Skip to content

Instruction for purchases from Group and associated companies

When making purchases, pay special attention to situations where there is an interest relationship between the beneficiary and the company from which the services are purchased. When planning a project and preparing a cost estimate, check whether the project may include purchased services from group or interest companies. Project reporting is also different if there are interest purchases in the project. See the instructions on this page and read more in the funding terms and conditions.

Business Finland's definition for an associated company

Companies are considered each other’s associated companies if at least 20% of one company's share capital or corresponding equity is directly or indirectly owned or controlled by the other company.

This rule also applies when the association arises through personal ownership.

Business Finland may also consider companies to be associated if one company has a controlling interest in the other company or can otherwise influence where the other company makes its purchases.
Such a situation may arise for instance in connection with

  • Board membership,
  • position of responsibility,
  • family member involvement,
  • employee involvement, or
  • position as a funding provider

Business Finland inspects the shareholders, holdings, shareholders of associations, responsible persons and employees of the beneficiary. In addition, connections with other companies will be checked.

During project monitoring or auditing, data from parallel and previous projects and possibly information from funding granted by other authorities are also checked.

What is a Group company?

Group companies are associated companies but for Business Finland’s funding purposes they are treated differently from other associated companies. For example, in connection with de minimis funding and Young Innovative Companies funding, intra-Group service purchases are acceptable, but purchases from other associated companies are not.

A Group is formed when an accountable entity has a controlling interest, as specified in the law, in another company. In this situation, the controlling company is the parent and the other company is a subsidiary. The parent and its subsidiaries are also referred to as Group companies.

A Group relationship referred to in the Accounting Act is also formed if an accountable entity, together with one or more subsidiaries, or the accountable entity’s subsidiary, together with one or more subsidiaries, has a controlling interest in another company.

Costs accepted as purchases from group or associated companies

How are interest purchases declared?

Business Finland approves the purchased service from a Group or associated company without margin. In order to demonstrate the non-profit nature of the services, the Group or associated company must declare Business Finland the costs arising from the project with separate templates.

In connection with the final report, an auditor’s report prepared by an independent auditor must be supplied of the costs recorded by a Group or associated company.

If there are several Group or associated companies, each company will supply its own cost statement and auditor’s report.

How is the information delivered to Business Finland?

  • The beneficiary prepares its own cost statement in the Online service and records non-profit services purchased and paid for under “Services purchased within the Group and from associated companies”.
  • With its cost statement, the beneficiary attaches cost statements (e.g. in PDF) prepared using the Group and associated companies’ templates, and, in connection with final reporting, the auditor’s report of the Group and associated companies’ auditor.