Establishing a Business ID as a Private Trader is the most popular and well-known form of entrepreneurship in Finland. Register yourself to our invoicing service free-of-charge and start doing business with a Business ID.
Start your journey as a private trader today
Setting up a Business ID as a private trader is ideal for you if you work alone and have no plans to hire other staff.
A major advantage of being a private trader is the freedom of choice and the ability to do exactly what you want without the opinions of others – all this plus owning a Business ID that opens the world for you as an entrepreneur to do work that might not be possible as a light entrepreneur.
Running a business as a private trader is a less administrative form of entrepreneurship, which does not necessarily require initial capital. A self-employed person setting up a Business ID as a private trader works as a small entrepreneur, either full-time or part-time, using his or her skills. The be able to become a self-employed person through FREE.fi you must be a resident in the European Economic Area and be at least 18 years old. However, minors can also be self-employed as private traders with the consent of their guardians.
Registering & invoicing
Private traders in Finland
Work industry independent
With FREE, you can focus on the essentials and forget about bureaucracy.
FREE.fi offers a reasonable service fee and valuable benefits for the user. We take care of the paperwork what comes to being an entrepreneur while you can focus on your business.
The price of our private trader service is 5%, which includes the service fee + all the benefits. Our monthly service fee is in minimum €20/month (max. €1500/year). The service fee covers the administration of running your Business ID’s bookkeeping, which includes accounting, tax declarations (VAT + income tax) and a customer reserve account.
› Get to know the price list and find out more about the benefits in detail
Service fee for the paid invoice
Sending an invoice
Service fee cap per year
A private trader is subject to the same accounting obligations as other Business ID entrepreneurs. Since the assets of the private traders are, in practice, common with those of the business, the accounts make it possible to separate the business’s costs from the entrepreneur’s personal expenditure.
Single-entry bookkeeping is usually sufficient for a private trader, but in some cases the entrepreneur may be required to keep double-entry books. The bookkeeping can be a considerable burden, which is why it is common for the self-employed entrepreneur to outsource it. The most convenient way to do this is through FREE – without hiring a separate accountant.
As a private trader, the total business income is calculated as the self-employed person’s income for tax purposes by first deducting business expenses. As with other types of business, a private trader is liable to VAT if he or she is engaged in the sale of goods and/or services and has a turnover of at least €15 000 for the financial year. If in doubt, we always recommend that you apply for VAT liability, especially if your clientele consists of businesses that can deduct a proportion of the VAT on your invoice.
FREE.fi will take care of paying VAT for you, as well as filing a VAT return with the Tax Administration. The same applies to the periodic tax return, which is usually submitted on a monthly basis.
"When I heard about FREE.fi, I realized that this is my thing. The more I have done business with Free, the better the customer service has gotten. You can ask anything from the customer service and you will get an answer quickly."
"I chose FREE.fi for the pink colour. I got lucky with my choice, because FREE.fi workers turned out to be efficient and supportive people."
"I have used FREE.fi's light entrepreneurship services for many years. I chose FREE.fi because the company's operations are professional, knowledgeable and efficient. You always get help when you need it."
"In the beginning it was not easy, because there was so much new information, and a lot to clarify regarding taxes and insurances. I wasn't sure what information was relevant and applied to me specifically. Now that I'm FREE.fi's customer, it doesn't matter what is my background. There are a lot less things to clarify now."
Becoming a private trader is worthwhile if you have a clear vision for your business, existing customers and have, for example, tested the viability of your business idea through light entrepreneurship. Becoming a private trader is less risky than, for example, limited company ownership, but it is worth bearing in mind that the private trader is always personally liable for the debts and obligations of the business.
Becoming a private trader is suitable for a person who wants to be self-employed as an entrepreneur and set up his/her own Business ID for running the business. Private trader is well suited to selling one’s own work or goods and for people whose business idea does not require large loans or machinery/stock of goods.
Sole trader, sole proprietor, small-business owner, microentrepreneur, self-employed entrepreneur is the same as a private trader. A private trader is an entrepreneur who has his or her own Business ID and often employs himself or herself solely using his or her own skills. It is one of the most popular entrepreneurship forms in Finland.
