Government to reform residence permits for start-up entrepreneurs

The ministerial working group on employment and entrepreneurship outlined changes to residence permits for start-up entrepreneurs on 19 December 2025. The aim is to streamline the permit process for start-up entrepreneurs, especially for those who plan to establish a business in Finland, and to prevent abuses.

The reform is driven by observations that the current system is not effective in attracting start-up entrepreneurs to Finland, in particular. The Ministry of Economic Affairs and Employment examined the need to reform residence permits for entrepreneurs and start-up entrepreneurs. The Government decided on the new policy on the basis of the report.

“Seamless and responsible immigration requires a well-functioning residence permit system. It must be easier for people who want to start a business and build growth in Finland to come here. Based on the proposals of the report, we will begin legislative drafting to improve the residence permit process,” says Minister of Employment Matias Marttinen.

In order to apply for a residence permit for a start-up entrepreneur, the applicant must currently obtain a statement in advance from Business Finland evaluating whether the start-up company shows potential for international growth. Among other things, the evaluation considers the novelty value of innovation. A significant number of the statements from Business Finland have been negative and have failed to result in a residence permit or the applicant moving to Finland as a start-up entrepreneur. There have also been suspicions of abuse in some cases.

Based on the report, the Government decided that there would no longer be a separate advance application for Business Finland’s statement. Instead, the statement would be part of the residence permit application submitted to the Finnish Immigration Service. This would ease the flow of information between the authorities and increase the quality of processing. As a result, an application for a statement from Business Finland would be subject to a fee, similarly to the residence permit application. This would help prevent applications of low quality.

The Government also decided that the first residence permit for an entrepreneur would no longer require a Finnish business identity code if the business activities in Finland have not yet started. To prevent abuse, the Finnish Immigration Service will increase the initial screening of applications and conduct more oral hearings of start-up entrepreneurs. In addition, the conditions for granting an extended permit to a start-up entrepreneur will be clarified.

According to the report, the proposals are estimated not to counteract the efforts to boost Finland’s position in the competition for international start-up entrepreneurs and to streamline work-based immigration. The system will become more functional, particularly from the perspective of real start-up entrepreneurs.

The preparation of legislative amendments will begin at the Ministry of Economic Affairs and Employment in early 2026. The report on the need to reform residence permits for entrepreneurs and start-up entrepreneurs is part of a broader project examining the regulatory vulnerabilities of work-based and education-based residence permits.

Inquiries: 
Tuulia Muuronen, Senior Specialist, Ministry of Economic Affairs and Employment, tel. +358 295 047 329
Teresa Salminen, Special Adviser to the Minister of Employment, tel. +358 295 047 318 (questions to the Minister of Employment)