General information
22%Tax rate- 4 weeksTime of establishment of the company
- 50 000 SEKMinimum capital
Until 2008, the Swedish economy was experiencing steady economic growth supported by an increase in domestic demand and strong exports. The country adopted a reform programme to improve employment, reduce welfare dependency and rationalise the role of the state in the economy.
Types of companies
Swedish law provides for the following types of business activities of foreign entities:
- Limited liability company (SRL)
- Public limited company (AB)
- Single-member enterprise (Enskild näringsidkare)
- Limited partnership
- Branch and Representative Office
The most frequently registered company by foreign investors is a limited liability company. (SRL)
Company registration procedure
Registration of the company:
- The first step to the registration of the company is to draw up the articles of association and to draw up the company’s statute in the form of a notary deed.
- Then you have to pay the capital into a bank account and get a confirmation of payment.
- The next step is to register the company but before this happens, the company must appoint an accountant.
- Registration is done at the Bolagsverket, where the company receives a registration number.
- You will then need to register with the Tax Office (Skatteverket).
- The last step is to obtain all the necessary permits and licenses that are appropriate for your business.
Shareholders:
There are no restrictions on the number of shareholders, however, a minimum of one shareholder is required to establish a company. Foreign shareholders are allowed.
Management Board:
At least one director and a deputy director must be on the management board. At least half of the directors and their deputies must be residents of the European Economic Area.
Supervision:
Companies with more than 25 employees must establish an economic committee comprising three representatives of the board of directors and two representatives of the employees. If the committee does not meet employees’ requirements for information and control, they may appoint an ’employee consultant’. Both the consultant and the committee have insight into the company’s accounts and affairs and can oblige the management to initiate investigations and make forecasts. However, this information may only be passed on to employee representatives.
Registered office:
The company must have a registration address, it is suggested that it should be the address of a stationary office.
Time to set up a company:
The time to set up a company is about 4 weeks.
Capital:
The minimum capital is SEK 50000. Full payment to the account is required during the registration procedure. The capital may also be in kind, but in-kind contributions must correspond to the company’s activities and must be valued by a certified public accountant.
Taxes and finances
The Swedish tax system has many direct and indirect taxes and contributions. Taxes are payable at the municipal level and at national level, local authorities set their own tax rates in their municipalities. Under EU law, the free movement of capital is the rule. Foreign investors are offered a wide range of financial and fiscal incentives. In particular, reductions of social security costs for employers established in northern Sweden, subsidized job creation or staff training, tax incentives for foreign executives or R&D and free-trade area expenses.
Accounting
In accordance with standard practices in the EU, companies must register and submit annual accounts to regulatory authorities. Annual audits are mandatory.
| Tax rate | • Income tax: 21.4% • Property tax (companies): from 0.2 to 2.2% according to the value• Tax on capital gains: 21.4% • Tax on interest and royalties: 0% • Tax on dividends: 30% • VAT: 25% No wealth or business taxes |
| Minimum capital | 50,000 SEK (5000€), 500,000 SEK (52,125 €) if a public offering, fully paid at creation |
| Shareholders | Minimum of one associate |
| Foreign shareholders | Yes The client must have an authorized representative if he is not present in Sweden. |
| Directors | A minimum of one director and one deputy director on the Board of directors |
| Foreign holding | Yes |
| Legal obligations | Annual mandatory audit of accounts |
| Deadline | 4 weeks from the receipt of all documents |
| Headquarters | Business address, telephone transfer, fax, and mail Possibility to have a physical office (prices vary depending on demand) |
| Accounting | Mandatory annual financial report, result account, schedule, and management reporting, based on an estimated number of monthly bills and a forecast of annual turnover. |
Other information
Our clients register Swedish companies mainly with a view to doing business in Sweden. A frequent motive for our clients is the willingness to take advantage of the local pension system, which usually requires an actual move to Sweden.
