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Ease of Doing Business in

Finland

Finland Download Profile (1711.5KB, pdf)
Region OECD high income
Income Category High income
Population 5,482,013
GNI Per Capita (US$) 46,360
City covered Helsinki

190

1

DB 2017 Rank

1

100

DB 2017 DTF (% points)

  • local_library
  • group
Topics DB 2017 Rank DB 2016 Rank info_outline Change in Rank DB 2017 DTF (% points) info_outline DB 2016 DTF (% points) info_outline Change in DTF (% points) info_outline
Overall 13 12 down
1
80.84 80.85 down
0.01
Starting a Business 28 26 down
2
93.13 93.11 up
0.02
Dealing with Construction Permits 40 36 down
4
75.72 75.82 down
0.10
Getting Electricity 18 16 down
2
88.97 88.97
-
Registering Property 20 19 down
1
82.94 82.94
-
Getting Credit 44 42 down
2
65.00 65.00
-
Protecting Minority Investors 70 69 down
1
56.67 56.67
-
Paying Taxes 13 12 down
1
90.23 90.31 down
0.08
Trading across Borders 33 33
-
92.44 92.44
-
Enforcing Contracts 30 29 down
1
69.40 69.40
-
Resolving Insolvency 1 1
-
93.89 93.81 up
0.08

DB 2017 Rank:

40

DB 2016 Rank:

36

Change in Rank:

down4

DB 2017 DTF (% points):

75.72

DB 2016 DTF (% points):

75.82

Change in DTF (% points):

down0.10

STANDARDIZED WAREHOUSE
Estimated value of warehouse EUR 1,900,881
City Helsinki
Indicator Finland OECD high income
Procedures (number) info_outline 17 12.1
Time (days) info_outline 65 152.1
Cost (% of warehouse value) info_outline 0.9 1.6
Building quality control index (0-15) info_outline 10 11.3
  • Measure of efficiency
    No. Procedure Time to Complete Associated Costs
    1

    Obtain building permit maps and extract from the Real Estate Office

    Agency: Real Estate Office

    The Real Estate Office issues the building permits maps, which must be attached as originals to the application. The applicant cannot use a map that is older than 3 months. The fee also includes the extract from the Real Estate Register and the report of the build-site height.

    12 days EUR 170
    * 2

    Obtain official opinion on the connection of the wastewater drain and water pipeline

    Agency: HSY Helsinki Region Environmental Services Authority, HSY Water

    The official opinion on the connection of the wastewater drain and the water pipeline must be attached to the building permit application if the building will be connected to the public water distribution system and to the public sewerage system. The opinion is issued by the municipal organization in charge of the water supply (in the greater Helsinki area, Helsinki Water). The cost is included in the connection charge.

    7 days no charge
    * 3

    Schedule start-up meeting

    Agency: Building Supervision Authority

    BuildCo must set a date for a startup meeting with the building supervision authority and convene all necessary persons to the meeting. The meeting must be held before the beginning of construction (some excavation work can be done, but the foundation may not be laid before the meeting). At a minimum, the following persons should attend the meeting: the person starting the building project, the head designer, and the site manager. The meeting attendees must be agreed with the building supervision authority.

    7 days no charge
    * 4

    Obtain extract from the Trade Register

    Agency: Trade Register

    This procedure is usually required when the building permit applicant is a company (which is the case in the Doing Business case study). The extract from the Trade Register costs EUR 13.00 for the delivery and EUR 8.00 for invoicing.

    1 day EUR 21
    * 5

    Notify the neighbors of the building permit application

    Agency: Owners and titleholders of surrounding properties

    According to Section 133 of the Land Use and Building Act, neighbours shall be notified when an application for a building permit is submitted, unless notification is clearly not necessary with regard to the neighbours' interest, due to the smallness or location of the project, or to the contents of the plan. 'Neighbour' refers to owners and other titleholders of adjacent or opposite properties. The fact that the application has been submitted shall at the same time be publicized on the building site by suitable means.
    When needed, a review shall be conducted on the building site in order to assess how the building fits in with the surroundings and the impact of construction, and in order to hear the neighbours. The applicant and the titleholders of the neighbouring properties shall be notified of the time and date of the review.

    1 day no charge
    * 6

    Obtain report on the height of the intended construction

    Agency: Real Estate Office

    This report can be obtained any time online from http://kartta.hel.fi/ . The report is required to ensure that the height of the new building is in proportion with other buildings in the same neighborhood. The statutory zoning map/local detailed plan is the only document stating the allowed building height.

    0.5 days no charge
    7

    Obtain building permit

    Agency: Municipal Building Inspection

    The building permit is issued by the Municipal Building Inspection. BuildCo must provide the necessary information to the local building supervision authority to decide on the building permit application. The quality and the extent of the required information depend on the project features.

    The following documentation is usually required for warehouse projects:
    • The completed application form issued by the building supervision authority. The owner or the holder of the building site must sign the form. If there are several owners or holders, all must sign the application form.
    • A power of attorney is required only if a representative files the building permit application (This is not applicable to the warehouse project considered here.)
    • The establishment of the ownership title is required because the building permit can be granted only based on the application made by the owner or the holder of the building site. Usually one of the following documents is presented to the building supervision authority:
    1. The deed of sale of the real estate
    2. The lease contract
    3. The deed of title
    4. The extract from the trade register
    5. The building permit map and the extract from the real estate registry
    6. The decision to deviate from the provisions, regulations, prohibitions, and other restrictions on building and other action must be attached to the application, in original, if the project requires such a decision
    7. The certificate of the decision’s legal validity must be presented before the actual launching of the building project (This is not applicable to the warehouse project.)
    8. The environmental permit is required if the use of the building poses a threat of environmental pollution. The decision on the building permit can be postponed until the environmental permit is attached to the application (This is not applicable to the warehouse project.)
    9. Three master drawings must be attached to the application. One document will be archived with the building supervision authority, and the other will be returned to the applicant with the final decision. The master drawings to be followed in construction master drawings are approved in connection with the grant of the building permit.
    10. Report of the height of the building site
    11. The ground investigation report of the building site. If needed, also enclosed with the building permit application will be an account of the site’s health effects and ground levels, and the type of foundation and any other measures required as a result. This report may be produced by BuildCo.
    12. The official opinion on the connection of the wastewater drain and the water pipeline
    13. Notification to the neighbors. When the building permit application is filed with the building supervision authority, the neighbors must also be notified. The applicant may do this personally by using the official form, obtained from the building supervision authority. Otherwise, subject to a fee, the applicant may request the building supervision authority to conduct the notification.
    14. Forms for official statistics. The building supervision authority must deliver information on building projects to the Population Register Center. Thus, the forms in question must be attached to the application. These forms are available at the building supervision authority or at the public printing center.
    15. The official form on the building designer. Every building project must have a qualified head designer in charge of the construction design and the quality of the design as a whole.

    Other documents are required, as follows:
    1. Working designs
    2. Calculation of permitted building volume
    3. Report on fire load, parking spaces, handling construction waste; on environmental issues, with photographs (can be produced by BuildCo)
    4. Constructional drawings and strength calculations and drawings on ventilation and heating devices, on water and sewage devices, and on bomb shelters and the notification of the bomb shelter

    38 days EUR 9,144
    8

    Receive foundation work inspection

    Agency: Municipality

    1 day no charge
    9

    Receive location inspection from the Real Estate Office

    Agency: Real Estate Office

    The location inspection must be requested from the Real Estate Office after the foundation work is completed. This inspection is held to determine that the building height and location are in accordance with the master drawings.

    1 day EUR 1,520
    10

    Receive structure inspection

    Agency: Municipality

    The inspection of the building structure is conducted after the load-bearing structure and connected insulation works are completed.

    1 day no charge
    11

    Receive ventilation inspection

    Agency: Municipality

    The ventilation inspection is conducted after the completion of the exit flue and the ventilation installation.

    1 day no charge
    12

    Receive sewer and water pipeline inspection

    Agency: HSY Helsinki Region Environmental Services Authority, HSY Water

    The inspection of the sewer and water pipeline fittings is conducted after the completion of these fittings.

    1 day no charge
    13

    Report information to the Finnish Tax Agency

    Agency: Finnish Tax Agency

    The building supervisor (contractor) must provide information on employees at the construction site on a monthly basis since July 2014 to the Finnish Tax agency. In addition, tax rules require that the contractor informs the tax authority (agency) on monthly basis of construction services contracts (including contracting parties, total amount, and duration etc.).

    1 day no charge
    14

    Request and obtain water connection

    Agency: HSY Helsinki Region Environmental Services Authority

    HSY Helsinki Region Environmental Services Authority is responsible for all matters of connections to the water distribution and sewerage systems.

    The procedure for ordering a connection is as follows:
    • Helsinki Water customer service staff provides the new customer with a statement on the connection. The street address of the plot or property is required, as is the owner’s name, address, and phone number.
    • Helsinki Water provides the customer with a preliminary estimate of the recently introduced connection charge.
    • The customer should acquire a building permit for the plot.
    • After the customer has obtained the building permit, Helsinki Water will send the customer the connection charge notice. The property owner can file a complaint within 14 days of receiving the notice. Unless a complaint is made, the proposed charge will be considered as having been accepted by the customer.
    • Water service connection and meter installation will be conducted after the connection charge is paid. The customer is responsible for the construction and maintenance of the connection pipes and conduits and their financing. Before the start of on-site construction work, a supervisor responsible for the construction of the water facility and sewerage system -- approved by the municipal building control officials -- should be assigned. Helsinki Water always takes care of installation of water meters with seals, water main connection with water-sealed joints, and connections to the sewerage system on the customer’s properties. Service charges will be invoiced at rates valid at the time of the order.
    • A connection agreement is concluded.
    • The invoicing procedure is settled.

    3 days EUR 6,469
    15

    Receive fire inspection from the Public Rescue Service

    Agency: Public Rescue Service

    1 day no charge
    16

    Receive final inspection

    Agency: BuildCo

    A building, or a part thereof, shall not be commissioned before it has been finally inspected and approved for use. The minutes of the commissioning inspection of the electrical installation (drafted by the electricity contractor) are necessary for obtaining a use or occupancy permit. This inspection can be performed by BuildCo, provided that the company has qualified employees.

    1 day no charge
    17

    Obtain occupancy permit

    Agency: Municipality

    4 days no charge

    * Takes place simultaneously with previous procedure.

  • Measure of quality
    Answer Score
    Building quality control index (0-15) 10.0
    Quality of building regulations index (0-2) 2.0
    How accessible are building laws and regulations in your economy? (0-1) Available online; Free of charge. 1.0
    Which requirements for obtaining a building permit are clearly specified in the building regulations or on any accessible website, brochure or pamphlet? (0-1) List of required documents; Fees to be paid; Required preapprovals. 1.0
    Quality control before construction index (0-1) 1.0
    Which third-party entities are required by law to verify that the building plans are in compliance with existing building regulations? (0-1) Licensed architect; Licensed engineer. 1.0
    Quality control during construction index (0-3) 2.0
    What types of inspections (if any) are required by law to be carried out during construction? (0-2) Inspections at various phases. 1.0
    Do legally mandated inspections occur in practice during construction? (0-1) Mandatory inspections are always done in practice. 1.0
    Quality control after construction index (0-3) 3.0
    Is there a final inspection required by law to verify that the building was built in accordance with the approved plans and regulations? (0-2) Yes, final inspection is done by government agency. 2.0
    Do legally mandated final inspections occur in practice? (0-1) Final inspection always occurs in practice. 1.0
    Liability and insurance regimes index (0-2) 0.0
    Which parties (if any) are held liable by law for structural flaws or problems in the building once it is in use (Latent Defect Liability or Decennial Liability)? (0-1)  No party is held liable under the law. 0.0
    Which parties (if any) are required by law to obtain an insurance policy to cover possible structural flaws or problems in the building once it is in use (Latent Defect Liability Insurance or Decennial Insurance)? (0-1) No party is required by law to obtain insurance . 0.0
    Professional certifications index (0-4) 2.0
    What are the qualification requirements for the professional responsible for verifying that the architectural plans or drawings are in compliance with existing building regulations? (0-2) Minimum number of years of experience; University degree in architecture or engineering. 1.0
    What are the qualification requirements for the professional who supervises the construction on the ground? (0-2) Minimum number of years of experience; University degree in engineering, construction or construction management. 1.0