Countries of the World/COUNTRYS.BIN/dp/0133/01330.txt

Text File | 1991-06-25 | 17KB | 371 lines

$Unique_ID{COW01330}
$Pretitle{367}
$Title{Finland
The Finnish Market}
$Subtitle{}
$Author{Pertti Huitu}
$Affiliation{Finnish Foreign Trade Association}
$Subject{helsinki
telephone
finnish
companies
address
insurance
sf
finland
foreign
telex}
$Date{1990}
$Log{}
Country:     Finland
Book:        Finland in the 1990s
Author:      Pertti Huitu
Affiliation: Finnish Foreign Trade Association
Date:        1990

The Finnish Market

     In 1989 there were some 1,800 companies in Finland with at least 10 %
foreign-owned equity. Foreign companies are usually treated on the same terms
as Finnish, benefit from the same incentives but are not given preferential
treatment. Swedish companies head the list of foreign investors, but the
United States, Great Britain and the Federal Republic of Germany as well as
Denmark and Switzerland have sizeable interests here. The Finnish market is
compact but it is growing. Finland has free trade agreements with almost every
European country and is a full member of the European Free Trade Association.
A growing movement of internationalization of Finnish companies developed
momentum in the 1980s with Finnish firms establishing operations in many parts
of the world but particularly in Western Europe, North America and the Far
East.

ESTABLISHING IN FINLAND

     Regulations governing the establishment of foreign companies in Finland
are usually liberal. The only true monopoly is the distribution of alcoholic
beverages. However, in fact, if not in law, the state controls the railways
and airlines and regulates licensing arrangements for radio and television
broadcasting.

     Finnish law does exclude foreign participation in coastal shipping, real
estate dealing in certain cases or atomic energy production.

     Excluding the foregoing restrictions foreigners' applications to own
shares in a company registered in Finland are handled liberally. Thus, a
foreigner may in most cases own up to 100 % of a company's shares. Only in
certain cases (usually connected with Finnish natural resources) a company's
bylaws must include what is known as a "foreigner's clause" which forbids a
foreigner to own more than 20 % of the company's share capital.

     It is advisable to engage a Finnish legal adviser to handle
documentation. Bank of Finland's approval is required for the import of both
equity and loan capital. The founder of a limited liability company can be one
or more persons or corporate bodies. The founder must be a Finnish or Nordic
citizen residing in Finland or a Finnish corporate body or foundation.

     With the permission of the Ministry of Trade and Industry a foreign
corporate body or a private individual of foreign nationality can also be a
founder. In many cases a Finnish lawyer acts as founder until the company has
been registered in the Trade Register.

     The Trade Register authorities must in certain cases obtain a ruling of
the Ministry of Trade and Industry on the company's articles of association.
When the Ministry has approved the rules, the company must be registered with
the Trade Register.

     Additional information is provided by The Commission for Foreign
Investments, Ministry of Trade and Industry. Address: Aleksanterinkatu 10,
SF-00170 Helsinki. Telephone: [phone]. Telex: 124645 minco sf.

     Bank of Finland (currency and licensing matters). Address: P.O. Box 160,
SF-00101 Helsinki. Telephone: [phone]. Telex: 121224 spfb sf.

WHOLESALE AND RETAIL TRADE

     There is too little awareness abroad of the fact that Finland is a
growing market. After all, the country ranks consistently among the world's
richest countries in terms of per capita income.

     Kesko Oy is a limited company owned by K retailers, other private
persons, companies and foundations. The K retailer is an independent family
entrepreneur who is in economic co-operation with the other K retailers
through their central organization, Kesko. The number of K retailers is about
2,800 and they have roughly 3,400 retail outlets.

     Together, Kesko and K retailers form the K Group.

     In 1989, Kesko's sales amounted to FIM 29,500 million (including
subsidiaries). The K stores accounted for 40 % of the Finnish grocery sales.
The market share of specialized K stores in their own fields ranges from 10 %
to 40 %.

     Street address: Kesko Oy, Satamakatu 3, SF-00160 Helsinki. Mailing
address: P.O. Box 135, SF-00161 Helsinki. Telephone: [phone]. Telex:
124748 kpk sf. Telefax: 358-0-655 473.

     Tukkukauppojen Oy, Tuko, the Central Company of the nation wide T Group.
The T Group consists of Tuko, regional private wholesale companies, 1,630
retail outlets of daily consumer goods, and nearly 500 Rautia hardware and
other speciality stores.

     The main trading areas of Tuko and the whole T Group are current consumer
goods, department store trade, agricultural and hardware supplies.

     Agribusiness takes one fifth of the market and the hardware section is
equally successful.

     Tuko's aggregate turnover in 1989 was FIM 17,300 million.

     Street address: Tuko, Tyopajakatu 13, SF-00580 Helsinki. Mailing
address: P.O. Box 24, SF-00581 Helsinki. Telephone: [phone]. Telex:
122722. Telefax: 358-0-619 6157.

     The Cooperative Eka Corporation is a service-oriented nationwide
conglomerate, owned by 370,000 members. The principal lines of the company
are retail trade (Tradeka), construction (Haka Corporation Ltd), insurance
(Kansa Corporation Ltd) as well as hotel and restaurant business (Restel.)

     In 1989 the turnover of Eka Corporation was FIM 20.3 billion and the
number of employees 21,700.

     Street address: Eka, Hameentie 19, SF-00500 Helsinki. Mailing address:
P.O. Box 72, SF-00501 Helsinki. Telephone:  [phone]. Telex: 124454 eka
sf. Telefax: 358-0-733 2921.

     The S Group is a conglomerate of cooperative companies based on the
enterprise, collaboration and ownership of private citizens, and formed by
cooperative societies and SOK CO-OP with subsidiaries. At the beginning of
1990 cooperative societies numbered 76 and had 1,533 business units including
45 department stores, 356 markets, 45 hotels and 243 restaurants and cafes.
At present the whole S Group employs 25,146 and the total membership of
societies is 574,000.

     Street address: SOK, Vilhonkatu 7, SF-00100 Helsinki. Mailing address:
P.O. Box 460, SF-00101 Helsinki. Telephone: [phone]. Telex: 124456 sokpk
sf. Telegrams: keskuskunta. Telefax: 358-0-188 2332.

     Tukkukaupan Keskusliitto, TKKL, The Federation of Finnish Wholesalers and
Importers, is the national federation for wholesale, import and department
store trade. Its membership consists of more than 800 wholesale and import
companies, which represent 24 different branches.

     The combined sales of TKKL wholesalers, importers and department stores
totalled FIM 93 billion in 1988.

     Street address: TKKL, Mannerheimintie 76 A, SF-00250 Helsinki. Mailing
address: P.O. Box 150, SF-00251 Helsinki. Telephone: [phone].
Telefax: 358-0-496 142.

     Vahittaiskaupan Keskusliitto, VKL, Finnish Retail Federation, is the
retail trade's own central organization. It represent 26 member organizations
in different sectors, both food and non-food which number about 12 000 shops
in all.

     Street address: VKL, Mannerheimintie 76 B, SF-00250 Helsinki. Mailing
address: P.O. Box 35, SF-00251 Helsinki. Telephone: [phone].

     Wholesale Cooperative Society Hankkija. Address: Mikkolantie 1, SF-00640
Helsinki. Mailing address: P.O. Box 80, SF-00101 Helsinki. Telephone:
358-0-7291. Telex: 121554 hjahk sf. Telefax: 358-0-729 2612, 729 3625.

     Foreign trade agents have their own central organization: Finnish Foreign
Trade Agents' Federation. Address: Museokatu 9 B 21, SF-00100 Helsinki.
Telephone: [phone].

     The public sector constitutes a considerable part of the market. The
central buying agency for the State is Valtion Hankintakeskus, VHK, Government
Purchasing Centre. Address: Valimotie