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Sweden balanced and stable economy, neutral history has always been a welcoming land for foreign investments and trade and a good opportunity for new market expansion. Sweden has also one of the best averaged quality of life, financed by high tax rates.

What are the main types of Company Formation Sweden?

The five most popular forms of corporate structure in Sweden are as follows:

  • private limited company
  • public limited company
  • branch office of a foreign company
  • partnership
  • sole trader

Main features of a Swedish private limited company

  • suitable for even the smallest company
  • board may consist of just one member, plus a deputy
  • minimum share capital is SEK 50,000 (approximately EUR 5,500)
  • the board is liable for the company debts and "the Company can enter into agreements and is liable for its debts"

Recruitment environment

Swedish people is one of the highest skilled workforce in Europe, crucial opportunity for foreign investors. Unemployment has been rising in recent years and there should be no shortage of applicants for jobs.

Regulatory environment

There are few regulations governing foreign ownership or business operations and profits can be freely remitted abroad. Labour law and contracts are highly regulated.

Financial incentives

No specific incentives are known for foreign companies in Sweden but particularly low interest loans can be obtained in case of investments in developing areas. There are also tax advantages for foreign companies that need to recruit specialist personnel from abroad, such as technical experts and researchers.

Filing requirements

All companies are required to file annual financial statements with the Bolagsverket, these must be filed within seven months of the end of the accounting period and all statements must be recorded in the Swedish language and drawn up in Euros or Swedish Krona. An auditor is required if company employs more than three individuals.

Please contact us and we will be pleased to discuss matters in greater detail.