Company Set Up In Sweden
The cold weather of this huge and picturesque Scandinavian state is no true reflection of its rapidly heating up the Sweden business opportunities scene! Just like every other part of the country, the market in Sweden is seeing rapid growth with a pristine record. Products with the ‘Made in Sweden’ label are some of the most popular worldwide.
With plentiful natural resources including copper, timber, iron and more; the industries in Sweden are able to function independently. Sweden’s top industries are material sciences, manufacturing, life sciences and automotive production.
Foreign investors need to grab the opportunity for company formation in Sweden now and take advantage of the stable economy.
Another area where Sweden has been excelling in is expansion into green technologies and sustainable production as well as eco-friendly energy resources. As usual, Sweden is at the forefront of cutting-edge development for the science of the future!
A high-skills workforce and top-notch infrastructure make Sweden one of the most lucrative countries to set up a business in. When it’s quality in work and production investors are looking for, company set up in Sweden is their best bet!
Forms Of Companies In Sweden
- AB – “privataktiebolag” –Private Limited Liability Company
- AB– “publiktaktiebolag” –Public Limited Liability Company
- HB – “handelsbolag” – General Partnership
- KB – “komanditbolag” – Limited Partnership
- “Enskildfirma” – Sole Proprietorship
- “Filial” – Branch
Private and public AB, the most popular common company forms in Sweden
In Sweden, most foreign investors opt for one of the limited company types.
Most entrepreneurs choose to establish a private AB which may have between 1 to 200 shareholders. There have to be at least 2 board members (directors) or 1 board member and 1 deputy. 50% of the management board must be residents of EEA. If this is not possible, a contact person, who is a Swedish resident, must be appointed. CompyCo can help provide this service too.
A Swedish public AB corporation may trade at the Public Exchange Market, and the minimum share if 500 000 SEK. There have to be at least 3 board members. 50% of them must be EEA residents.
Fundamentals Of A Limited Liability Company
Corporate Tax in Sweden
VAT in Sweden
Fundamentals of limited liability companies in Sweden
|Limited liability company||Aktiebolag - A.B.|
|Minimum Share capital||50 000 SEK (4680 EUR)|
|Registered office required||Yes|
|Physical office required||No|
|Min. number of Shareholders||1|
|Min. number of Directors||2|
|Local Director required||Yes (Directors are board members)|
|Other requirements||1 board members and 1 deputy or more members. 50% of them must be EEA residents|
|Bank signatory must travel||Yes, but it is not mandatory to have bank account in Sweden. It can be opened in any EU country.|
|Timescale for company formation||10 days|
|Timescale for bank account opening||7 day|
|Timescale for obtaining VAT number||14 days|
|Statutory audit requirements||Yes|
|Shelf companies available||Yes|
How can I set up my company in Sweden?
The registration process regarding company set up in Sweden takes about 4 weeks if you choose to have your required bank account opened in the country.
The bank account is necessary from the start as the share capital must be paid. After this the bank will issue the share capital certificate to you. This certificate is one of the required documents for business registration.
The bank account may be in another EU country. However, the quickest option is to purchase a shelf company, which you can do within a week. You can also pay the share capital in a year’s time. This speeds up the whole process of Sweden company formation.
CompyCo offers remote company registration, complete with the opening of an online bank account. This means that you don’t have to travel, and all the details will be taken care of in no time. We also offer the shelf company option which is faster, but much more expensive.
First, choose the type of company you want, the company’s name and register it through the Swedish Companies Registration Office (Bolagsverket). The details of the company and its shareholders must be submitted as well. If you’re pursuing the shelf company option, the details must be changed.
The final part of the process is getting a taxpayer ID and a VAT number (called MOMS-nummer in Swedish) through the Swedish Tax Office (Skatteverket). If you’re employing people you must also get registered to be an employer.
Established investors and businesspeople that are looking to upgrade their products and their profits should look into investing in Sweden. With stable political and civil environments, production and business in Sweden are consistent and lucrative.
CompyCo works hard to make sure we give you economical, tailored business solutions that are designed for your company’s needs. Being involved in company set up in Sweden and other European countries for years has given us unique access to a whole range of experts that assist us in ensuring all processes run smoothly.
Our team of expert executives from the incorporation, taxation, banking and employment sectors will advise you on the best steps towards your company set up in Sweden as well as your business’ smooth sailing at low costs.
From guiding you about the company type you should select to going through all of the licensing paperwork and maintaining your employee base, our complete services leave you free to focus on being an involved owner and investor while we deal with the logistical work.
Bank Account Opening
Just like the rest of the country, Sweden’s banks are efficient and fast. Sweden’s banks are almost cashless now, which means that maintaining an account online remotely is much easier than in a country where everything must be done on paper. For non-residents opening up a bank account, there are specific requirements you must meet before you can open an account.
In order to pay the share capital, you need to open a Swedish bank account. However, having a Swedish bank account will also make your transactions more efficient and make your business operations more convenient.
Every bank has its own set of requirements, which may range from the type of business activity you’ll engage in to your country of residence. However, there are certain requirements that are usually common among all financial institutions in Sweden; these are:
- Passport with Swedish visa
- Financial documentation
- Swedish address detai
Need more information about opening a bank account remotely? Head over here.
Accounting & Taxation
Here are a few accounting and taxation obligations to take into consideration:
- The tax year is the calendar year in Sweden.
- Taxable profits are trading profits, investments and the sale of assets for more than their original cost.
- All businesses have to keep accounting books.
- The corporate income tax is levied at 21.4%. It is to be decreased to 20.6% in 2021.
- There is a special tax regime on place for qualified experts, scientists, executives.
- Every company must submit the annual report once a year, no later than 7 months after the end of fiscal year. If the company has no activities during the year, this is still an obligation.
- Declarations must be submitted at a start of the month. Delayed declarations will result in penalty by the tax office.
How can you employ staff in Sweden?
Setting up a company in a country that you’re not very familiar with can be difficult. Employment laws and workplace expectations are also different everywhere you go. Working with an expert HR team is key when dealing with employment in a place where you don’t even speak the language!
CompyCo provides all kinds of recruitment solutions. By incorporating detailed hiring processes with the Swedish business culture and your company’s needs, our team can fit you with efficient and innovative employees. We can help you figure out all kinds of employment agreements, recruiting new talent, ensuring your business is compliant with local regulations, and offering ongoing payroll services.
If you’re a foreign company that only needs to employ a person in Sweden to work from home, we can even avoid local company registration for you and register your non-resident company as an employer. It’s in your best interest to save on costs, which is why it’s our number one goal!
With the fourth happiest workforce available in Sweden, you will have at your disposal a team of hard workers that will go the extra mile to deliver results for you.
Have any questions? Take a look at our HR services page for more information about our International HR services!