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

No. It is legally prohibited to use Microsoft Excel (or similar programs) to maintain your accounts. Book keeping or accounting 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 allowed to use for book keeping.

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

The invoice method of accounting is the main method of the Swedish Book keeping Act. 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. Companies not exceeding an annual turnover of SEK 3 million may choose to currently record according to the cash method of accounting.

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.
 

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 and liabilities.

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.
 

Accounting comprises supporting vouchers, a day book and general ledger, that´s called book keeping and is regulated in the Swedish Book keeping Act. But accounting also includes categorising accounts, analysing, making budgets, profit and loss accounts, balance sheets and other reports. The accounts is always closed with an annual account or an annual report depending on the form of the business as regulated in the Swedish Annual Accounting Act and standards of the Swedish Accounting Standards Board (BFN).

'Auditor' is not a protected title. However 'authorized auditor' (auktoriserad revisor) and  'approved auditor' (godkänd revisor) are. People who hold these titles have undergone special training and passed examinations.

The auditor's role is to assess annual reports of the company and make sure they are correct and reliable. The auditor's role is not to manage the accounts.

For sole traders, small trading partnerships and small limited companies there are no requirements in appointing an auditor. Unless the criterias of bigger companies are fulfilled, then it´s mandatory with auditing also for those.

Economic associations always have to appoint an auditor. The auditor of small economic associations does not need to be an approved or authorized auditor. It suffices if he or she is competent for the assignment.

Limited companies, trading partnerships, sole traders and economic associations of a certain size are required to appoint an approved or authorized auditor.

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.

Accounting 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.

The method of accounting, or more accurately book keeping, is how you account for business transactions in your company. There are two methods - the cash method and the invoice (or accrual) method.

You can apply for loans at Almi. Almi has a higher interest rate than the bank since they are not allowed to compete with the bank. Almi has various offers of funding depending on what region your business is in.

At certain stages it can also be right to bring in private equity to the business.

To the website of Almi

There is a wide range of loans available if the investment is safe and the business is 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.

Banks do not generally take uncalculated and uncompensated risks and usually 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.
 

As the bank want to feel confidence in you as a customer, it will surley 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.

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

You register an economic association with the Swedish Companies Registration Office. Bear in mind that you must have the regulations and protocol of the association done before you can register your economic association through the e-service.

When the association is registered it will receive a registration number. When received, you can 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 Swedish Companies Registration Office

Go to Swedish Tax Agency

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

The company has exclusive rights to the name within the registered business activities 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. 

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. If the association declares a loss, it can be rolled forward and set off against future taxable profit.

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

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

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.

Go to the Swedish Companies Registration Office

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

As a working owner of an economic association, you are employed. The first 14 days you are sick your employer pays you sick pay instead of your regular salary. After that, you can apply for sickness benefit from Försäkringskassan.

Go to Försäkringskassan

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.

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.

Yes.

Yes. You must register as an employer with the Swedish Tax Agency. You report and pay employer contributions and tax deducted for employees to the Tax Agency.

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.

Read about contract of employment

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.

Calculate salary and insurance (in Swedish)

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 (Skatteverket). 

There are e-services available for employer 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.

Read about employing at the Swedish Tax Agency website

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

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.

Go to Fora

Go to Collectum

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

The company may not compete with the employers' business, the leave may not entail a significant inconvenience to the employer.

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.

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.

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.

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. Go to Enterprise Europe Network
• 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. Go to EUGO

Almi 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.

Go to Almi

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.

Go to Almi

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 other security than a 10 percent personal guarantee. 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 free of instalment for the first six months. Contact Almi in your region for more information.

Go to Almi

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.
Go to 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 Foundation or TRR (Trygghetsrådet).

Go to county administrative boards

Go to the Swedish Job Foundation 

Go to TRR

The Swedish Agency for Economic and Regional Growth (Tillväxtverket) 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.

Go to The Swedish Agency for Economic and Regional Growth

The most common is to finance the start-up with personal funds, but if funds are missing you can turn to a financier. Procedures and conditions about financing can be different, but can normally be divided into loans, risk capital and grants.

You can benefit from mapping out your contacts before you decide on a certain type of financing. Many business start with capital lended from business connections or family or by making someone a joint owner.

Crowdfunding is a sort of collective micro financing and can be structured in several different ways.  In conclusion it is a number of people working together through many small contributions or fees to fulfil a project or development of an idea. Those processes often take place on the internet, through different type of systems for vote and communities.

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

Go to the Swedish ESF Council

There are many organisations that can offer financial help. One such organisation is the EKN (Exportkreditnämnden) which can help with all kinds of guarantees. The Nordic Project Fund (Nordiska projektexportfonden, 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.

Go to EKN

Go to the Nordic Project Fund

Go to Swedfund

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 National Board of Trade Sweden (Kommerskollegium) and the Swedish Board of Agriculture (Jordbruksverket). 

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. On the Swedish Customs’ website you can read more about goods that may need an export licence and which authorities you must then contact 

Go to the National Board of Trade Sweden

Go to the Swedish Board of Agriculture 

Go to the Swedish Customs

• 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.

• 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.

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.

The Business Sweden 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 National Board of Trade Kommerskollegium) and the Sweden's Chambers of Commerce (Sveriges Handelskamrar).

Go to Business Sweden

Go to the National Board of Trade

Go to Sweden's Chambers of Commerce

On the EU website Your Europe you can find some practical advice about doing business in Europe. On the website you can read about what laws, regulations, business entities etc. are applicable for respective country.

Customs declarations and payment of import duties are not required when trading with one of the 28 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.

However some exceptions exists, why 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.

Go to Your Europe 

Go to Swedish Tax Agency

Download the VAT Brochure at the Swedish Tax Ageny 

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

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.

Go to the Swedish Customs

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.

Read more about support while starting a business (Arbetsförmedlingen)

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

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.

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.

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. If you join an unemployment insurance fund, this will give you some protection if the company does not develop according to plan.
Go to the Swedish Tax Agency 

Go to the Social Insurance Agency

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.
   

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.

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)

As an entrepreneur you have the same right to the social insurance system as employees. This means you are entitled to sickness benefit, parental benefit, pension etc. However there are some differences.

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.

Read more about social insurance at the Social Insurance Agency

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.

Read more about how to calculate pension at the Swedish Pensions Agency website

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

Go to the Swedish Federation of Unemployment Insurance Funds

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.

A small limited company is not required to have an auditor. However it is required to have an auditor if it exceeded at least two of the following criteria in both 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

The company must have exceeded the same two criteria both financial years. The auditor must be either authorised or approved.

Register an auditor with the Swedish Companies Registration Office (Bolagsverket)

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

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 at verksamt.se (in Swedish)

Register a company with Swedish Companies Registration Office (Bolagsverket)

Apply for F-tax to the Swedish Tax Agency (Skatteverket)

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.

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

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

Minimum share capital of SEK 25,000 is required to start a limited company.

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.

Read about sickness benefits at the Social Insurance Agency (Försäkringskassan)

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.

The company has exclusive rights to the name in Sweden within the registered business activities. 

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.

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

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)

Register a company with the Swedish Companies Registration Office (Bolagsverket)

Apply for F-tax to the Swedish Tax Agency (Skatteverket)

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.

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

For partners in limited companies the regulations about profit distribution do not apply according to the Partnership Act. The partners must always agree on how to distribute the profit, normally in the articles of partnership.

The distribution agreed on by the partners is normally the basis for taxation. However, the distribution of profit or loss have to be businesslike to be accepted for tax purpose. 

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).

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 at the Swedish Companies Registration Office (Bolagsverket)

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

As owner of a limited partnership, you receive sickness benefit from the Social Insurance Agency (Försäkringskassan), 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 their 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.

Read about sickness benefit at the Social Insurance Agency (Försäkringskassan)

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.

The general partners.

The Marketing Act, 2008:486 (Marknadsföringslagen) contains general provisions which state that marketing shall be consistent with generally accepted marketing practices and not be improperly conducted.

Read the Marketing Act 2008:486 in the Swedish Code of Statues (in Swedish)

Define goals, both short-term and long-term. Produce strategies and describe how you will achieve the goals. The marketing plan should 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.

Your target group should never be "everyone who wants to buy". Not 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 should therefore 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. Perhaps you should communicate with young people one way, and older people another way.

Marketing should 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 composition of the company, its location, what it sells 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.

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.

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.
 

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.
 

Positioning is how the costumer perceives you in comparison to competitors. 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.

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.

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.

Search for permits

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

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.
 

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.

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.

The Swedish Agency for Economic and Regional Growth (Tillväxtverket) can also be helpful with financing product development.

Go to Almi

Go to the Swedish Agency for Economic and Regional Growth (Tillväxtverket) 

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

SUF (Svenska Uppfinnareföreningen) can help you meet like-minded people and exchange ideas and tips and obtain help with problem-solving.

Go to Almi

Go to SUF
 

You can contact the Industrial Development Centres (Industriella uvecklingscentra, IUC) 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.

Go to Industrial Development Centres (IUC)

At the Swedish Intellectual Property Office (Patent- och registreringsverket, PRV), you can apply for patent to protect your invention and you can register your trademark and design for protection of these.

Go to the Swedish Intellectual Property Office

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.

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

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

You need to apply to the Swedish Tax Agency (Skatteverket) 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 (Bolagsverket).

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)

Apply for F-tax to the Swedish Tax Agency

Register a company with the Swedish Companies Registration Office

When you register with the Swedish Companies Registration Office, your name is protected within the registered business activities 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. 

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

No, not normally. There are exceptions for large companies, but it is rare for sole traders to be of this certain size.

Read about the requirement to have an auditor.

No.

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.

Read more about sickness benefit qualifying income at the Social Insurance Agency

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.

As business owner, you represent the company.

At Almi's website there are some useful templates for your profit and cash flow budget, sales budget, capital requirement etc. Be aware that the templates are in Swedish.

Go to templates at Almi's website (in Swedish)

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.

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.

Contact Arbetsförmedlingen about support while starting a business

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

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.

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.

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. If you are public employee you must always inform your employer if you are about to start at business.

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

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.
 

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 Foundation (Nyföretagarcentrum)
• Almi
• Coompanion (for economic associations).

Deductions for costs which arose before the company was established are only allowed for sole traders, not for trading partnerships, limited companies or 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. It is up to you to prove that the costs are associated with the business.
 

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.

• Preliminary tax at the Swedish Tax Agency

You register your business by applying to the Swedish Tax Agency for F-tax.

You can apply for F-tax via our e-services (only available in Swedish). You must have a Swedish identity number and a Swedish e-identification (e-legitimation in Swedish).

Otherwise, you can apply for F-tax by sending in the form "Företagsregistrering" (SKV 462). 

Go to e-services to apply for F-tax (in Swedish)

Read more about F-tax at the Swedish Tax Agency

To calculate the operational profit there are a number of circumstances to consider. Among other things the calculation differs depending on type of entity. You can get a roughly preliminary result by deducting expense from income.

For sole traders and partners in trading partnerships:

• 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.

Bear in mind that tax allocation reserves and other closing provisions can affect the taxable income.

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.

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, quarterly or monthly in a VAT return.

• 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.

Read more about VAT

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.

Go to the Swedish Tax Agency's brochures

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.

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.
 

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 approval for F-tax, it must be satisfied that you are conducting business activity. If you have been approved for F-tax, you pay your own taxes and contributions to the Tax Agency.

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

• independent
• permanent
• conducted for profit.

• 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.

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. In 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.
 

• Read more about VAT at the Swedish Tax Agency

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. 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.
 

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

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

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

Download Provide services with EU´s points of single contact (pdf)

Download Easier to sell products with the EU´s contact points (pdf)

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 Services Directive has been implemented in Sweden through the act and the regulation for Services in the internal market.

* the 28 EU member states, plus Iceland, Liechtenstein and Norway.

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

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

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.

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

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)

Register a company with the Swedish Companies Registration Office (Bolagsverket)

Apply for F-tax to the Swedish Tax Agency(Skatteverket)

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.

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

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

A trading partnership must always have at least two owners - natural persons (private individuals) or legal entities (companies or other organisations).

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's website

No.

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.

Go to the Social Insurance Agency

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.

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

You can search for the name in the Trade and Industry Register, provided by the Swedish Companies Registration Office (Bolagsverket) 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.

Search in the Trade and Industry Register

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

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.

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 an authorised auditor or an approved auditor. 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 at the Swedish Companies Registration Office (Bolagsverket)
 

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.
 

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).

Go to the Swedish Patent and Registration Office (Patent- och registreringsverket, PRV)

When you start up a company, you must register the legal form of the business with the Swedish Companies Registration Office (Bolagsverket). 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 (Skatteverket). 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)

Register a company with the Swedish Companies Registration Office (Bolagsverket)

Apply for F-tax to the Swedish Tax Agency (Skatteverket)

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.
 

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 different types of businesses
 

The Swedish Companies Registration Office (Bolagsverket) 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.

See registration fees at the Swedish Companies Registration Office

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. Connect 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.

Go to Connect Sweden (in Swedish)

Go to Industrifonden

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.

Tenture capitalists usually invests in companies with high growth potential. These companies are often newly started limited companies which are at a certain technical level. The idea is to earn income by selling their share of the company after a certain period, for example.
 

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 can also be used for part of company's equity.

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.

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.