Many foreigners living in Finland hold an employee residence permit with a 4-year extension and later decide to leave their job to start their own business or become a shareholder in an existing company. At this stage, one key question arises:
“Can I operate a business with my current residence permit based on work or do I need to apply for a new one?”
Understanding the correct procedure is essential, as making the wrong move can put your residence status at risk. In Finland, an employee residence permit is valid only for salaried work in a specific field and position. You have the right to start a company or become a shareholder in a company while continuing your salaried job.
If you leave your job and begin operating through your own company (either as a founder or partner) you must submit a new application for an entrepreneur residence permit to Migri. Continuing business activities without the correct permit type may lead to serious immigration consequences.
Key points Migri considers in entrepreneur permit applications
When applying for an entrepreneur residence permit, ELY-Keskus evaluates the actual business activity and financial sustainability of the company.
Important factors include:
- Whether the company is actively operating
- Proof of regular and sufficient income
- A realistic and well-structured business model
- The applicant’s ability to financially support themselves in Finland
Newly established companies with no revenue or unclear operations may be assessed negatively.
Risk of losing your residence permit
If an entrepreneur residence permit application is rejected and the applicant is not employed as a salaried worker at the time, there is a real risk of losing the existing residence permit. For this reason, timing, preparation, and legal strategy are extremely important when transitioning from employment to entrepreneurship.
Duration of the new residence permit
Even if you currently hold a 4-year employee residence permit, an entrepreneur residence permit is usually granted for 1–2 years initially. The length of the permit depends on: The company’s financial performance, your personal income level, the long-term sustainability of the business.
In the past, after receiving a 4-year extension, transitions to entrepreneurship often went unnoticed until the permanent residence stage. However, due to changes in legislation and enhanced monitoring systems, Migri now typically becomes aware of such changes within a few months and may request clarification and a new permit application.
Professional guidance matters
Each case is assessed individually. Proper preparation, complete documentation and a credible business structure significantly increase the chances of approval and help protect your right to reside in Finland.
If you are considering transitioning from an residence permit based on work to an entrepreneur residence permit, professional guidance can help you avoid costly mistakes.
ENB Consulting Helsinki
We provide expert consulting on residence permits, entrepreneurship and immigration matters in Finland.
🌐 www.enb.fi | 📧 [email protected] | +358417233345