Start a Business in Sweden - Tailored Assistance
Open a Business in SwedenUpdated on Monday 27th September 2021
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Sweden is one of the most prolific economic in Northern Europe. With modern facilities offered to the general population and businesses, a great infrastructure and a steady economy, Sweden is a great place to set up a company in.
Those who want to start a business in Sweden will find the procedure quite easy, as most of the steps can be completed online. With the help if our lawyers in Sweden, the preparation and filing of the documents will help them establish the desired type of entity in the shortest time possible.
Below, we invite you to find out how to open a business in Sweden and how we can help you.
What to consider before you start a business in Sweden
Before you decide to open a company in Sweden, there are several aspects to consider which can be revealed with the help of a market research. Then, you will need to select the right entity under which you will conduct your operations.
Here are the main types of legal forms you can register in Sweden:
- the sole trader which is suitable for those interested in operating as single entrepreneurs;
- the trading partnership which is a flexible non-corporate entity that can be established by at least 2 members;
- the limited partnership which must also have at least 2 members with different degrees of responsibility towards the business;
- the private limited liability company which by far the preferred legal entity created by local and foreign investors in Sweden;
- the public limited liability company which is suitable for large projects;
- the association that can be created for non-profit purposes.
If you are interested in starting a business in Sweden as a foreigner, we recommend the limited liability company which is easy and simple to set up, but also offers increased protection in case bankruptcy.
Our law firm in Sweden is at your service with detailed information on what it means to register a company from a legal point of view.
Company registration steps in Sweden
A local or foreign investor who wants to start a business in Sweden must complete the same steps. These are:
- draft the necessary documents in accordance with the selected business form;
- file the paperwork with the Swedish Trade Register;
- register with the Tax Authority in Sweden;
- obtain a VAT number (the procedure can be completed the same time with the tax registration);
- register as an employer and apply for the necessary business permits and licenses.
If you want to open a business in Sweden and need guidance, our local lawyers are at your disposal with personalized services. These can also include assistance in applying for a residence permit if you are a foreign citizen who wants to relocate to Sweden in order to run your company.
Share capital requirements when setting up a business in Sweden
If you want to start a business in Sweden, one of the most important things to consider is the minimum share capital required. If for simple business forms such as sole proprietorships and partnerships the law does not impose a specific amount, this is not the case of limited liability companies.
In the case of a private company, the minimum share capital according to the Swedish Company Law is around 5,620 euros, while in the case of a public company, the law imposes at least 56,200 euros as a share capital.
These are usually the most employed business forms when it comes to foreign investors coming to Sweden.
Starting a business in Sweden as a foreigner is simple and fast if you decide to use our services.
How easy is it to start a business in Sweden?
Starting a business in Sweden is considered an easy procedure, mainly because of a low bureaucracy and a straight forward process that consists in few steps, most of them being achieved via internet, through an online platform put in service by the Swedish authorities.
You must firstly open a bank account in which you must deposit the mandatory share capital, then you must submit an application to the Swedish Companies Registration Office in order to obtain the registration certificate (the entire procedure may be done online) and finally you have to go to the Swedish Tax Agency, procedure which must be done two weeks before starting your activity.
After you start your business and you want to hire employees you must be aware of the law’s provisions in this field, otherwise you risk your company’s legal and financial compliance with the Swedish rules and regulations, situation which may lead to a bad reputation, fines and even compulsory closing.
If you want to start a business in Sweden, you can rely on our law firm for assistance and virtual office services.
Hiring employees in Sweden
Any person entitled to work in Sweden is also entitled to register with the Agency for Employment (Arbetsförmedlingen). This procedure can be done on-line, via the official site of the Employment Agency. Starting a business in Sweden as a foreigner is as easy as it can be with the support of our local law firm.
There are two different forms of employment contract:
- Permanent employment contract, where there is no end date for the employment period. A Swedish employer has the right to sign a probation period in connection with a permanent contract. A probationary period may be up to six months and may be discontinued at any time during the probationary period without having to give any particular reason for it. The employer needs to provide information at least two weeks in advance if they want to terminate the probation period. With the help of our specialists, you can set up a company in Sweden in just a few days.
- The temporary contract is the other type of employment and it lasts until the date that has been determined in advance.
Once you are registered as an employer you must report payroll taxes and tax deducted each month. When you do not pay salary for any single month of the year, you can notify the Tax Agency and you do not need to declare the remaining months.
The Swedish law does not provide a minimum salary, but the minimum income is negotiated and decided by collective agreements for each branch. If you are planning to open a company in Sweden, do not hesitate to ask for the business registration services offered by our lawyers.
We are at your service if you want to start a business in Sweden.
Sweden is a fruitful place to start a business, as its economy is characterized as a market economy with a comprehensive tax-funded sector and redistribution of income. Sweden is a developed country and one of the world's richest countries.
Starting a business in Sweden as a foreigner is not difficult and our lawyers can help you during the entire procedure.
Appealing investment sectors in Sweden
Main industries in Sweden include services, forestry, industry and iron mining. Other industries of great importance are agriculture with main agricultural products such as wheat, potatoes, sugar beets, cattle and fish, machinery, paper, wood products, iron, steel, road vehicles as well as electronics and telecommunications products, which represent the major export products for the Swedish economy. Our lawyers are at your disposal if you want to open a company in Sweden and need assistance.
The Swedish economy is very strongly oriented towards export and foreign trade, as exports in recent years have accounted for over 50% of GDP.
The Swedish capital of Stockholm, the Stockholm Stock Exchange and several banks headquarters represent the leading financial center of the Nordic Region.
Start a business in Sweden now and obtain all the benefits that come with having a company in this country.
Taxation in Sweden
Here are the main taxes to consider when opening a company in Sweden:
- the corporate tax levied at a rate of 20.6%;
- the value added tax imposed at a standard rate of 25%, however, lower rates are also available (12% and 6% for certain goods);
- branch offices will be taxed at the same 26% corporate tax rate as local companies;
- Sweden does not levy any withholding tax on dividends.
If you decide to open a company in Sweden, you can rely on our lawyers, so do not hesitate to contact us.