Monday, March 16, 2015

Suomi nousuun!

(This post is meant as a motivational to Finnish politicians.)

I have visited Finland for a couple of times in the last weeks and talked to finns living both in Finland and Estonia. For some reason there is a note of depression whenever the topic of Finnish economy comes up. Government deciding nothing for 5 years and Russian sanctions tend to come up. It is far from the optimistic bostadsbubbla that one sees in Sweden. The most amazing was a story of a Finnish IT startup with only finnish employees and customers that had just moved to ....Tallinn, because of the energy they feel in Tallinn.

So what might be the reason for this? One might guess that taxes are one, but actually it is not only that. It is the bureaucracy, non-business related costs, insurances and all type of licenses and rules. Let me shock the finnish business community with the following prices and facts about Estonia:
- Accounting services cost 50-70 eur/month for a small company and that includes making the annual report.
- Bank costs and services are the same as for ordinary people. That means 2,5 eur/month for a bankcard I think.
- There are not very many mandatory insurances...actually none for most of the businesses
- There is no corporate tax on your revenues if you don't take them out as dividends
- With e-residency you can do all the transactions online from wherever in the world.
- Most of the paperwork can be done online. In fact I have not seen the accountant of my little company for 5 years now and I have never visited the tax or other authorities physically. You can sign all the documents and reports digitally.

So here is what to do in the IT business! Incorporate in Estonia. Buy resources from all over the world, e.g. India, Belarus, Poland. Put it all together to a service in Estonia and sell it to Finland, Sweden, Denmark and Norway. (I can give a few tips on how to do it) ...or maybe the Finnish politicians will cut down the bureaucracy? ...and the Finnish insurance and banking sector will cut down their prices for businesses? I do hope so, because I love Finland.

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