Business entities in Sweden in 2023
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Sweden shelf companies: Benefits? | Documents required? | How do they work?
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.
The Swedish representative office
- Swedish laws do not distinguish representative offices from branches of foreign companies. While it is possible to register such entity, it will be consequently treated for corporate and tax purposes exactly as a branch;
- A representative office is required by law to appoint a resident country representative.
Table of comparison between different Sweden entities
| Summary at a Glance | LLC | PLC | Branch | Rep office |
|---|---|---|---|---|
| How long to set the company up? | 2 weeks | 4 weeks | 3 weeks | 3 weeks |
| How long to open company bank account? | 4 weeks | 4 weeks | 4 weeks | 4 weeks |
| Bank signatory must travel? | Yes | Yes | Yes | Yes |
| Issued share capital required? | €5,620 | €56,200 | 0 | 0 |
| Is doing business in Sweden permitted? | Yes | Yes | Yes | Yes |
| Allowed to sign sales contracts with Sweden Clients? | Yes | Yes | Yes | Yes |
| Allowed to invoice Sweden Clients? | Yes | Yes | Yes | Yes |
| Corporate tax payable in Sweden? | 22% | 22% | 22% | 22% |
| Corporate bank account? | Nordea | Forex Bank | Swedbank | Swedbank |
| Can rent office in Sweden? | Yes | Yes | Yes | Yes |
| Tenancy agreement required before incorporation? | No | No | No | No |
| Allowed to import raw materials? | Yes | No | Yes | Yes |
| Allowed to export goods? | Yes | Yes | Yes | Yes |
| Can the entity hire expatriate staff in Sweden? | Yes | Yes | Yes | Yes |
| Do you visit Sweden for company incorporation? | No | No | No | No |
| Resident director required? | Yes | Yes | No | No |
| Resident shareholder required? | No | No | No | No |
| Minimum number of directors? | 2 | 3 | 0 | 0 |
| Minimum number of shareholders? | 1 | 1 | 0 | 0 |
| Sweden resident company secretary? | No | No | Yes | Yes |
| Individual shareholders allowed? | Yes | Yes | No | No |
| Corporate shareholders allowed? | Yes | Yes | Yes | Yes |
| Corporate director(s) allowed? | No | No | No | No |
| Public register of shareholders and directors? | No | No | No | No |
| Sweden employment visa fees? | €3,950 | €3,950 | €3,950 | €3,950 |
| How long to get work permit approved? | 3 months | 3 months | 3 months | 3 months |
| Statutory audit required? | Yes | Yes | Yes | Yes |
| Annual tax return to be submitted? | Yes | Yes | Yes | Yes |
| Access to Sweden double tax treaties? | Yes | Yes | Yes | Yes |
| Total business setup costs in Year 1 | €14,122 | €17,172 | €17,780 | €18,450 |
| Subsequent annual costs (incl. accounting & tax) | €4,400 | €4,400 | €7,930 | €3,400 |
| Draft invoice | View invoice PDF | View invoice PDF | View invoice PDF | View invoice PDF |
