Economic association

1. How do I register an economic association?

You register an economic association with the Swedish Companies Registration Office. You must also apply for F tax with the Swedish Tax Agency. You can use the e-services on verksamt.se.

2. How many owners must the company have?

An economic association must have at least 3 members - natural persons (private individuals) or legal entities (companies or other organisations).

3. Is there any capital investment requirement?

Yes. There is a minimum capital investment of SEK 1 or investment in the form of work.

4. What is my personal liability as owner of an economic association?

You do not have any personal liability; you only risk the capital you invested. If you are also a board member or managing director, you may have some personal liability for the association's unpaid taxes and contributions.

5. How is the economic association taxed?

The association pays tax on its profit for the year. The members are taxed on the salary and any dividend they are paid.

6. How is the association's name protected when registered?

The economic association has exclusive rights to the name in Sweden.

7. Is there a requirement to have an auditor?

Yes. At least one auditor. This may, for example, be someone in the economic association with a good knowledge of economy, although the auditor may also be a professional auditor. In very large economic associations, the auditor must be authorised. Further information is available from the Swedish Companies Registration Office.

8. How is the company's profit/loss distributed?

Profit may be distributed to members in the form of bonuses. The board makes a proposal regarding appropriation of the profit and the members decide on this at the annual general meeting.

9. Who represents the association and signs agreements etc?

The board always represents the association. If there is a managing director, he represents the association in matters concerning the day-to-day operation. For practical reasons, the board may also appoint special signatories who are entitled to represent the association. These may, but do not have to be, members of the board.

10. What happens if I fall ill?

As a working owner of an economic association, you are employed. The association must pay your sick pay for the first 14 days. Sickness benefit generating income is calculated on the basis of the salary you have drawn.