Types of business

The page was last modified:

If you want to start a business in Sweden, you need to select a type of company. Sole trader, trading partnership/limited partnership, limited company and economic association are the most common types of company in Sweden.

Different rules regarding taxes, charges and registration apply depending on the form of business you choose.

Back to top

Sole trader

Sole trader may be appropriate if you are going to start a business on your own. As a sole trader you are personally responsible for all the company's obligations, such as liabilities and agreements.

Read more about Sole trader

Back to top

Limited company

A limited company can be started by one or more individuals. When starting a limited company, you must have at least SEK 50,000 in share capital. Personal responsibility for the company's debts is in principle limited to the share capital. However, there are situations where you personally can be held responsible for unpaid taxes and contributions, etc.

Read more about Limited company

Back to top

Trading partnership

A trading partnership is an alternative if at least two individuals or legal entities wish to start a business together. There is no requirement to invest capital, although the partners are personally, jointly and severally liable for the company's debts.

Read more about Trading partnership

Back to top

Economic association

Three people are required in order to start an economic association. An economic association must promote the economic interests of its members. Personal responsibility for the association's debts is in principle limited to the capital invested by the members.

Read more about Economic association

Back to top

Non-profit association

A non-profit association may operate a business. But the non-profit association must not be operated to promote the financial interests of its members. It must have a non-profit motive.

Read more about Non-profit association

Back to top

Community association

A community association is a legal person formed to manage projects that benefit several real properties. Projects might include private roads, parking areas, playgrounds, bridges, broadband networks, stairwells and lifts.

Read more about Community association

Back to top

Compare different forms of business

Choose the form of business enterprise (pdf)
This overview gives you a summary of some legal differences between the most common business structures in Sweden.

Types of business - general questions

Did you find this information helpful?

Please help us improve verksamt.se by telling us what you think about the page.

Mandatory field

Mandatory field

Processing of personal data

When you fill in the form, the personal data you include will be collected by the Swedish Companies Registration Office (Bolagsverket). Bolagsverket is responsible for this data. We store the data so that we can contact you. The data is not used for any other purpose.

More about personal data, your rights and how to complain

Responsible: Swedish Agency for Economic and Regional Growth

Back to top