Light Entrepreneurship is gaining popularity in Finland. With the cost of living crisis, high prices and high inflation, we are feeling the pinch of our pockets daily. Even families working full-time in modestly paid careers are struggling at the moment! Who doesn't want to make more money in their spare time, on their terms?
Another reason why to pursue light entrepreneurship is to have a secondary source of income, in case your primary source (your job!) ever falls. These days, lay-offs and redundancies are also quite normal. Right now, in the tech industry, hundreds of thousands of employees are losing their jobs due to lay-offs daily.
As we covered in our first post on this topic, light entrepreneurship can be a convenient option if you want to pursue entrepreneurship but you don't want the hassles and risk that comes with opening a Business. Please read this post on a comprehensive guide on how light entrepreneurship works in Finland.
In today's article, we will have a look at frequently asked questions about this type of venture, and then we will look at the best options for light entrepreneurships that can have you making money by the end of the week!
FREQUENTLY ASKED QUESTIONS
Here are the top frequently asked questions I have come across from people regarding light entrepreneurship in Finland:
1) What is the best invoicing service to use? I want something cheap and functional!
There are many options to invoice as a light entrepreneur in Finland. The biggest, and most prominent name, I have come across is the website UKKO.fi. This website is popular due to the easy-to-use platform, and clear instructions. They charge around 5% of the total amount invoiced. It is free to set up an account, and free to send an invoice through the service. They will charge only at the point when you make a transaction.
Another big company is kevytyrittajat.eezy.fi. This service charges you 5-7% depending on how much you invoice. The more money you invoice through their service, the less percentage they will charge you.
Then, you can look at using a bank such as Osuupankki's light entrepreneurship service. The fee is also 5% and they can help you set up a business in the long run, if you decide to go that route.
2) What taxes do I have to pay? Can I include the income to my personal tax or do I pay company tax?
The way you pay tax depends on whether your invoicing company treats you like a salaried worker or if you are a sole trader. If you sign a contract as a employed person, you need an employee tax card and if you are a business trader, then you need that type of a tax card.
The invoicing company will then withdraw tax based on the percentage on your supplied tax card.
3) Do I have to pay VAT if I earn less than 15,000€ per year?
If you use a service like UKKO.fi, you will need to add VAT to your services, as the VAT relief does not apply. VAT relief in Finland means a company does not need to pay VAT if their total sales are 15,000€ or under in the accounting year. Here are some of the common VAT percentages:
- 24% General rate
- 14% applies to groceries, restaurant and cafes, and feed
- 10% for things like books, newspapers, pharmaceutical products, exercise services, film screenings, entrance fees to events and cultural happenings, passager transport and accommodation services, and royalties from television and radio activities
- 0% for exports outside of the EU, activities related to sales, chartering and renting of VAT-exempt vessels, sales of goods in the EU to VAT-liable buyers, other tax-exempt sales of goods and services tied to international trade, such as tax-exempt sales to diplomats and international organizations.
There are different categories of VAT, and you need to choose the one suitable to your business. Full list of VAT categories can be found here.
4) How do I get health insurance? What about pension? Is YEL covered in light entrepreneurship?
You will need to pay for YEL insurance if you earn more than 8,575.45€ per year. Usually, the invoicing company will handle the payment for you. If you earn under this amount, you also don't have to pay the 1,5% health insurance.
However, if you are not working in a job that offers occupational health insurance, then it is worth looking at private medical insurance, for your own peace of mind.
5) Can I use light entrepreneurship as basis of income for my residence permit? I need to renew it/ apply for a new one?
And then, the biggest questions.....
| Pet-sitting can be fun to do and lucrative as more people adopt pets and have a need for care during holidays, etc. |
HOW DO I GET STARTED?
| Being a food courier can be very lucrative and is a popular option for light entrepreneurs |
WHAT COMPANIES OFFER OPPORTUNITIES AND WHAT CAN I DO?
- You can set up your own business venture such as freelancing in web design, translation, copywriting, virtual assistant or social media manager. This will mean you are responsible for marketing and advertising your services, and all your invoicing is done through the invoicing service. But it is very much like a traditional business venture.
- Another easy way is to set up your own cleaning business, or dog walking/pet sitting. These seem to be quite wanted services in Finland.
- Babysitting is another great service you can provide as a light entrepreneur.
- Fitness services such as private training, massage or nutrition advice are also great and easy ways to make extra income. Please make sure you are qualified in these areas before advising people on their health!
- Wolt for food couriering
- Foodora also in food couriering
- LiveRing Oy provides light entrepreneurship opportunities through raising money for various charities
- Freska provides cleaning services
- Sometimes, travelling circuses through Finland advertise open positions and these are also based through invoicing in Ukko.fi or similar.
