Trading partnership

1. How do I register a limited company?

You register a trading partnership with the Swedish Companies Registration Office and apply for F tax to the Swedish Tax Agency. You can do all these things at the same time in the e-services on verksamt.se if you have e-identity.

2. How many owners must the company have?

A trading partnership must always have at least two owners - natural persons (private individuals) or legal entities (companies or other organisations).

3. Is there any capital investment requirement?

No.

4. What is my personal liability as owner of a limited company?

Owners of a trading partnership have unlimited personal liability. They are also liable to each other (joint and several liability). Consequently, there is a risk that you will have to use your own private funds to pay the company's liabilities if the company or a partner is unable to pay.

5. How is the company taxed?

Each partner is taxed on his share of the total profit for the year.

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

The company has exclusive rights to the name in the county in which it is based. It is possible to protect the name in other counties by making additional registrations with the Swedish Companies Registration Office.

7. Is there a requirement to have an auditor?

No, not normally. There are exceptions for large companies, certain trading partnerships and limited partnerships of a certain size owned by legal entities and companies with special business, such as lawyer services.

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

In accordance with an agreement. In the absence of an agreement, the profit is distributed equally.

9. Who represents the company?

The partners/owners - either individually or jointly.

10. What happens if I fall ill?

As owner of a trading partnership, you receive sickness benefit from the Social Insurance Agency. Sickness benefit generating income is calculated on each partner's net income.

You may also reduce your personal contribution by choosing to have 14, 30, 60 or 90 waiting days. If you do not make an active choice, you will be given one waiting day and pay a full personal contribution.

11. Can the partnership's owners sign an agreement regulating obligations etc?

Even if all the partners are in verbal agreement, a written partnership agreement should always be drawn up. This is an agreement between the partners of a company. This is a common type of agreement in a partnership, as there are many situations which are not regulated under the Swedish Partnership Act. The partners' rights and obligations should be clearly defined in the partnership agreement. It is a good idea to engage the help of an independent advisor in drawing up the agreement.