Our Global Network

Doing business in Sweden

How quickly can I set up a business?

1-30 days depending on complexity of structure and ability to establish banking contacts.

What is the minimum investment needed?

Limited company requires a minimum share capital of 25 000 SEK.

How can I raise finance?

Investor must contribute the entire capital.

What are the legal requirements for setting up my business?

Choose between forming a limited company or a branch office, registered by the Companies House (Bolagsverket).

What structure should I consider?
Limited company:
  • Can be 100% owned by foreign nationals/companies with limited liability.
  • At least one board member resident in EEA (European Economic Area).
  • One notifiable person must be resident in Sweden.
  • Annual report filed within six months of the financial year closing.
  • Register for company taxes, tax rate is 20,6% (2021). File income tax return within six months of the financial year closing.
  • Register for VAT, periodical VAT return.
Branch office:
  • Not a separate legal entity but part of the foreign parent company, no limited liability.
  • Branch office accounts within six months of the financial year closing.
  • Taxable in Sweden and must register for company taxes, tax rate is 20,6% (2021). File income tax return within six months of the financial year closing.
  • Register for VAT, periodical VAT return.
What advice can you give me in regards to payroll and taxation requirements?
  • Payroll, company pays for and administrates social security costs 31,42% on salaries, monthly return.
  • The company also deducts and administrates personal income taxes for employees, monthly return. Income tax is progressive, tax rates vary from 30%-55%.
  • Pension plan contributions are common, can depend on collective agreements. Costs related to pension costs has an additional tax (tax on pension/special employers contribution) of 24,26%.
  • 25 days paid vacation is standard but can depend on collective agreements.
Is there anything else that I should know?

Keep in mind that obtaining a bank account for the company can be a lengthy process due to strict rules for accepting new customers. Use parent company contacts when possible.

Our firms in Sweden
How can Kreston grow your business?
Select your business type:

Latest news

Skyscraper

How is audit reform affecting the profession?

As the Government implements new audit reforms and the market shifts away from the Big Four, what does the change mean for small audit clients?

How will Research and Development tax relief be affected by the upcoming UK Finance Bill

Advice for firms with clients who have UK operations

From 1 April 2023, companies will need to digitally pre-notify HMRC of any planned R&D claims, and within six months of the end of the period to which the claim relates.

Top rankings for our German member firm

Top rankings for our German member firm

Congratulations to our German member firm, Kreston Bansbach, whose consulting arm Bansbach Econum, has been ranked among the top consulting firms in Germany in the Handelsblatt 2022 Best Consultants list.