Govt moves to simplify processing of startup entrepreneur residence permit

The government has taken an initiative to simplify the process for obtaining a residence permit for a startup entrepreneur, said the Ministry of Economic Affairs and Employment in a press release on Thursday.

The government proposed that entrepreneurs would no longer apply for a separate eligibility statement from Business Finland free of charge.

In future, the statement from Business Finland would be included in the residence permit application, which is subject to a fee.

The government said that the is expected to prevent incomplete applications lacking legitimate purpose, save resources and improve the flow of information between authorities.

The conditions for granting a residence permit for a startup entrepreneur would be clarified and laid down in law.

Under the current rules, an applicant for a residence permit for a startup entrepreneur must obtain in advance an eligibility statement from Business Finland. The statement evaluates whether the startup company shows potential for international growth. A substantial number of these statements have been negative, resulting in entrepreneurs being refused residence permits and failing to establish startups in Finland. Abuse has been suspected in some cases.

The changes are not expected to significantly impact Finland’s ability to attract international startup entrepreneurs. Instead, the residence permit process would be easier for applicants who sincerely plan to establish a startup company in Finland, said the ministry.

The government also proposed that a foreign national applying for a first residence permit for an entrepreneur could apply for a Finnish business identity code after the permit has been granted.

The current rules require the applicant already to have a Finnish business ID before submitting the application, even though the permit will not necessarily be granted.

The amendments are scheduled to enter into force on 12 January 2028.