Starting a business

1. I'm thinking of starting a business. Where do I begin?

A good way of planning a business start-up is to make a business plan. The business plan is a structured presentation of your thoughts on the product/service, market, competitors, strategies, business concept, income, costs and budget. A business plan will show you whether your concept can work and how to proceed in the next stage.

2. Where do I go for advice?

Start by contacting your municipal trade and industry office to find out what help is available as you set up your business. As initiatives vary from municipality to municipality, a good way of beginning is to obtain an overview of what is available in your own particular area.

Other organisations which offer free advice include Jobs and Society (Nyföretagarcentrum), ALMI Företagspartner, IFS (advice in different languages) and Coompanion (for economic associations).

3. Are there any good templates for writing a budget?

ALMI Företagspartner's website has some useful templates for your profit and cash flow budget, sales budget, capital requirement etc. Follow the link below to access the documents.

4. Is there a limit to how much I can earn from hobby activity?

There are no restrictions on how much you can earn from hobby activity. The difference between hobby activity and business activity is that hobby activity is not operating for gain. It is something you do in your leisure time and is not your main livelihood.

Hobby activity is normally taxed as earned income under the category employment income in the tax return. In principle, all income is taxable and all expenses are deductible. If your annual turnover exceeds SEK 30,000, you will be liable for VAT.

If you pursue business activity for gain, you must apply for F tax and declare the profit under business income.

5. Can I start up a business and receive compensation from unemployment insurance at the same time?

When you start up a business, you are no longer entitled to receive compensation from unemployment insurance. You will only be considered unemployed and qualify for this type of compensation if you cease trading. It is possible to suspend trading at some point in the company's lifetime, in which case you will qualify for compensation from unemployment insurance.

6. Is it possible to have a business and be employed at the same time?

Yes it is possible. However, your business may not compete with your employer's business activities. It is therefore a good idea to inform your employer that you have your own business.

7. Can I have leave of absence in order to start a business?

If you have been with your employer for the last six consecutive months or at least 12 months during the last two years, you are entitled to leave of absence to start a company, provided your absence does not inconvenience the employer. The period of leave may not exceed six months.

8. Do I need to open a business account if I am starting up as a sole trader or can I use my personal account?

It is worth opening a separate bank account for your business transactions, in order to make a clear distinction between your personal and business finances. This will facilitate your own book-keeping and reporting to the Swedish Tax Agency.

9. Do I need special insurance or will my home insurance cover me?

Home insurance is not valid for business activity. You should therefore consider whether you need to take out additional insurance cover when you start your business. The types of insurance you need may depend on factors such as the sector in which you will be operating. Many insurance companies offer a package of insurance policies which include the most common types of cover. Check the different insurance companies' terms & conditions and prices.

10. What should I bear in mind when signing a rental contract for premises?

When you have found premises you would like to rent, read the rental contract carefully. You need to know what the rent includes and the period of notice. Bear in mind that the premises must meet requirements imposed by the authorities. These vary according to the type of business. A building permit is normally required for a change in use of the premises. You can find out more about requirements for different types of premises and building permits from your local authority.

Also contact your insurance company and find out what requirements they have concerning the premises before they will insure them.