FAQ

Our FAQ lists questions and answers on starting and running a business.

Accounts

What is book-keeping?

Book-keeping is a system of organising and handling financial (business) transactions in a company. This involves keeping receipts, invoices and other documents, then registering and reporting them in a chronological (time-based) and systematic (account-based) way.

What does book-keeping consist of?

Book-keeping comprises supporting vouchers, a day book and general ledger, profit and loss accounts, balance sheets and annual accounts (or in certain cases an annual report).

Do I have to keep accounts?

Yes! All entrepreneurs are obliged to maintain accounting records. This applies regardless of the type of company and scope of the business.

Can I obtain help with my book-keeping?

You can choose whether to use help with your book-keeping. However, as owner of the company you have ultimate responsibility for correct management of the bookkeeping.

What does an auditor do?

'Auditor' is not a protected title. However, 'approved public accountant' and 'authorised public accountant' are protected. People who hold these titles have undergone special training and passed examinations. Limited companies and economic associations are in obliged to appoint an approved or authorised public accountant when the business starts, if they are of a certain size. Small firms and partnerships are not subject to any auditor requirements. Read more information at the website of Swedish Companies Registration Office.

The auditor examines the year's accounting records and the board's performance of its assignments before the annual accounts/annual report. The auditor may not examine the daily accounting records.

What is the value of book-keeping?

Book-keeping benefits you and other interested parties. It helps you as a business owner to keep track of your finances. It also makes it easy for external parties to assess the potential in your company when you apply for financing or approach cooperation partners or new suppliers.

What counts as a financial transaction?

Financial transactions in your company may be payments in and out of cash, bank and other accounts, changes in receivables and liabilities, transfers between accounts, decisions about year-end appropriations and your own deposits and withdrawals. In other words, anything which changes the size and/or composition of the company's assets.

Each financial transaction in your company becomes a voucher in your book-keeping. The term 'voucher' is associated with the verb 'to vouch for', which means to endorse or support the truth of something. And that is exactly what a voucher is - supporting documentary evidence of a financial transaction.
 

What methods of accounting are used?

The method of accounting is the way you account for business transactions in your company. There are two methods - the cash method of accounting and the invoice (or accrual) method of accounting.

How do the accounting methods work?

Under the invoice method of accounting, you register incoming invoices as trade payables and outgoing invoices as trade receivables in the day book when received and sent. When these are subsequently paid, the liabilities (expense) and receivables (income) are reduced correspondingly. When the invoice method is used, VAT is reported to the Swedish Tax Agency based on the period in which the invoice was sent to the customer or received from the supplier or when the cash purchase or sale takes place.

The cash method of accounting is connected with the closing method of accounting. Under the cash method, you do not register incoming invoices as trade payables and outgoing invoices as trade receivables in the day book until they are paid. This method involves reporting VAT at the same time as the payment is made. The exception is the final VAT period of the year, just before the year-end accounts.
 

Can I use Microsoft Excel for my book-keeping?

No. It is legally prohibited to use Microsoft Excel (or similar programs) to maintain your accounts. Book-keeping programs and ledgers must be constructed in such a way as to allow all changes to be tracked and seen. As this is not possible in Excel, the program is not used for book-keeping.

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Bank loans

What types of company can obtain a bank loan?

All types of company. It doesn't matter what sector you operate in or what legal form of business you have.

What is required to obtain a bank loan?

As the bank must have confidence in you as a customer, it will want to assess your ability to pay back the loan.

When considering your application, the bank will look at the following:

  • You as an entrepreneur (experience, personal finances, references and training).
  • Your business plan; whether it is realistic and detailed.
  • Other owners of the company if relevant.
  • For established companies, the bank will also examine the balance sheet, annual accounts and maybe your tax return.

Banks and financial companies are more likely to lend to established companies which need to invest in equipment or machinery.

What collateral and repayment requirements will the bank have?

Banks do not generally take risks and always require some form of collateral. If you have managed previous loans properly, your chances of borrowing more money increase. For a newly started business, the entrepreneur's personal finances are also considered.

Loans must always be repaid, whatever happens. The interest rate is high if the risk is assessed as high. The bank is rarely an alternative for companies of questionable solvency.
 

What choice of loans do banks offer?

There is a wide range of loans available if the investment is safe and the business stable. The loans are available to all types of business and all sectors. Bank investments may be appropriate for long-term and short-term investments, and for covering variations in current expenditure.

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E-commerce

I will sell goods and/or services online. What rules apply?

If you will sell goods or services to consumers via an e-commerce shop, you must comply with the Swedish Act on Distance and Door-to-Door Selling. Under this act, the consumer has the right of withdrawal within 14 days. The right of withdrawal starts when the consumer has received the product or a considerable part of it. During these 14 days, the consumer is entitled to change his mind, send back the product and be reimbursed within 30 days. Certain goods and services have a longer right of withdrawal, while others have no right of withdrawal.

Under the Act on Distance and Door-to-Door Selling, you are also required to give the consumer clear and easily comprehensible information, both before and after the purchase.

How do I receive payment?

There are a number of solutions you can choose to receive payment for your e-commerce. Before choosing a web hotel for your e-shop, check whether the web hotel already has a link for payment solutions. The following choices are also available:

  • Payment draft: A third-party link between you and a card company, for example.
  • Bank payment: If your visitors have access to online banking, they can transfer money to your company straight from their account.
  • Virtual wallets: Your customers create an account and top it up from their bank account or credit card. Then they can pay from their virtual wallet.
  • SMS & WAP: To accept payment via SMS, you must contact a technology supplier or mobile service provider. With WAP, customers pay via a link in their mobile's browser. The payment is deducted from their mobile account.
  • E-invoice: Customers approve invoices via their online bank.
How do I choose and register a domain name?

When you register a web address, this is called registering a domain. This is done at a web hotel. Most web hotels have a simple search engine where you enter your company name or trademark, and the search engine lists the domain names that are available ( .com, .nu, .se, .biz, for example).

What are the VAT rules for e-commerce in Sweden?

When you provide Swedish consumers and companies with goods and services which are liable for VAT, you must be registered for VAT in Sweden and charge VAT. You register for VAT with the Swedish Tax Agency (Skatteverket).

The Swedish rates of VAT are 25 percent, 12 percent and 6 percent. Read more about VAT

What are the VAT rules for e-commerce in the EU?

If your company will provide consumers in other EU countries with goods and services which are liable for VAT, you may sometimes have to pay VAT in the recipient country - if the sale exceeds a certain amount, for example. The amount differs from country to country. If the sale is less than the threshold value, you will be required to pay the VAT in Sweden.

Read more about doing business in Europe at the EU website Your Europe.

What are cookies?

The simplest way of describing a cookie is as a little file which is placed on the visitor's browser. Cookies can be used to keep track of a visitor to your website, remember the contents of the shopping cart or identify a visitor.

Under the Electronic Communications Act, all visitors to a website with cookies must have access to information stating that the website contains cookies and the purpose for which cookies are used. Visitors must also consent to cookies being used.

How must personal data be handled?

If you are handling personal data, you must comply with the Swedish Personal Data Act. You must obtain a person's consent when storing and handling their personal data.

What rules apply if I want to set up a forum?

You must comply with the Swedish Act on Responsibility for Electronic Bulletin Boards if you are responsible for supervision of the content. In certain cases, you are also obliged to remove messages. The Swedish Data Inspection Board is the public authority supervising that authorities, companies, organizations and individuals follow the Acts.

Who do I approach if I have more questions about e-commerce?

You can approach the Swedish Post and Telecom Agency about legal matters concerning your website and e-commerce. The Internet Infrastructure Foundation can answer questions about registration and choice of domain name. The Swedish Data Inspection Board will help you with questions about handling personal data.

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Economic Association

How do I register an economic association?

You register an economic association with the Swedish Companies Registration Office. You must also apply for F-tax with the Swedish Tax Agency.

There are e-services available for company registration at verksamt.se, but in Swedish only. You must have a Swedish identity number and a Swedish e-identification (e-legitimation in Swedish) to get access to them.

Go to e-services for company registration (in Swedish)

How many owners must the company have?

An economic association must have at least 3 members - natural persons (private individuals) or legal entities (companies or other organisations).

Is there any capital investment requirement?

Yes. There is a minimum capital investment of SEK 1 or investment in the form of work.

What is my personal liability as owner of an economic association?

You do not have any personal liability; you only risk the capital you invested. If you are also a board member or managing director, you may have some personal liability for the association's unpaid taxes and contributions.

How is the economic association taxed?

The association pays tax on its profit for the year. The members are taxed on the salary and any dividend they are paid.

How is the association's name protected when registered?

The economic association has exclusive rights to the name in Sweden.

Is there a requirement to have an auditor?

Yes. At least one auditor. This may, for example, be someone in the economic association with a good knowledge of economy, although the auditor may also be a professional auditor. In very large economic associations, the auditor must be authorised. Further information is available from the Swedish Companies Registration Office.

How is the company's profit/loss distributed?

Profit may be distributed to members in the form of bonuses. The board makes a proposal regarding appropriation of the profit and the members decide on this at the annual general meeting.

Who represents the association and signs agreements etc?

The board always represents the association. If there is a managing director, he represents the association in matters concerning the day-to-day operation. For practical reasons, the board may also appoint special signatories who are entitled to represent the association. These may, but do not have to be, members of the board.

What happens if I fall ill?

As a working owner of an economic association, you are employed. The association must pay your sick pay for the first 14 days. Sickness benefit generating income is calculated on the basis of the salary you have drawn.

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Employing staff

How do I employ someone?

Employing someone is both about finding the right person for your business and following the rules that apply to you as an employer. The conditions of employment are agreed by you and the employee, taking into account applicable law and collective agreements.

When you employ staff, you must register as an employer with the Swedish Tax Agency. Every month, the Tax Agency sends out tax returns as documentation for payment of employer contributions and income tax for your employees.

There are e-services available for company registration at verksamt.se, but in Swedish only. You must have a Swedish identity number and a Swedish e-identification (e-legitimation in Swedish) to get access to them.

Go to e-services for employer registration (in Swedish)

What forms of employment can I choose?

There are two forms of employment - indefinite-term employment and fixed-term employment. Indefinite-term employment is the same as permanent employment.

There are four different types of fixed-term employment:

  • general fixed-term employment
  • temporary substitute employment
  • seasonal employment
  • fixed-term employment for employees who have attained the age of 67.
Do I have to write a contract of employment?

No. The contract of employment does not have to be in writing; an oral agreement is also valid. However, the Swedish Employment Protection Act states that an employer shall provide the employee with written information of all the employment terms and conditions that apply if the employment lasts more than three weeks. This written information must be submitted to the employee within one month. A written contract of employment is always preferable.

What is a collective agreement?

A collective agreement is a written agreement between an employers' organisation/an individual employer and an employees' organisation which defines the conditions of employment that will apply at the workplace. In many cases, a collective agreement replaces the statutory conditions that normally apply.

Can I employ staff whatever the legal form of my business?

Yes.

Do I have to pay social security contributions and tax for my employees?

Yes. You must register as an employer with the Swedish Tax Agency which will then send you a tax return every month. You report and pay employer contributions and tax deducted for employees to the Tax Agency.

What period of notice is an employee entitled to?

If the employee gives notice of termination, the period of notice is always one month in accordance with the Swedish Employment Protection Act, unless a longer period of notice has been agreed.

If the employer gives notice of termination, the following periods of notice apply:

  • 0 - 2 years employment: 1-month period of notice
  • 2 - 4 years employment: 2-month period of notice
  • 4 - 6 years employment: 3-month period of notice
  • 6 - 8 years employment: 4-month period of notice
  • 8 - 10 years employment: 5-month period of notice
  • 10 or more years employment: 6-month period of notice.


Probationary employment
In accordance with the Swedish Employment Protection Act, probationary employment may last for up to six months. Both the employer and the employee may terminate the probationary employment at any time during this period. The employer is obliged to notify the employee at least 14 days in advance. The employee must notify the employer of his or her decision to terminate the probationary employment.

Fixed-term employment
Fixed-term employment lasts until the employment period expires. Neither the employee nor the employer can normally terminate this type of employment in advance. However, agreement may be reached on early termination of the employment with a specific period of notice.

Bear in mind
You and your employees may agree on longer periods of notice than those defined in the Swedish Employment Protection Act. However, you may not agree on a period of notice shorter than one month for indefinite-term employment. If you are bound by a collective agreement, other conditions may apply to you and your employees.

Is an employee entitled to leave of absence to start up a company?

Yes. An employee is entitled to leave of up to six months to start a company

How do I insure my employees?

If you are bound by a collective or tie-in agreement, you must take out collectively agreed insurance for your employees.

Even if you are not bound by a collective or tie-in agreement, you may still take out collectively agreed or similar insurance for your employees. You take out this insurance with Fora or Collectum.

For other types of insurance, contact your insurance company.

How do I calculate the cost of an employee?

The cost of an employee does not consist of salary alone. As an employer, you pay social security contributions and usually holiday pay as well as the salary. In some cases, you are also liable to take out certain insurance policies for your employees. Many employers decide to provide insurance of their own accord as an employee benefit.

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Financing

Can I get a grant to start a business?

There are no general grants for business start-ups. In certain cases, if you are unemployed (or at risk of becoming unemployed), you may apply for a "Business Start-up" grant from the Swedish Public Employment Service.

The county administrative boards deal with regional policy company subsidies, which may also be granted for business start-ups in certain regions. Contact your own county administrative board (länsstyrelse) for more information. If you are made redundant due to shortage of work, you may in certain cases qualify for practical and financial support from the Swedish Job Security Foundation or Trygghetsrådet (TRS).

Are there any government loans for business start-ups?

Almi Företagspartner AB is a state-owned company with 19 subsidiaries in the country. Almi can award loans to companies, whatever the legal form of the business. The full financing solution is constructed according to the customer's particular situation and is normally put together in collaboration with a bank.

Can I borrow money without security?

Almi´s micro loan (mikrolån) is designed to facilitate and stimulate the establishment of new companies and to develop existing companies which are having difficulties obtaining a normal bank loan. The micro loan is designed for entrepreneurs with a low capital requirement - up to SEK 250,000.

Unlike Almi's other forms of financing, no co-financier is required for the micro loan. Almi may lend up to 100 per cent of the capital requirement up to SEK 250,000 without security. To compensate for the higher risk and avoid competing with the private market, Almi charges higher interest than the average bank rate. The loan will normally be required to be repaid in 3-5 years, and is interest-only for the first six months. Contact Almi in your region for more information.

Are there any special grants or loans for female entrepreneurs?

No. The government may not earmark gender-specific grants. However, there are available support funds for starting projects aimed at promoting female entrepreneurship in Sweden.

Does the Swedish Agency for Economic and Regional Growth have any grants for companies?

The Swedish Agency for Economic and Regional Growth administer various company grants that may be awarded in different prioritised support areas. To apply for regional investment support, a company must be active in support area A or B. The support areas cover virtually all Norrland and parts of the counties of Dalarna, Värmland, Örebro, Västmanland, Kalmar and Västra Götaland. In parts of the support areas, the opportunity for obtaining regional investment support is limited.

Are there grants to develop a product concept or innovation?

Grants for product concepts may be awarded by Almi Företagspartner in the county in question. They work closely with Innovation Sweden and can give support for good product concepts with the potential for commercialisation. Contact the Almi company in your county or find out more by visiting their website. Innovation grant potential varies according to where in Sweden you live.

Are there any EU grants I can apply for as an entrepreneur?

The EU does not have any general grants for business start-ups. In some regions, sectors and prioritised policy areas, there is potential for support. Grant applications are always subject to special conditions. The basic principle is that public grants must not distort or threaten to distort competition on the market. Consequently, very little support is awarded directly to individual companies.

However, support is available for areas such as skills development. You can also obtain advice on how to establish your company or acquire business partners in other EU countries. Enterprise Europe Network is a network for small and medium-sized enterprises which provides information and support in EU-related matters. It can also help find suitable EU support or project partners in other countries. The EU Information Centre has more information about the various forms of EU support. EUGO, The Points of Single Contact website, is available in all EU languages. This website allows you to easily access national Points of Single Contact which you can use to deal with administrative formalities.

How do I go about applying for EU support for skills development?

Contact the Swedish ESF Council. They deal with EU support for skills development in small and medium-sized enterprises.

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Import and export

I want to export goods. Where do I get information about this?

The Swedish Trade Council can help you with export matters and give you information about the country in which you are interested. They can help with contacts and they will also have broad knowledge about the country in question. You can also obtain help from the Swedish National Board of Trade (Kommerskollegium) and the Swedish Chambers of Commerce.

I will be trading with other EU countries. What should I bear in mind?

Customs declarations and payment of import duties are not required when trading with one of the 27 EU member states. However, you do need an international VAT number. When you trade with an EU country, the Swedish VAT number is prefixed by "SE" and "01" is placed after the number. In the EU, VAT is paid in the country of consumption, namely the country in which the product or service will ultimately be consumed.

It is a good idea to familiarise yourself with the VAT rules before you start trading in the EU. Please read The VAT Brochure from the Swedish Tax Agency for more information.

Read more about doing business in Europe at the EU website Your Europe.

I need help finding a supplier. Who do I approach?

The Swedish Chambers of Commerce in the import country can help you find suppliers and cooperation partners. They act as an intermediary body providing business contacts between companies in different countries. They can also give you advice or undertake assignments connected with import and export.

What customs duties apply?

If you are importing goods from a non-EU country, contact Swedish Customs (Tullverket) to find out what customs duty applies from the country in question.

There is free movement of goods and services in the EU.
 

Are there any special loans for foreign trade?

There are many organisations that can offer financial help. One such organisation is the Swedish Export Credits Guarantee Board (EKN) which can help with all kinds of guarantees. The Nordic Project Fund (NOPEF) offers help in the form of different loans. The Swedish Trade Council's website provides information on financing in a financing guide for export transactions.

If you want to establish or expand your business in emerging countries, Swedfund can help with investments and skills.
 

How do I pay for imports?
  • The most common methods of payment are as follows: Bank transfer or a commercial cheque which you purchase at the bank and send by post to the vendor who then cashes it at his bank.
  • Documentary collection: Documents such as shipping documents, invoices and delivery notes are sent by the vendor via the bank. The bank does not send these to the purchaser until the goods have been paid for.
  • Letter of credit: The purchaser instructs his bank to make a payment. The bank guarantees payment to the vendor when the document is presented to the bank.
How does the cooperation between purchaser and vendor work in import transactions?
  • Agent: An agent represents a company and acts as intermediary in a transaction. The agent often receives commission on the sale.
  • Dealer: You purchase the products yourself and then re-sell them under your own name. Dealers normally maintain stock and are subject to a different kind of financial risk than the agent.
  • Commission: You sell goods on behalf of another party but under your own name. One such example is the sale of second-hand clothing. The owner of the clothing pays the commission agent and is then paid for the clothing when it is sold.
Do I need an import or export licence?

There are import restrictions for certain goods. The restrictions are regulated by quotas, and as an entrepreneur you are required to apply for an import licence from the Swedish National Board of Trade (Kommerskollegium) and the Swedish Board of Agriculture (Jordburksverket).

If you are exporting goods, you need to know what documents are required by Swedish Customs. You also need to be aware of any special requirements in the recipient country.

Exports of agricultural products require an export licence from the Swedish Board of Agriculture. Swedish Customs can provide you with further information on export licences.

What am I liable for, and what is CE marking?

Anyone importing goods for subsequent sale in the EU is subject to product liability. This liability always applies when the manufacturer is located in a non-EU or non-EEA country. If you are importing goods into the EU/EEA, you must be able to show that they conform with the CE Marking Directive's health, safety and environment requirements. Certain high-risk products must also meet specific safety requirements. When these requirements have been confirmed, the manufacturer/importer is entitled to affix CE marking to the product. The CE mark is evidence that the product meets EU safety requirements. Read more about CE marking.

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Insurance

How do I insure my company?

The type of insurance you require is determined by your business and needs. It is important to remember that your home insurance is not valid for your business. Most insurance companies have designed packages for new business starts and small enterprises. Contact insurance companies, insurance brokers or banks for more information. If you belong to an industry association, there may be special insurance offers for members.

How do I insure my employees?

Your employer contribution includes basic insurance cover for your employees.

If you are bound by a collective or tie-in agreement, you must take out collectively agreed insurance for your employees. This type of insurance is centrally negotiated between employers' and employees' organisations.

Even if you are not bound by a collective or tie-in agreement, you may still take out collectively agreed or similar insurance for your employees.

How do I insure myself as an entrepreneur?

As your social security cover is based on your income, you should always check what applies in your particular case. Contact the Swedish Tax Agency (Skatteverket) and the Social Insurance Agency, (Försäkringskassan) for example. Join an unemployment insurance fund. This will give you some protection if the company does not develop according to plan.

Consider the following types of insurance:

  • Pension insurance or private pension saving. There are a large number of insurance companies, insurance brokers and banks. Search the Internet or telephone directory.
  • Accident insurance.
  • Insurance for business interruption due to sickness. In the event of sickness, you can obtain compensation for fixed costs.
  • You can also take out insurance to increase your sickness benefit and to cover the cost of medical care and substitutes.
  • Third-party insurance.
     
What happens if I fall ill?

Your sickness benefit and parental benefit are based on your sickness benefit generating income. This in turn is based on your estimated profit or salary in your company. The method used to calculate sickness benefit generating income varies according to the legal form of your business.

What happens if I become unemployed?

As an entrepreneur, you are entitled to compensation from unemployment insurance if you liquidate your company and cease all personal involvement in the company. It is also possible to suspend trading on a temporary basis, provided the interruption is not of a seasonal character. You are not allowed to engage in any business activity during the suspension of trading. The entitlement to compensation during the temporary suspension of trading applies once per business activity and person. Contact The Swedish Public Employment Service (Arbetsförmedlingen)

What unemployment insurance funds are available for entrepreneurs?

You can find out from the Swedish Federation of Unemployment Insurance Funds (SO) what unemployment insurance fund you belong to.

What happens about my pension?

For sole traders and partnerships, the income pension is based on the declared income for the company. For limited companies and economic associations, the future pension is based on the salary. Other types of compensation (such as sickness, parental and unemployment benefit) also count as pensionable income.

What do social security contributions give me as an entrepreneur?

Under Swedish law, an entrepreneur pays social security contributions - either as employer contributions or personal contributions. The contributions are administered by the Swedish Tax Agency and provide basic protection, which includes sickness benefit and retirement pension.

Does my income affect my protection as an entrepreneur?

Yes. Low income over a long period has an effect on your protection.

Can I receive compensation from unemployment insurance and start a business at the same time?

No. You are not allowed to start a company and receive compensation from unemployment insurance at the same time.

However, it may be possible to obtain a business start-up grant corresponding to unemployment insurance payments if you are unemployed (or at risk of becoming unemployed) and want to start a business. Read about Support while starting a business

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Limited liability company

How do I register a limited company?

You register a limited company with the Swedish Companies Registration Office and apply for F-tax to the Swedish Tax Agency.

There are e-services available for company registration at verksamt.se, but in Swedish only. You must have a Swedish identity number and a Swedish e-identification (e-legitimation in Swedish) to get access to them.

Go to e-services for company registration (in Swedish)

How many owners must a limited company have?

A limited company must have at least one owner. This can be an individual (natural person) or a company (legal entity).

Is there any capital investment requirement?

Minimum share capital of SEK 50,000 is required to start a limited company.

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

You do not normally have any personal liability; your only risk is the money you invested. If you are also a board member or managing director, there are situations in which you may be personally liable - if the company fails to pay its taxes, for example.

How is the company taxed?

The company pays tax on its profit for the year. The owners are taxed on the salary and any dividend they decide to take out.

What protection does the company name have following registration with the Swedish Companies Registration Office?

The company has exclusive rights to the name in Sweden.

Does a limited company have to have an auditor?

A limited company must have at least one authorised or approved public accountant. But small companies may choose not to have an auditor. If a small company decide to not have an auditor the company must notify the Swedish Companies Registration Office of the decision.

A limited company needs to have an auditor if it meets at least two of the following criteria, for each and every one of the two most recent financial years:

  • more than 3 employees (as an average)
  • a balance sheet total of more than 1.5 million Swedish kronor
  • a net turnover of more than 3 million Swedish kronor
     
How is the company's profit distributed?

The profit is normally distributed in proportion to the number of shares owned by each shareholder.

Who represents the company and can sign agreements etc?

The board always represents the company. If the company has a managing director, he or she represents the company in its routine administration. The board may also appoint one or more signatories who are entitled to sign documents on behalf of the company. A signatory may, but does not have to, serve as a board member.

What happens if I fall ill?

As a working owner of a limited company, you are employed and the company must pay your sick pay for the first 14 days. Your sickness benefit from the Social Insurance Agency (Försäkringskassan) is based on the salary you have previously drawn.

Can I use the share capital or must it remain in the bank account?

You can use the share capital to purchase assets which remain in the company. If more than half of the registered share capital is exhausted, special rules apply. You then risk being personally liable and having to liquidate the company. In order to protect the limited company's lenders, equity (assets minus liabilities) should equal or exceed the share capital.

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Limited partnership

How do I register a limited partnership?

You register a limited partnership with the Swedish Companies Registration Office and apply for F tax to the Swedish Tax Agency .

There are e-services available for company registration at verksamt.se, but in Swedish only. You must have a Swedish identity number and a Swedish e-identification (e-legitimation in Swedish) to get access to them.

Go to e-services for company registration (in Swedish)

How many owners must the company have?

A limited partnership must always have at least two owners - natural persons (private individuals) or legal entities (companies and/or other organisations). There must always be at least one person with full liability for the business (general partner) and at least one person liable for his own input (limited partner).

Is there any capital investment requirement?

There is no capital investment requirement for a general partner. For a limited partner, there is a minimum capital investment of SEK 1.

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

General partners in a limited partnership have unlimited personal liability and joint and several liability for what happens in the company. Limited partners only risk their invested capital.

How is the company taxed?

Each partner is taxed on his share of the net income for the year.

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.

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. Read more about the requirement to have an auditor for a limited partnership.

How is the company's profit/loss distributed?

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

Who represents the company?

The general partners.

What happens if I fall ill?

As owner of a limited partnership, you receive sickness benefit from the Social Insurance Agency, if you are a Swedish citizen. Sickness benefit generating income is calculated on the net income for each of the partners. Each partner may reduce his personal contribution by choosing to have 1, 14, 30, 60, or 90 waiting days. If you do not make an active choice, you will be given seven waiting days and pay a full personal contribution.

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Marketing

What is a marketing plan?

A marketing plan is a way of planning how you will market your company. The marketing plan is part of your business plan.

It does not have to be particularly comprehensive. The main thing is to ensure your marketing plans are tangible and clear. This will facilitate discussion with other parties and allow new approaches which may play an important part in your company's future. A marketing plan includes both short and long-term goals, which helps you plan your business development effectively.
 

How do I make a marketing plan?

Start by making a current status analysis. Have a close look at your market and try to determine whether there are any new trends or other factors that may affect your company in the future. Analyse competitors and your own company. Consider threats, opportunities, strengths and weaknesses.

Also describe your business concept and define the company's target group in the marketing plan. Where possible, examine what potential customers might think of your concept. This may help when you consider pricing, potential and goals.
 

How do I develop the marketing plan?

Define goals, both short-term and long-term. Produce strategies and describe how you will achieve the goals. The marketing plan must also indicate specific activities and campaigns that will be implemented during the year and their scheduling. You should regularly check that the budget and marketing plan are on track during the year. You can then take advantage of any lessons learned when you draw up the following year's budget and marketing plan.

How do I identify my target group?

There are many ways of finding customers and customer potential. Using different categories, start by dividing up your market and finding your own target group. You can consider factors such as age, gender, customers' social or economic situation and their interests or characteristics. You may want to compare your concept with your competitors to see what their clientele looks like.

How do I get customers interested in my products?

Marketing must attract attention, create interest and respond to a need, thereby resulting in action (a transaction). There are many ways of doing this, and they may vary depending on the make-up of the company, its location, what it sells and and who it sells to. Marketing initiatives include letters, personal phone calls or visits, adverts, exhibiting at fairs, internet, TV commercials and articles in daily papers, the weekly press and trade magazines. Marketing may also take the form of giveaways and special offers.

How do I find my target group?

Your target group can never be "everyone who wants to buy". No two customers are identical. All customers have their own needs and preferences. You need to choose the specific target group you will be aiming at and then develop this group. The market will therefore have to be divided into smaller parts, referred to as segments. A good reason for identifying market segments and dividing customers into groups is to enable you to reach the customer in the right way. You communicate with young people one way, and older people another way.

What is positioning?

If you "sweet-talk" your way into customers' awareness, they will think of you rather than your competitors. This will also give you a clearer market image and message. Examples include "the bakery with the tastiest cinnamon swirls in town", "the company with the sharpest design" or "first with the latest model". This is called positioning a company or product.

What is the value of marketing?

Marketing is about how you manage your customer relationships. When customers come back, profitability increases. A good reputation and personal recommendation are the most effective marketing tools that exist.

Can I market myself exactly as I please?

The Swedish Marketing Practices Act contains general provisions which state that marketing shall be consistent with generally accepted marketing practices and not be improperly conducted.

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Permits

Do I need a permit for my business?

Most businesses do not need a permit. However, it is important to find out whether your business activities require a permit, or whether you need to register with or notify a particular authority. Special requirements may apply to the actual business activities, the premises or you as business operator.

You can search for different permits using our Find permits service.

How do I apply for a permit?

Licensing and supervisory authorities may be local, regional or national. Local and regional authorities include municipalities, county administrative boards and police authorities. The Swedish Data Inspection Board and the National Food Administration are examples of national authorities.

There are often special forms for submitting the required details. You can find information on the authorities' own websites. The websites also have forms and contacts for further information.
 

Does it cost anything to apply for a permit?

Yes. You may sometimes have to pay an application fee. Contact your licensing authority for more information.

How long does it take to get a permit granted?

The time when you have to contact the authority, the processing time and any application and supervision fees vary. Contact the authority for more information before submitting your application. Remember that in some circumstances you are not allowed to start trading without a valid permit.

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Product development and innovation

I have an idea for a real innovation! Who do I contact to develop it?

Almi Företagspartner AB is a state-owned company which can help you take your idea further.

The Swedish Inventors' Association can help you meet like-minded people and exchange ideas and tips and obtain help with problem-solving.
 

How do I finance a new concept or product?

There are many ways of financing product development. Almi provides an innovation loan, which is designed for product development, protection of intellectual property rights and market research.

How can the Swedish Agency for Economic and Regional Growth (Tillväxtverket) help me with my product development?

The Swedish Agency for Economic and Regional Growth (Tillväxtverket) has funds for product development which can be applied for.

Where can I find partners for my product development/innovation?

You can contact the Industrial Development Centres, which give small companies the opportunity to use larger companies' resources and contacts, access project managers, find venture capital, meet researchers and public authorities and lots more.

Who do I contact to protect my innovation?

You can apply to the Swedish Patent and Registration Office (Patent- och registreringsverket, PRV) for patents for technical ideas, trademarks and designs.

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Sole trader

How do I register as a sole trader?

You need to apply to the Swedish Tax Agency for F-tax and VAT registration. If you also want to protect your company name, do so by registering with the Swedish Companies Registration Office.

There are e-services available for company registration at verksamt.se, but in Swedish only. You must have a Swedish identity number and a Swedish e-identification (e-legitimation in Swedish) to get access to them.

Go to e-services for company registration (in Swedish)

How many owners must the company have?

If you operate as a sole trader, there is always one physical owner.

How am I taxed as a sole trader?

You are taxed on the profit you make. Read more about taxes.

What is my personal liability as a sole trader?

You have unlimited personal liability. This means you must use your own personal funds to pay the company's liabilities if there is insufficient money in the company.

How is my name protected when registered?

When you register with the Swedish Companies Registration Office, your name is protected in the county in which your company is based. It is not a requirement to register your name, but it is a good idea, as it gives you exclusive rights to the name in the county where you will be operating. You can protect your name in other counties for payment of an additional fee.

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. Read about the requirement to have an auditor.

Can I share the profit with someone?

If you run the company with a husband, wife or partner you can share the profit with him or her. The Swedish Tax Agency can give you more information about how to go about this.

Is there any capital investment requirement?

No.

Who represents the company?

As business owner, you represent the company.

Can the company have employees?

Yes - but you have to register as an employer with the Swedish Tax Agency. Then you will receive a registration certificate from the Swedish Tax Agency. As owner, you are not employed. Read more about employing staff.

What happens if I fall ill?

As a self-employed person, you receive sickness benefit from the Social Insurance Agency. Sickness benefit generating income is calculated on the company's profit. In the build-up phase when you were unable to receive a "normal" income, the Social Insurance Agency (Försäkringskassan) estimates the amount of sickness benefit you are entitled to.

You may also choose to have 1, 14, 30, 60 or 90 waiting days. If you do not make an active choice, you will be given seven waiting days.
 

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Starting a business

I'm thinking of starting a business. Where do I begin?

A good way of planning a business start-up is to make a business plan. The business plan is a structured presentation of your thoughts on the product/service, market, competitors, strategies, business concept, income, costs and budget. A business plan will show you whether your concept can work and how to proceed in the next stage.

Where do I go for advice?

Start by contacting your municipal trade and industry office to find out what help is available as you set up your business. As initiatives vary from municipality to municipality, a good way of beginning is to obtain an overview of what is available in your own particular area. Find advisors.

Other organisations which offer free advice include Jobs and Society (Nyföretagarcentrum), Almi Företagspartner, IFS (advice in different languages) and Coompanion (for economic associations).

Are there any good templates for writing a budget?

At Almi Företagspartner's website there are some useful templates for your profit and cash flow budget, sales budget, capital requirement etc.

Is there a limit to how much I can earn from hobby activity?

There are no restrictions on how much you can earn from hobby activity. The difference between hobby activity and business activity is that hobby activity is not operating for gain. It is something you do in your leisure time and is not your main livelihood.

Hobby activity is normally taxed as earned income under the category employment income in the tax return. In principle, all income is taxable and all expenses are deductible. If your annual turnover exceeds SEK 30,000, you will be liable for VAT.

If you pursue business activity for gain, you must apply for F-tax and declare the profit under business income.

Can I start up a business and receive compensation from unemployment insurance at the same time?

When you start up a business, you are no longer entitled to receive compensation from unemployment insurance. You will only be considered unemployed and qualify for this type of compensation if you cease trading. It is possible to suspend trading at some point in the company's lifetime, in which case you will qualify for compensation from unemployment insurance.

Is it possible to have a business and be employed at the same time?

Yes it is possible. However, your business may not compete with your employer's business activities. It is therefore a good idea to inform your employer that you have your own business.

Can I have leave of absence in order to start a business?

If you have been with your employer for the last six consecutive months or at least 12 months during the last two years, you are entitled to leave of absence to start a company, provided your absence does not inconvenience the employer. The period of leave may not exceed six months.

Do I need to open a business account if I am starting up as a sole trader or can I use my personal account?

It is worth opening a separate bank account for your business transactions, in order to make a clear distinction between your personal and business finances. This will facilitate your own book-keeping and reporting to the Swedish Tax Agency.

Do I need special insurance or will my home insurance cover me?

Home insurance is not valid for business activity. You should therefore consider whether you need to take out additional insurance cover when you start your business. The types of insurance you need may depend on factors such as the sector in which you will be operating. Many insurance companies offer a package of insurance policies which include the most common types of cover. Check the different insurance companies' terms & conditions and prices. Read the FAQs about insurance.

What should I bear in mind when signing a rental contract for premises?

When you have found premises you would like to rent, read the rental contract carefully. You need to know what the rent includes and the period of notice required to break the lease. Bear in mind that the premises must meet requirements imposed by the authorities. These vary according to the type of business. A building permit is normally required for a change in use of the premises. You can find out more about requirements for different types of premises and building permits from your local authority.

Contact your insurance company and find out what requirements they have concerning the premises before they will insure them.
 

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Taxes

What is the difference between F-tax, A-tax and FA-tax?
  • F-tax is the tax paid by an entrepreneur who is a natural person or legal entity.
  • A-tax is paid by a natural person or legal entity who has taxable earned income.
  • You pay FA-tax if you have employment and a business. You pay A-tax on your income from employment and F-tax for your business.
How is a sole trader or partner taxed?

As a sole trader or partner in a trading or limited partnership, you pay personal contributions and municipal tax on the company's profit. Income over a certain amount is also subject to state tax.

How is a limited company or economic association taxed?

Limited companies and economic associations pay corporate tax on their profit. If you are an active owner of the company or member of the association and receive a salary for your work, you are considered to be employed. The company pays employer contributions and preliminary tax deductions on your behalf to the Swedish Tax Agency. These are deductible expenses in the company.

You may also receive a dividend from the company or association. Dividends are subject to special taxation rules, which you can read about in the Tax Agency's brochures.
 

How do I calculate operating profit?
  • Calculate your operating profit by deducting expense from income.
  • Deduct a standard allowance of 25 percent of the profit.
  • The remaining 75 percent is your profit and this counts as taxable income in your business. Partners in a trading or limited partnership are taxed on their own share of the business.
Can I subsequently change the information I submitted about the company's profit?

If during the course of the year you discover your operating profit will be higher or lower than initially stated in your notification of tax and contributions liability, you should submit a change notification to the Swedish Tax Agency. Otherwise, you may be liable for tax arrears or may pay too much tax during the year. If you have overpaid, this will be paid back when your preliminary tax is reconciled against your final tax. You can submit a change notification on a preliminary tax return.

Is it possible to enter a profit of SEK 0 on the notification of tax and contributions liability?

If you are having trouble estimating your profit, you can enter SEK 0 on the form. It is not the Swedish Tax Agency that requires you to make a profit; this is the purpose of your own business activity. At the end of the financial year, you will be taxed on the profit generated by your business.

You can also request deferment of payment of the company's preliminary tax during the first three months in a newly established company. Notify the Swedish Tax Agency in your notification of tax and contributions liability. The deferment is not a form of tax relief; the total tax is divided up into fewer months instead.
 

How do I report and pay tax?

The reporting and payment of taxes and contributions is determined by the legal form of business you have chosen and the size of your company's turnover.

The Swedish Tax Agency will send you special remittance slips for your tax payments. Preliminary tax is paid in equal monthly payments during the income year, normally on the 12th of the month. The size of the payments does not vary according to the results for a particular month.

Employer contributions and employees' tax deductions, and in some cases VAT too, are reported monthly on special tax returns. The form is sent to the company about one month before the deadline for its return.

What is required to qualify for F-tax?

In Sweden, anyone can start a company in principle, although special rules apply in the case of minors. If you are bound by an injunction against trading (pursuant to the prohibition of trading act), are in a state of bankruptcy or have a custodian, as defined in the Children and Parents Code, you are not allowed to start a company.

Before the Swedish Tax Agency will issue you with an F-tax certificate, it must be satisfied that you are conducting business activity. If you have an F-tax certificate, you pay your own taxes and contributions to the Tax Agency.

To qualify for an F-tax certificate, you must meet the following three criteria. Your business must be:

  • independent;
  • permanent; and
  • conducted for profit.
When might the Swedish Tax Agency reject my application for F-tax?

If the business is not sufficiently independent, the Swedish Tax Agency may decide that the business activity is actually employment. Activity which is not conducted for gain is classified as hobby activity. Activity which is not conducted for gain is classified as hobby activity. Business of a more sporadic nature, such as the sale of a picture, does not count as business activity, and is taxed as income from capital.

The F-tax certificate may be revoked if you do not conduct business activity or fail to report or pay your taxes and contributions or submit an income tax return.
 

What is VAT, value added tax?

Value added tax (VAT) is a tax we pay on virtually all consumption of goods and services. As a business owner, you make this payment to the state. VAT does not count as income or expense in a company, and does not affect its results. I Sweden, VAT is referred to as "moms".

As a business owner, you pay VAT on what you sell, and include a VAT charge in the cost. You pay the difference between the VAT you charge on your sales (output VAT) and the VAT you pay on your purchases (input VAT). The general rate of VAT is 25 percent, although certain goods and services have a lower rate.
 

How do I report VAT?

When you apply for F-tax, depending on the company's turnover you can choose whether to report VAT to the Swedish Tax Agency once a year in your income tax return or quarterly or monthly in a special VAT and PAYE return.

If you decide to report VAT annually, the Tax Agency will include preliminary VAT in the calculation of your F-tax.

  • VAT for the 1st quarter (January - March) must be received by 12 May.
  • VAT for the 2nd quarter (April- June) must be received by 17 August.
  • VAT for the 3rd quarter (July - September) must be received by 12 November
  • VAT for the 4th quarter (October - December) must be received by 12 February.
     
Can I make deductions for costs incurred prior to the business start-up?

Deductions for costs which arose before the company was established are only allowed for sole traders, not for trading partnerships, limited companies and economic associations.

As a sole trader, you may make deductions for your costs in the year of the business start-up and the year before. The costs must be associated with the business. The same applies to short-term equipment with an economic life of three years or less and equipment with a purchase value of below SEK 5,000 (excluding VAT). It is up to you to prove that the costs are associated with the business.
 

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The Services Directive

What is the Services Directive?

The Services Directive defines the rules and conditions that apply to entrepreneurs wishing to establish a business or perform temporary services on the EU internal market. To facilitate freedom of movement throughout the EU/EEA* area, member states must eliminate weighty and unnecessary bureaucracy, simplify administration for service providers and strengthen consumers' rights.
* the 27 EU member states, plus Iceland, Liechtenstein and Norway.

How does the Services Directive affect me as an entrepreneur?

It allows you to compete on the European market on a fairer basis. The Services Directive is designed to facilitate the long-term establishment of businesses and more temporary service provision on the EU internal market. The purpose of the Directive is also to remove various barriers to trade and simplify administration for entrepreneurs.

Points of Single Contacts
 

Can I sell services in Sweden without setting up a business there?

Yes, but your business must already be established in another EU/EEA country.

Does the Directive only apply to services I sell to private consumers?

No. The Directive applies to services provided both to businesses and consumers.

What sectors are covered by the Directive?

Examples of services covered by the Services Directive include:

  • Business services (management consultancy, certification and testing etc)
  • Facilities management, including maintenance and safety
  • Construction, including services of architects
  • Real estate services, such as estate agencies
  • Tourism (services of travel agencies and tour guides)
  • Leisure (services provided by sports centres and amusement parks)
  • Hotels, restaurants and catering
  • Information services (web portals, news agencies and publishing services)
  • Training and continuing training services
  • Hiring and leasing services (e.g. car rental)
  • Household support services
What sectors are not covered by the Directive?

The Services Directive does not apply to labour law, taxation or criminal law. A number of areas are not covered by the Directive. These include:

  • Services financed mainly through taxes (e.g. social services and healthcare)
  • Services of temporary work agencies
  • Financial services
  • Security services
  • Transport services
  • Certain gambling activities
  • Audio-visual services and radio broadcasts

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Trading partnership

How do I register a trading partnership?

You register a trading partnership with the Swedish Companies Registration Office and apply for F-tax to the Swedish Tax Agency.

There are e-services available for company registration at verksamt.se, but in Swedish only. You must have a Swedish identity number and a Swedish e-identification (e-legitimation in Swedish) to get access to them.

Go to e-services for company registration (in Swedish)

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).

Is there any capital investment requirement?

No.

What is my personal liability as owner of a trading partnership?

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.

How is the company taxed?

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

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.

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. Read more about when you need an auditor at the Swedish Companies Registration website.

How is the company's profit/loss distributed?

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

Who represents the company?

The partners/owners - either individually or jointly, according to your agreement.

What happens if I fall ill?

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

You may also reduce your personal contribution by choosing to have 1, 14, 30, 60 or 90 waiting days. If you do not make an active choice, you will be given seven waiting days and pay a full personal contribution.
 

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.

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Types of business, general

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 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.

There are e-services available for company registration at verksamt.se, but in Swedish only. You must have a Swedish identity number and a Swedish e-identification (e-legitimation in Swedish) to get access to them.

Go to e-services for company registration (in Swedish)

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.

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.
 

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 (Patent- och registreringsverket, PRV).
 

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.

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. Read about the different types of company. Compare them and see which suits your business best.
 

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.
 

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 one 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. Read more information at the website of the Swedish Companies Registration Office.
 

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.

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Venture capital

What is venture capital?

Venture capital is the collective term for capital invested in a company, where the investor is given shares in return for his investment. The term venture capital also covers the company's equity.

What is a venture capitalist?

In general, there are two types of venture capitalists:

  • Venture capital companies: Companies which invest in other companies by receiving shares in return for their investment.
  • Business angels: Private individuals who use their own personal funds to invest in small high-growth companies or new start-ups.

The venture capitalist invests in companies with growth potential. These are often newly started limited companies which are at a certain technical level. The idea is to earn income by selling the company after a certain period, for example.
 

How do I make contact with a venture capitalist?

It is not always easy to make contact with venture capitalists, although there are ways - via Connect Sweden, for example. This is a non-profit association which connects companies with growth potential, entrepreneurs and innovators with venture capital Connects can be found throughout Sweden.

Industrifonden offers venture capital, competence and a network of contacts to small and medium-sized companies with international growth potential. Industrifonden is an independent ever-green fund founded by the Swedish government.
 

When does a venture capitalist invest in a company?

A venture capitalist invests in a company when it has high-growth potential in a national and/or international market. Business angels may invest at an earlier stage and subsequently hand over to a venture capital company.

What type of controlling interest does a venture capitalist have in my company?

A venture capital company may have high requirements regarding control. They come in as owners and normally demand a seat on the board. Business angels usually also expect to have a controlling interest in the company.