According to the government's proposal, the trade register would mainly switch to electronic transactions in 2026.
Article continues below
In the future, companies could also have to pay for neglecting to report register information. The aim of the changes is to improve the up-to-dateness, reliability and business security of the trade register.
The government submitted its proposals for the Trade Register Act and the Business Activity Act to the Parliament on 27 October 2022.
The Trade Register managed by the Patent and Registration Board (PRH) is a public register of Finnish companies. The register gathers basic information about companies and is used, among other things, to check the company's responsible persons. The information available from the register is widely used in society.
Currently, electronic transactions in the trade register are mainly voluntary. Electronic services are widely used. The government proposes that in the future companies would have to do business in the trade register mainly electronically. All but private entrepreneurs, associations and foundations should submit information to the register electronically.
"The reform strengthens the transparency of business operations and the reliability of register data, which benefits the business world, authorities and other users of register data. Digitization streamlines services and makes everyday life easier for both companies and PRH, which administers the register," emphasizes Labor Minister Tuula Haatainen .
The reform also aims to reduce the risk of business takeovers and other abuses related to the trade register. However, the goal is to ensure that the processing of notifications is not delayed and that companies are not burdened with too much administrative burden.
PRH already offers companies voluntary security-enhancing services, the implementation of which is highly recommended for companies.
In order for the register to serve companies and authorities as well as possible, it must remain as up-to-date as possible. To ensure this, key companies, i.e. limited liability companies and cooperatives, would in the future be obliged to check the information in the register
nnually.
In the future, PRH could impose a fee for failure to report to the trade register if the company does not provide the required information. Joint-stock companies and cooperatives could also be charged a fee for late financial statements.
In the future, private entrepreneurs would not have the obligation to register in the trade register. This would not change the obligation of entrepreneurs to register, for example, in the register of the Tax Administration.
Private entrepreneurs could continue to register in the trade register if they wanted, in which case they would also be subject to the obligations of the trade register. In the future, the business name used in business activities can only be registered for a company registered in the trade register.
Today, for example, neglecting to report financial statements can lead to the removal of a limited company or cooperative from the register. The government proposes that in the future the company could also be removed from the register for neglecting to notify the beneficial owners referred to in the Money Laundering Act.
The reform also includes other changes. In the future, the authorities should, for example, obtain the Trade Register information they need directly from the Trade Register or another source and not from the company. The reform would also prepare for the automatic processing of trade register notifications.
The laws would generally enter into force in the first half of 2023, but they would partially apply only from 2025 and 2026. The obligation to conduct electronic transactions will only come into force from the beginning of 2026. ■