Limited company

Personal responsibility for the company's debts is in principle limited to the share capital.

A limited liability company is represented by a board and in certain cases by a managing director (MD). If you are also a board member or managing director, you may have some personal liability for the association's unpaid taxes and contributions.

Taxes and contributions

A limited liability company pays corporate tax at the rate of 26.3 per cent on the company's profit for the year. In a limited liability company, profits are distributed to the shareholders through dividends. Dividends are taxed in shareholders’ tax returns as income from capital. Special rules apply to close companies.

Shareholders who work in the company are employed and their salary is taxed in the same way as for employees with no shares.

Company registration

A limited liability company must be registered with the Swedish Companies Registration Office. A limited liability company only becomes a legal person when it has been registered with the Swedish Companies Registration Office. Registration provides nationwide protection of the company name.

When starting a limited liability company, you will need to apply for F tax and VAT registration and register as an employer.