Register a Company in Sweden
About Sweden
The Kingdom of Sweden (Konungariket Sverige) is a highly developed high-income Scandinavian country located in Northern Europe. Sweden’s export-oriented economy is based on a contribution from the services, industry and agricultural sectors. In terms of Gross Domestic Product (GDP) ratings, Sweden ranks 39th on Purchasing Power Parity Index with $684.4 Billion and 25th on Nominal Index with $603.9 Billion. Sweden has one of the fewest legal barriers in registering a business for both its citizens and foreigners.
Steps To Register a Company in Sweden
The business registration process in Sweden is comparatively easy and straightforward and this can be completed within a short timeframe provided all documents are available. Below is a step-by-step breakdown of the business registration process in Sweden:
Business Structure
The first step to registering a business in Sweden is the identification and selection of the desired business structure. The available business structures include Sole Proprietorships (Enkelt Bolag), Partnerships (Partnerskap), Joint-Stock/Limited Companies (Aktiebolag) and Limited Partnerships (Begransat Partnerskap). However, the most commonly registered businesses in Sweden are usually Limited Liability Companies (Aktiebolag) & Sole Proprietorships (Enkelt Bolag). This is done on the website of the Swedish Government Services for Businesses
Companies Office Registration
After determining the type of business structure, the next step is to proceed to the business registration with the Companies Office (Bolagsverket). During this process, the information to be provided include the type of business, the purpose of the business, the name of the business and the name of the directors. This registration can be done physically in the Companies Registration office or online on their website
Tax Registration
The next step in the registration process is the tax registration done with the Swedish Tax Agency (Skatteverket). This registration empowers the business to pay taxes to the Swedish Government. The completion of this process ends with the business being issued with a Swedish Business Identification Number (Organsationsnummer) and this number must always be used for all tax and social security correspondences. This registration is done online
Value Added Tax (VAT) Registration
This registration, done with the Swedish Tax Agency, is compulsory for all businesses that intend to go into trading within the Swedish territory and must be done within 30 days after registering the business. This registration is done online
Business Identification
Upon completion of the business registration process with the Companies Office, a business identification number is issued and this is used in all official correspondence with the government, other businesses and customers.
Bank Account
Upon receipt of the business identification number, a Swedish Corporate Bank account must be opened for the business. This can be done online or at the physical branches of the chosen bank. Some of the banks include Nordea Bank, SEB Bank, Svenska Handelsbanken AB, Swedbank, Forex Bank AB, Avanza Bank, etc.
Social Security Registration
To confirm the legality of the business, the business must register for a Social Security Contributions Number (Personnummer) with the Swedish Social Insurance Agency (Forsakringskassan). This number is then used for all social security payments and contributions and the registration is done online
Licenses & Permits
In order to commence operations, the business must apply for specific licenses and permits. These are applicable to businesses either within a particular sector or within a particular municipality and the information can usually be gotten from the physical office of the local municipality. Sweden currently has about 290 municipalities and some of them are Ale, Alingsas, Dorotea, Eda, Eskilstuna, Gotland, Jonkoping, etc
Employment Insurance
For businesses that intend to have employees, it is imperative to register for an Employment Insurance Number with the Swedish Labour Market Insurance Board (Arbetsformedlingen). This is done online
Swedish Business Register
The business registration process ends with the inclusion of the business registration into the Swedish Business Register in the Swedish Chamber of Commerce (Svensk Handel) and the issuance of the Chamber of Commerce Number (Handelsregistreringsnummer). This is done online
Documents Needed To Register a Business in Sweden
The following are the documents needed to complete a business registration in Sweden:
- Proof of Identity (Passport Data page, Driver’s License)
- Proof of Residential Address (Electricity Bill, Financial Statement)
- Business Plan
- List of Founding Members
- Articles of Association
Frequently Asked Questions
The business registration process entails choosing a name, registering with the Companies Registration Office, obtaining a business ID, tax ID, and social security ID and ending with inclusion in the Business register.
The documents include a business registration application form, copy of valid identification, proof of address, business plan, members and articles of association (where applicable).
The business registration costs range between 500 SEK to 1000 SEk and this is dependent on the type of business being registered.
Other costs include notary fees, legal fees, bank account opening fees and other administrative costs based on local municipality laws.
The entire registration timeframe cuts across one to three months and this is dependent on the business structure and other applicable permits/licenses as dictated by local municipality laws.
Yes, foreigners can register a business in Sweden provided they have been issued a Swedish residence permit.
