Business entities in Sweden

Business entities in Sweden

Legal requirements to setup Sweden business entity Healy Consultants will be pleased to assist our Client with Sweden business setup. There are several ways of running a business in Sweden, the most common being formation of an LLC. Alternatively, our corporate Clients can also register a branch in Sweden or a representative office.

The Swedish Limited Liability Company

  • This is the most commonly incorporated business entity in Sweden. A Swedish LLC must appoint at least 2 directors and 1 shareholder. Although the shareholders can be of any nationality, at least 1 director must be an EEA resident;
  • The minimum initial share capital required to setup a Swedish LLC will be €5,620.

The Swedish Public Limited Company

  • This business entity is recommended when our Clients wish to register the company on the national stock exchange. Such a company requires minimum start-up capital of €56,200 for incorporation. Furthermore, 3 directors and 1 shareholder must be appointed at Sweden company setup. While the shareholders can be of any nationality, at least half the directors must be EEA residents;
  • To give your company a marketing edge, Healy Consultants recommends our Clients establish a Swedish PLC instead of an LLC. In Sweden, it is not necessary for a PLC to list on the stock exchange.

Branch Office

  • The Swedish Companies act stipulates that a branch office may be 100% foreign owned. A branch office in Sweden can conduct trade within the scope set by the parent company. This business entity is allowed to invoice Swedish customers, sign local sales contracts and receive income from customers;
  • A Swedish branch office must appoint a resident company secretary.

Representative office

  • If a foreign company does not intend to carry on business in Sweden, it may seek to establish a representative office. Although a Swedish representative office is 100% foreign-owned and controlled, it is not permitted to make direct sales within the country. Such an office will only engage in activities such as i) promoting the business of the parent company and ii) market research;
  • A representative office is mandated by law, to appoint a resident company secretary.

Table of comparison between different Sweden entities

Summary at a GlanceLLCPLCBranchRep office
How long to set the company up?2 weeks4 weeks3 weeks3 weeks
How long to open company bank account?4 weeks4 weeks4 weeks4 weeks
Bank signatory must travel?YesYesYesYes
Issued share capital required?€5,620€56,20000
Is doing business in Sweden permitted?YesYesYesNo
Allowed to sign sales contracts with Sweden Clients?YesYesYesNo
Allowed to invoice Sweden Clients?YesYesYesNo
Corporate tax payable in Sweden?22%22%22%0%
Corporate bank account?NordeaForex Bank SwedbankNordea
Can rent office in Sweden?YesYesYesYes
Tenancy agreement required before incorporation?NoNoNoYes
Allowed to import raw materials?YesNoYesNo
Allowed to export goods?YesYesYesNo
Can the entity hire expatriate staff in Sweden?YesYesYesYes
Do you visit Sweden for company incorporation?NoNoNoNo
Resident director required?YesYesNoNo
Resident shareholder required?NoNoNoNo
Minimum number of directors?2300
Minimum number of shareholders?1100
Sweden resident company secretary?NoNoYesYes
Individual shareholders allowed?YesYesNoNo
Corporate shareholders allowed?YesYesYesYes
Corporate director(s) allowed?NoNoNoNo
Public register of shareholders and directors?NoNoNoNo
Sweden employment visa fees?€3,950€3,950€3,950€3,950
How long to get work permit approved?3 months3 months3 months3 months
Statutory audit required?YesYesYesNo
Annual tax return to be submitted?YesYesYesYes
Access to Sweden double tax treaties?YesYesYesYes
Total business setup costs in Year 1€12,113€14,265€16,450€14,500
Subsequent annual costs (incl. accounting & tax)€3,400€3,400€3,400€3,400
Draft invoicedraft invoice for Swedendraft invoice for Swedendraft invoice for Swedendraft invoice for Sweden

Contact us

For additional information on our business setup services in Sweden, please email us at email@healyconsultants.com. Alternatively please contact our in-house country expert, Ms. Zhang Yi, directly:
client relationship officer - Zhang Yi