Opening a branch
It is an independent entity which conducts business transactions in its own name, acting on behalf of the company. The branch must have a managing director. The managing director represents the branch and must register it with the Swedish Companies Registration Office prior to the commencement of business operations. When the branch has been registered, it is allocated a ten-digit corporate identity number. This number is a kind of identifier for the branch and is used in its contacts with authorities and other parties.
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.
Reporting to the Swedish Companies Registration Office
The rules regarding the preparation and submission of financial statements can be summarised as follows:
Branches of companies in the EEA which are comparable with limited liability companies:
- The accounting concludes with a year-end report.
- The annual report for the foreign company must be sent to the Swedish Companies Registration Office.
Branches of companies in the EEA which are not comparable with limited liability companies:
- The accounting concludes with an annual report.
- The annual report for the branch and the foreign company must be sent to the Swedish Companies Registration Office if the annual report is a public document in the homeland of the foreign company.
The financial statements must be prepared in Swedish or translated into Swedish.
A foreign company starting a branch in Sweden must pay income tax on its business operations.
Typical features of branches:
- A branch is not a separate legal person, but part of the foreign company.
- A branch is subject to Swedish law and Swedish regulatory decisions with regard to legal relationships that arise in connection with business activities in Sweden.
- A branch does not have its own share capital and its assets and liabilities are part of the company's total assets and liabilities.
- The branch accounts must be kept separate from those of the foreign company. This is partly in order to allow a separate annual report to be prepared for the branch.
- The branch's accounts and the managing directors' administration must be reviewed by an authorised public accountant.