Sweden Company Formation

INTRODUCTION TO REGISTERING A COMPANY IN SWEDEN

Company formation in Sweden is ranked as the 14th best country in the world for conducting business.Registering a company in Sweden can benefit foreign investor with a political stable and economically very attractive with strong consumer purchasing power and international competitive industry.

What are the main types of Company Formation Sweden?

The five most popular forms of corporate structure in Sweden are as follows:

private limited company
public limited company
branch office of a foreign company
partnership
sole trader

What are the main features of a private limited company in Sweden?

suitable for even the smallest company
board may consist of just one member, plus a deputy
minimum share capital is SEK 50,000
the board is liable for the company debts and “the Company can enter into agreements and is liable for its debts”

What are the main features of a public limited company?

standard format for large companies
minimum share capital is SEK 500,000 (€53,568)
board of directors to have at least three members
managing director and 50% of board must be resident in EEA

What are the reporting requirements for Swedish limited companies?

Irrespective of size and whether it is private or public, a limited company has to file annual accounts with the Patent and Registration Office. In addition, the annual report has to be audited only if the company has registered auditor in records and exceeding certain number in sales.

What are the main features of a branch office in Sweden?

A foreign company that wishes to operate in Sweden without establishing a subsidiary can set up a branch office instead. The branch must have a managing director who should be resident in an EEA country. The Swedish branch of a foreign company is taxed on its profits as if it was a Swedish limited company, but losses may be tax-deductible in the foreign company’s jurisdiction. All branches are required to file annual accounts of the mother company, annual tax return must be filed.

How do partnerships work?

There are two kinds of partnership under Swedish corporate law. A general partnership is a trading relationship between two or more people and, even though the partnership may be a legal entity in its own right, the partners are personally liable, joint and several. With a limited partnership, however, there is always at least one partner with limited liability, as well as one partner with unlimited liability for all debts.

What about sole traders?

A sole trader is a recognized form of business enterprise but does not comprise a legal entity. The business is run by a single individual who is personally liable for all debts that may be incurred. Annual accounts are required as an appendix to the owner’s personal tax return, but there is no audit requirement.

How easy is it to recruit staff in Sweden?

Sweden has the best-educated workforce in the world after the US and Canada, a factor that is widely cited by foreign companies in deciding whether to invest here. Unemployment has been rising in recent years and there should be no shortage of applicants for jobs. Recruitment agencies abound in Sweden. We have our own network of local recruitment specialists – please contact us for details on swedish company formation.

What is the regulatory environment like?

There are few regulations governing foreign ownership or business operations and profits can be freely remitted abroad. The labor market is highly regulated, and subject to laws on employee contracts, the working environment and corporate decision-making. It is essential to take legal advice before offering or entering into any kind of employment contract. We can help you with this – just contact us for details on incorporating a company in Sweden.

Are there financial incentives available?

There are no general incentives for foreign companies in Sweden but interest-free loans may be available for investment in regional development zones. There are specific tax breaks for foreign companies that need to recruit specialist personnel from abroad, such as technical experts, researchers and top managers.

Please contact EuroCompanyFormations.com for help with opening a Swedish company.