Limited companyThe page was last modified:
A limited company can be started by one or more natural persons or legal entities. When starting a limited company, you must have at least SEK 25,000 in share capital.
Personal responsibility for the company's debts is in principle limited to the share capital. However, members of the board of directors may be personally liable if they mismanage their assignments.
A limited company is represented by a board and in certain cases by a managing director (MD). If the board members are fewer than three, there must also be at least one deputy member appointed.
Taxes and contributions
A limited company pays corporate tax at the rate of 21.4 per cent on the company's profit for the year. In a limited 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 (which most limited liability companies are).
Shareholders who work in the company are employed and their salary is taxed in the same way as for employees with no shares.
Frequently asked questions
Responsible: Swedish Agency for Economic and Regional Growth