Types of business, general

1. How do I register my company?

When you start up a company, you must register the legal form of the business with the Swedish Companies Registration Office. This applies to all legals forms of business, apart from sole trader, which you register with the Swedish Companies Registration Office if you want to protect the company name. Whatever the legal form of your business, you must always submit a a Tax and Payroll Application to the Swedish Tax Agency. This includes an application for F tax and registration for activities which are subject to VAT.

The easiest way of registering your company is by using the e-services on verksamt.se. For this you need an e-identity.

2. What does it cost to register a company?

The Swedish Companies Registration Office charges a registration fee which varies according to the legal form of the business you are registering. It is less expensive to use the e-service on verksamt.se than to register by filling in a form.

3. Does a sole trader have to register with the Swedish Companies Registration Office?

A sole trader is not normally required to register with the Swedish Companies Registration Office. However, companies which fulfil one or more of the following criteria are required to register (if the company is not included in the Services Directive).

• The average number of employees in the company for each of the two most recent financial years exceeds 50.
• The company's total assets for each of the two most recent financial years exceed SEK 40 million.
• The company's net sales for each of the two most recent financial years exceed SEK 80 million.

The Services Directive defines the rules and conditions for entrepreneurs wishing to establish a business or perform temporary services on the EU internal market. Verksamt.se is the operative place for the Swedish Point of Single Contact.

4. How do I protect my company name?

By registering your company with the Swedish Companies Registration Office, you also obtain protection of your name. The extent of the protection varies depending on the legal form of your business.

• Sole trader: protection in the county of registration.
• Trading or limited partnership: protection in the county of registration.
• Limited company: protection throughout Sweden.
• Economic Association: protection throughout Sweden

To protect a trademark or logo, contact the Swedish Patent and Registration Office.

5. Can I check whether a company name is available or taken when I apply?

You can search for the name in the Swedish Companies Registration Office's Trade and Industry Register and in the e-service on verksamt.se. This contains all the registered names. Even if the name you want is not already registered, this doesn't automatically mean that it will be approved. Be prepared to offer several alternatives when you send your application to the Swedish Companies Registration Office.

6. There are a few of us who want to start a company together. What are our options?

If two or more people want to start a business, the following choices are available:

• trading partnership
• limited partnership
• limited company

If there are three or more of you, you can also start an economic association. Follow the link below to read about the different types of company. Compare them and see which suits your business best.

7. Is it possible to change the legal form of the business after a while - to move from being a sole trader to being a limited company, for example?

It is possible to change the legal form of your business. You can do so by registering a new legal form of business, closing your old company and transferring all or part of your business to the new company. In other words, you don't actually "change" to another legal form of business , but start from scratch and re-register. This means it is possible to start as a trading partnership and later register as a limited company and continue your business operations in this company.

Tax rules for changing the legal form of your business and the liquidation procedure for the old company may be lengthy and complicated. It is therefore recommended that you contact an auditor or lawyer with knowledge in this area.

8. Do I have to have an auditor in my company?

If you are a sole trader or a trading/limited partnership, there is normally no requirement to have an auditor. A limited company must have at least 1 authorised or approved public accountant. But small companies may choose not to have an auditor. An economic association must have an auditor, but the auditor does not have to be an authorised or approved public accountant unless the association is very large.

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.

9. Can my company engage in several different business activities?

Yes. You specify the business activities when you submit your application for F tax to the Swedish Tax Agency. The profit and loss for the various business activities are offset for taxation purposes.