145 140

163

5662

106

81 76

9387 92

112106

3730 30

43

20

2011 2012 2013 2014 2015

Copenhagen Helsinki Oslo Stockholm Tallinn

FDI source: FT fDi Markets / Venture and M&A data source: Bureau van Dijk Zephyr

WE WORK CLOSE TO THE BUSINESS IN KNOWLEDGE INTENSIVE FIELDSAMOUNT OF COMPANIES IN THE HELSINKI REGION:

Health481

ICT1460

SMART & CLEAN

331

AROUND 500 TECH STARTUPS LOCATEDIN THE HELSINKI REGION

Startup definition: Established 2011-16, small or micro sized company.

OUR SERVICES ARE FREE OF CHARGE

DEAL FLOWfrom Finland

Location forR&D ACTIVITIES

EXPANDINGBUSINESS

to Nordics, Baltic Sea Region or Europe

Grow your INNOVATION-DRIVEN

BUSINESS in Helsinki

Business opportunity information

Matchmaking

Market informationAccess to deal flow

Soft landing services

Access to financing

Access to reference markets

Export boosting

We

can

supp

ort

you

wit

h

If you are interested in...

WE MAKE HELSINKI THE BEST PLACE TO ACCLERATE YOUR BUSINESS.

Picture © Jussi Hellsten / Visit Helsinki

HELSINKI BUSINESS HUB RECEIVES ITS FUNDING FROM PUBLIC SOURCES – FROM THE CITIES OFHELSINKI, ESPOO, VANTAA AND KAUNIAINEN AS WELL AS THE UUSIMAA REGIONAL COUNCIL. READ MORE FROM www.helsinkibusinesshub.fi

WEENABLE

INNOVATION-DRIVENCOMPANIES TO GROWAND DEVELOP IN HELSINKI

FOREIGN COMPANIESTO ESTABLISH THEIRBUSINESSES IN HELSINKI

WEWORKWITH

FOREIGN & LOCALCOMPANIES

INVESTORS

PUBLIC SECTOR

ACADEMIA

OURFOCUS

IS ON

ICT

SMART &CLEANTECH

HEALTH TECH &LIFE SCIENCES

OURWORK

RESULTSIN

NEW JOBS INTHE REGION

NEW INVESTMENTSIN THE REGION

BACK TO NAVIGATION