How to win government contracts and tenders in Finland

Navigating Government Contracting in Finland: A Comprehensive Guide for Businesses

Finland offers significant opportunities for companies interested in securing governmental contracts. Understanding the robust regulatory framework, essential documentation and registration requirements, compliance mechanisms, and digital procurement platforms is crucial. Ensuring alignment with both national regulations and EU directives ensures smoother and more competitive tender processes for businesses of all sizes, fostering transparency, integrity, and economic fairness.

Legal Framework Governing Public Contracts

Key Legislation

The Finnish public procurement system is primarily regulated by two main statutes effective since January 2017:

• Act on Public Contracts and Concession Contracts (No 1397/2016): This act implements EU Directive 2014/24/EU, covering general public sector procurement for works, goods, and services, excluding utilities and sensitive security sectors.
• Act on Public Contracts in Special Sectors (No 1398/2016): Implementing EU Directive 2014/25/EU, it covers procurement in the water, energy, transport, and postal services sectors.
• Act on Defence and Security Procurements: Governing purchases in sensitive sectors like defence and security, enforcing additional confidentiality safeguards.

Role of International Agreements

As part of the European Union, Finland adheres to the World Trade Organization's Government Procurement Agreement (WTO GPA). The GPA ensures non-discriminatory access for qualified international suppliers from member states, enhancing fair competition and transparency in the Finnish public procurement market.

Registration Requirements for Prospective Bidders

Mandatory Registrations

Before bidding, suppliers must ensure their registration in several crucial national databases:

• Prepayment Register: Demonstrating compliance with social security and tax obligations.
• Employer Register: Validating adherence to legal employment practices.
• VAT Register: Confirming VAT registration status ensuring proper tax handling in procurement procedures.
• Trade Register: Showing legitimate business operations under Finnish laws.

Sector-Specific Considerations

Specialized sectors like defence or security have additional registration prerequisites and stricter compliance checks. Thorough understanding of relevant procurement legislation in these sectors is essential.

Documentation Obligations Under Finnish Law

Tax Payment Status Documentation

Businesses must provide certification from the Finnish Tax Administration (Vero.fi) verifying they have no outstanding income tax or VAT obligations. This documentation is vital for procurement opportunities, especially for contracts above stipulated threshold limits.

Pension Insurance and Occupational Health Certificates

Companies must annually demonstrate compliance with mandatory pension insurance (e.g., PYEL, MELA). Additionally, proof of comprehensive employee occupational health coverage is required to validate responsible personnel practices.

Compliance with Collective Agreements

Legal procurement procedures mandate that bidders comply with applicable collective labour agreements. Companies must adhere to employment terms, salary standards, and worker benefits outlined by industry-specific collective agreements to maintain competitive and fair bidding.

Compliance Mechanisms and Regulatory Oversight

Finnish Competition and Consumer Authority (FCCA)

The FCCA monitors and oversees public procurement processes across Finland to ensure transparency and compliance. Businesses should understand FCCA guidelines and seek compliance proactively to avoid disqualifications or penalties.

Finnish Market Court

Companies disputing award decisions or procedural fairness can appeal through the Market Court, which independently adjudicates procurement-related grievances to maintain credibility and fairness within the system.

Digital Transformation in Finnish Public Procurement

Centralized Digital Platforms Operated by Hansel Ltd.

Hansel Ltd, Finland's central procurement organization, manages multiple digital platforms designed to streamline processes and enhance participation:

• Hilma Portal: The official national platform publishing public procurement notices above threshold limits, aligning with EU procurement notice publication systems like Tenders Electronic Daily (TED).
• Cloudia Planning and eTendering Solutions: These tools enhance efficiency by supporting electronic preparation, submission, and management of bids, ensuring greater transparency and reducing barriers for SMEs.

Conclusion

To succeed in obtaining government contracts in Finland, companies must thoroughly understand and adhere to the legal framework, mandatory registrations, and documentation necessary for compliance. Leveraging Finland's digital procurement platforms managed by Hansel Ltd further enhances efficiency and competitive advantage. By proactively aligning business practices with the Finnish government's procurement standards—rooted in EU guidelines and international agreements—businesses reinforce their eligibility, compliance, and chances of success in the Finnish public sector marketplace.

[1] https://tyosuojelu.fi/en/grey-economy/contractor-s-obligations-and-liability
[2] https://en.wikipedia.org/wiki/Government_procurement
[3] https://www.govinfo.gov/content/pkg/FR-2025-03-04/pdf/FR-2025-03-04.pdf
[4] https://en.wikipedia.org/wiki/United_Nations_Convention_on_Contracts_for_the_International_Sale_of_Goods
[5] https://www.oecd.org/en/publications/the-way-forward-for-digital-public-procurement-in-ireland_4691afda-en.html
[6] https://www.goldmansachs.com/pdfs/insights/goldman-sachs-research/trump-tariffs-mostly-talk-or-big-action/TOM_tariffs_REDACTED.pdf
[7] https://ustr.gov/sites/default/files/files/reports/2025/2025%20Trade%20Policy%20Agenda%20WTO%20at%2030%20and%202024%20Annual%20Report%2002282025%20--%20FINAL.pdf
[8] https://www.lloydsbanktrade.com/en/market-potential/finland/trade-profile
[9] https://www.oecd.org/content/dam/oecd/en/publications/reports/2025/02/the-way-forward-for-digital-public-procurement-in-ireland_e4f2557c/4691afda-en.pdf
[10] https://www.summitpartners.com/news
[11] https://www.legal500.com/guides/chapter/greece-public-procurement/
[12] https://icom.museum/wp-content/uploads/2025/02/IRAPFM-FINAL_7fev_2025-1.pdf
[13] https://www.vero.fi/en/detailed-guidance/guidance/47978/transfer-pricing-documentation/
[14] https://vm.fi/en/reform-of-regional-state-administration