Doing business in Sweden
- How quickly can I set up a business?
- What is the minimum investment needed?
- How can I raise finance?
- What are the legal requirements for setting up my business?
- What structure should I consider?
- What advice can you give me in regards to payroll and taxation requirements?
- Is there anything else that I should know?
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.
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