Types of business

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.

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

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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.

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Limited company

A limited company can be started by one or more individuals. When starting a limited liability 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.

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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.

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Economic association

Three people are required in order to start an economic association. An economic association must promote the economic interests of its members. This means that the members should benefit financially from their participation in the association.

Compare the forms of business

An overview of the different forms of business enterprise in Sweden, from our brochure Starting Up a Business.

Types of business - general questions

 

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