Business entities in Sweden in 2023

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?	20.6%	20.6%	20.6%	20.6%
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

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