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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.

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