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.