Brexit will have a number of effects on the Finnish Trade Register
Brexit will have an effect on the processing of notifications filed by traders and organisations with the Finnish Trade Register. After the withdrawal, the UK will no longer belong to the European Economic Area, EEA.
In limited liability companies, at least one board member and the managing director must be resident within the EEA. However, the Finnish Patent and Registration Office (PRH) can grant an exemption from this requirement.
The United Kingdom is about to withdraw from the European Union. If an agreement on the withdrawal enters into force by 29 March 2019, a transition period until the end of 2020 will follow. During the transition period, the UK will comply with the legislation and international agreements of the EU and be involved in the single market and the customs union as before.
If no agreement is reached early enough before the withdrawal date, there will be no transition period. The UK will stop applying European Union law and any international agreements binding the EU immediately on 30 March 2019. This means the UK will separate from the EU without any special arrangements.
What effect will Brexit have on the processing of Trade Register notifications?
Brexit will have an effect on the processing of notifications filed by traders and organisations with the Finnish Trade Register. After the withdrawal, the UK will no longer belong to the European Economic Area, EEA.
In limited liability companies, at least one board member and the managing director must be resident within the EEA. However, the Finnish Patent and Registration Office (PRH) can grant an exemption from this requirement.
The board members and the managing director are responsible for their activities to the company, the shareholders or someone else. To ensure this responsibility, it is required that the enforcement of judgements under the Finnish law apply to at least one of the board members and the managing director.
What effect will Brexit have on exemptions granted due to place of residence?
In practice, we grant exemptions due to place of residence only to persons living permanently in countries that have acceded to the Lugano Convention.
The Convention is a general agreement on jurisdiction and the enforcement of judgements in civil matters.
The UK has not acceded to the Lugano Convention and has been bound by it only because of the EU membership.
A consequence of Brexit is that not all the board members of a limited liability company can have their permanent place of residence in the UK. If the managing director of the company lives permanently in the UK, he or she will be granted an exemption only if at least one of the board members lives permanently within the EEA.
A trader living in the UK will need a permit to set up a branch in Finland. Under the Finnish Act on the Right to Carry on a Trade, the trader must have a representative who is entitled to receive summons and other notifications on behalf of the trader. The representative must be resident in Finland, and the Trade Register must be notified of the representative.
For more information please contact:
Jouko Koitto
Leading Legal Counsel
Tel. +358 29 509 5550
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