There are a number of different legal structures for businesses in Sweden. Here’s a brief overview of the types of businesses in Sweden:

Starting a new Business in Sweden

You can register a Swedish business as a sole trader resident in Sweden (self-employed) or register a new Swedish legal person for taxation.

You can start a new business in Sweden as a:

• Sole trader(Swedish: enskild näringsidkare), or
• through a limited liability company (Swedish: aktiebolag),
• a trading partnership (Swedish: handelsbolag),
• a limited partnership (Swedish: kommanditbolag), or
• an economic association (Swedish: ekonomisk förening). You can register your new business with the Swedish Companies Registration Office online using verksamt.se.

Sole trader

As a sole trader (self-employed) you need to register your business with the Swedish Tax Agency. You may also, but do not normally, need to register with the Swedish Companies Registration Office. Company registration

Tax registration

When starting up as a sole trader, you need to apply for F-tax and VAT registration and, where relevant, register as an employer with the Swedish Tax Agency (Skatteverket). You can use our online service to apply for this permit. Your business will be identified by your personal ID number.

Register F-tax and VAT online here.

Register a name for your business (optional)

As a sole trader you can register a name for your business with the Swedish Companies Registration Office (Bolagsverket). This is not a requirement, but is a good idea, as it gives you exclusive rights to the name in the county where you will be operating. You can use our online service to apply for this permit.

Register sole trader online here.

Other permits or applications

There might be other permits or registrations that you need to consider when starting your business.

Find permits here.

Limited company

A limited company can be started by one or more natural persons or legal entities. When starting a limited company, you must have at least SEK 50,000 in share capital. You need to register your business with the Swedish Companies Registration Office and the Swedish Tax Agency.

Company registration

Register with the Swedish Companies Registration office

A limited company must be registered with the Swedish Companies Registration Office (Bolagsverket). A limited company only becomes a legal person when it has been registered with the Swedish Companies Registration Office. Registration provides nationwide protection of the company name.

Register limited company online here.

Tax and VAT registration

The company must then register with the Swedish Tax Agency (Skatteverket). The company needs to apply for F-tax and VAT registration and, if relevant, register as an employer.

Register F-tax and VAT here.

Other permits

There might be other permits or registrations that you need to consider when starting your business.

Find permits here.

Trading partnership

A trading partnership is an alternative if at least two natural persons or legal entities wish to start a business together. You need to register a trading partnership with the Swedish Companies Registration Office and the Swedish Tax Agency.

Company registration

Register with the Swedish Companies Registration Office

A partnership must always be registered with the Swedish Companies Registration Office (Bolagsverket). Following registration, the company is allocated a corporate identity number and receives protection for its business name. The company has exclusive rights to the name in the county in which it is based. It is possible to protect the name in other counties by making additional registrations with the Swedish Companies Registration Office.

Register trading partnership online here.

Apply for F-tax and VAT registration

The company must then register with the Swedish Tax Agency (Skatteverket). The company need to apply for F-tax and VAT registration and, if relevant, register as an employer.

As a partner you must complete a preliminary VAT and PAYE return (self assessment). Based on this self-tax assessment, the Swedish Tax Agency decides on your preliminary A tax (special A tax).

Register F-tax and VAT online here.

Other permits

There might be other permits or registrations that you need to consider when starting your business.

Find permits here.

Limited partnership

A limited partnership is an alternative if at least two natural persons or legal entities wish to start a business together. You need to register a trading partnership with the Swedish Companies Registration Office and the Swedish Tax Agency.

Company registration

Register with the Swedish Companies Registration Office

A partnership must always be registered with the Swedish Companies Registration Office (Bolagsverket). Following registration, the company is allocated a corporate identity number and receives protection for its business name. The company has exclusive rights to the name in the county in which it is based. It is possible to protect the name in other counties by making additional registrations with the Swedish Companies Registration Office.

Register trading partnership online here.

Apply for F-tax and VAT registration

The company must then register with the Swedish Tax Agency (Skatteverket). The company need to apply for F-tax and VAT registration and, if relevant, register as an employer.

As a partner you must complete a preliminary VAT and PAYE return (self assessment). Based on this self-tax assessment, the Swedish Tax Agency decides on your preliminary A tax (special A tax).

Register F-tax and VAT online here.

Other permits

There might be other permits or registrations that you need to consider when starting your business.

In our service Find permits you can find permits by category or in our list from A to Ö. You can also find information on permits and registrations which are specific for a certain profession.

Find permits here.

Economic Associations

No starting capital is required for an economic association. You need to register the economic association with the Swedish Companies Registration Office (Bolagsverket). You also need to register your business with the Swedish Tax Agency (Skatteverket).

Company registration

Register with the Swedish Companies Registration Office

Registration has to take place no later than six months after the decision was taken to form the association. Following registration, the association becomes a legal person and is provided with nationwide protection for its name. You can use our online service to apply for this permit.

Register an economic association here.

Tax registration

Once the association is registered with the Swedish Companies Registration Office and has been allocated a corporate identity number, you can register the association with the Swedish Tax Agency (Skatteverket). You need to apply for F-tax and VAT registration as well as register as an employer (if you are going to have employes).

You can use the Swedish e-services to fill out the form when applying for F-tax.

Apply for f-tax here.

Read more about f-tax here.

Other permits

There might be other permits or registrations that you need to consider when starting your business.

Find permits here.

Approval for Sweden F-Tax

Most businesses active in Sweden apply for approval for Swedish F-tax. When your business is approved for F-tax, your customers do not have to deduct taxes on payments made to you for work performed in Sweden. If you are self-employed, a sole trader, more information on F-tax can be found here

Tax registration

Once you have registered your business with the Swedish Companies Registration Office (Bolagsverket), you need to register with the Swedish Tax Agency for taxation purposes.

If you have a Swedish electronic ID, it is possible to register for both purposes through the verksamt.se website.

If not, you can register directly with the Swedish Tax Agency by using the paper forms (SKV 4620 in Swedish).

Depending on the nature of your business, you may need to register for VAT (Value added tax, Swedish: Mervärdesskatt, Moms) and/or as an employer for PAYE.

If your business is liable for VAT, you are required to register for VAT. If you have employees (including yourself if you are working for a limited liability company) you need to register as an employer for Pay As You Earn (PAYE).

Establishing a Foreign Business in Sweden

A foreign business in Sweden must be registered for taxation, including registering a Swedish branch or subsidiary of a foreign company. Registration is required if the company is liable for any Swedish taxes; including income tax or VAT.

In Sweden, business operations may be conducted as a sole trader (a natural person), or through a corporation (a legal person).

Whether or not a foreign enterprise is liable to pay income tax in Sweden is determined by whether the company has a permanent establishment in Sweden or not. If the enterprise has a permanent establishment in Sweden it will be taxed for business income.

A foreign entrepreneur conducting business in Sweden, either as a natural or a legal person, may become liable to VAT, employer’s contributions and/or income tax. The company should then apply for registration at the Swedish Tax Agency, and may apply for approval for Swedish F-tax (signifying that you are responsible for paying your own tax and contributions).

Sole traders who have a Swedish ID number, as well as corporations that have a legal signee in possession of such a number, may submit an electronic application on the verksamt.se website. The legal signee of a corporation must be authorized to sign on behalf of the corporation without co-signatories.

Opening a Branch

A foreign company wishing to operate in Sweden without registering a subsidiary may open a branch. A branch is a foreign company’s local office in Sweden with its own administration and corporate identity number.

Register with the Swedish Companies Registration Office

A branch is an independent entity which conducts business transactions in its own name, acting on behalf of the company. The branch must have a managing director. The managing director represents the branch and must register it with the Swedish Companies Registration Office (Bolagsverket) prior to the commencement of business operations.

You register the brand with the Swedish Companies Registration Office.

Read more about branches, here.

Corporate identity number

When the branch has been registered, it is allocated a ten-digit corporate identity number. This number is a kind of identifier for the branch and is used in its contacts with authorities and other parties.

Reporting to the Swedish Companies Registration Office

The rules regarding the preparation and submission of financial statements can be summarised as follows:

Branches of companies in the EEA which are comparable with limited companies:

• The accounting is concluded with an annual financial statement (årsbokslut).
• The annual report for the foreign company must be sent to the Swedish Companies Registration Office.

Branches of companies in the EEA which are not comparable to limited companies:

• The accounting is concluded with an annual report (årsredovisning).
• The annual report for the branch and the foreign company must be sent to the Swedish Companies Registration Office if the annual report is a public document in the homeland of the foreign company.

The financial statements must be prepared in Swedish or translated into Swedish.

Tax

A foreign company starting a branch in Sweden must pay income tax on its business operations.

Typical features of branches:

• A branch is not a separate legal person, but part of the foreign company.
• A branch is subject to Swedish law and Swedish regulatory decisions with regard to legal relationships that arise in connection with business activities in Sweden.
• A branch does not have its own share capital and its assets and liabilities are part of the company’s total assets and liabilities.
• The branch accounts must be kept separate from those of the foreign company. This is partly in order to allow a separate annual report to be prepared for the branch.
• The branch’s accounts and the managing directors’ administration must be reviewed by an authorised public accountant.

The Services Directive

The Services Directive defines the rules and conditions for entrepreneurs wishing to establish a business or perform temporary services on the EU internal market. Verksamt.se is the operative place for the Swedish Point of Single Contact.

Establishing a Non-Profit

A non-profit association has a non-profit motive or operates non-profit-making activities. A non-profit association may not have as its motive furthering the economic interests of its members by operating commercial activities. A non-profit association may operate a business.

A non-profit association is always open to new members who share the aims of the association. These new members do not need to make any capital contribution. On the other hand, payment of a membership fee is commonplace.

A non-profit association must be formed by at least three persons determining its aims and name. If you want to register an association, you must you write its Articles of Association and appoint a Board. You must also register your association with the Swedish Tax Agency.

For EU laws, please refer to the relevant Europe section, here.

Sources

• Registering a Business
• Get Started - Sole Trader
• Get Started - Limited Company
• Get Started - Trade or Limited Partnership
• Get Started - Economic Association
• Registering a Business
• Opening a Branch
• Non-profit Association