Sweden is one of the world's most economically and politically stable countries. Sweden is, however, impacted by the global financial crisis and economic downturn, and the Economist Intelligence Unit has lowered its economic growth forecast for Sweden to 0.7% in 2008 and -0.6% in 2009. The following information will help you determine whether Sweden company formation is the optimum corporate structure to fulfill your international business objectives: |
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| Advantages of Sweden company formation | |||||
| 1. | Because of the double tax treaties Sweden has signed with other countries, a Swedish company enjoys exemption from withholding tax on dividend payments if the following conditions are met: i) the shares are held as business assets ii) the recipient owns at least 25% of the shares of the Swedish company. No withholding tax is levied on payments of royalties made by a Swedish company to foreign companies. Consequently, a Swedish company is a popular holding company. |
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| 2. | The World Bank positively ranks Sweden 18th in its 2010 Doing Business report. Sweden scores highly in i) the ease of setting up a business ii) ease of trading across borders and iii) dealing with licenses. Consequently, Sweden company formation is simple for international entrepreneurs. |
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| 3. | International entrepreneurs find Sweden company formation projects an excellent image to their clients, suppliers, bankers and even venture capitalists. Sweden has been a member of the European Union (EU) since 1995, and is positively perceived as one of the world's least corrupt countries, ranking 3rd in the 2009 Corruption Perceptions Index by Transparency International, a global measure of corruption amongst public officials and politicians. |
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| 4. | Switzerland-based IMD positively ranks Sweden as the world’s 6th most competitive economy in its 2010 World Competitiveness Yearbook. The ranking takes into account factors including economic performance, government efficiency, business efficiency and infrastructure. |
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| 5. | A Swedish company can be 100% foreign owned, and only one director and shareholder is required to fulfill statutory company incorporation requirements. The shareholder and director can be the same person, of any nationality and need not be resident in Sweden. However, the appointed director must be a resident within the European Economic Area. |
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| 6. | Entrepreneurs choosing Sweden company formation access a highly skilled talent pool. Approximately one third of Sweden's workforce are degree, diploma or higher qualification holders. |
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| 7. | Healy Consultants can open a corporate bank account to support Sweden company formation. Healy Consultants works with internationally recognised banks such as HSBC, Standard Chartered and Citibank to provide corporate bank account services. |
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Disadvantages of Sweden company formation |
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| 1. | Sweden company formation is expensive. In addition to high government fees, the minimum capital of 100,000 Swedish Kroner (US$12,600) must be paid up in full during incorporation. |
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| 2. | A Swedish company is subject to a corporation tax of 28% on worldwide income. Following Sweden company formation, it is necessary to submit an annual tax return to the Swedish Tax Agency. |
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| 3. | According to the Swedish Statistics Bureau, Sweden is expected to face labour shortages up to 2015, with 35% of the active workforce set to retire then. |
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Other Information |
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Refer to the following links to read more information on Sweden company formation: |
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Contact Us |
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For more information on Sweden company formation, contact email@healyconsultants.com or telephone us at (+65) 6735 0120. |
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