Start-up costs in Sweden start from €3000 + VAT.
What do you need to know before opening a company in Sweden?
You do not need to open a bank account with a Swedish bank to register in Sweden. However, you will need to come to Sweden and participate in the whole process. It is also possible to open a bank account after setting up a company.
The information required to set up a business in Sweden includes a notarised copy of a passport, proof of address, contact details and a certificate from the tax authorities that the founder has no debts and can apply for a VAT identification code in Sweden.
Why start a business in Sweden?
A great way to expand your business and look for new opportunities is to start a business in Sweden. It’s easy to see that Scandinavia plays an important role today: it’s not just leading the way in terms of living standards or the number of consumers shopping online – Scandinavian culture, welfare state policies and modern, evolving European society have many advantages that continue to attract foreign investors/businesses.
The Swedish market is the largest in Scandinavia. High purchasing power is combined with a stable political environment, low corruption levels and a lenient bureaucratic system that often causes many problems when setting up a business in other foreign countries. In addition, Sweden is an innovative and business-friendly country, with a society that is open to multinationals and tolerant of foreign investors.
To make it easier to set up a business in Sweden, entrepreneurs need to familiarise themselves with the tax system and the basic requirements for foreigners. To ensure that the registration process runs smoothly and that all the documents are filled in correctly, it is best to contact a professional who can help you overcome the confusing procedure of registering a company in Sweden.
Business organisations in Sweden
Please note that if a foreigner sets up a company in Sweden, one of the founders must be a Swedish citizen. However, there is a way to avoid this – order a contact person service, which we can provide. The form of the company to be set up should also be chosen appropriately. In Sweden, the most popular is Aktiebolag AB (AB), which is divided into two possible variants: Publikt Aktebolag (AB), which is a public limited company equivalent to an Estonian limited liability company (share capital 50000€), and Privat Aktiebolag (AB), which is a private limited company (equivalent to an Estonian limited liability company) with a share capital of 5000€. We specialise in setting up AB companies. Another fast-growing form of company in Sweden is Svensk Utlandsregistrerad Filial (SUF), a Swedish branch registered abroad.
How is a company set up in Sweden?
Registering a company in Sweden is more convenient than ever – once selected, we offer our services to clients remotely, with professionals sending all the documents. The registration itself usually takes 10-14 working days.
The prospective entrepreneur will receive a questionnaire and a list of documents to fill in. We will contact the notary and, if necessary, ask you for further details.
Aktiebolag (AB) has two options. Publikt aktiebolag (AB publ) – a public limited company corresponding to an Estonian AS (required capital 50000€) and Privat aktiebolag (AB) – a private limited company corresponding to an Estonian OÜ (required capital 5000€).
Setting up a company in Sweden involves several types of taxes:
The standard VAT rate in Sweden is 25%
The corporate tax rate is 21,4%
Reduced VAT rate of 12% for food and hotels
Newspapers, magazines, books, passenger transport and concerts 6%.
Sweden’s strong public finances, sound banking system, political stability and well-functioning economy make it a strong place to do business. Sweden has an excellent infrastructure, thanks to extensive public investment. High-tech start-ups are prevalent in the country for several reasons. The country also has a higher level of start-up support than the world average, indicating a strong presence of venture capital – critical for any start-up ecosystem.
If you have a business idea and a clear goal, setting up a business in Sweden can be relatively easy with our services. In the context of an internationally successful Swedish economy, who knows, maybe a small business will soon become a company like H&M, IKEA or Electrolux, which has also boldly entered the international arena in small steps.
LCPC aims to provide you and your business with high quality assistance. Setting up a company is one of the first steps in building your business, and we will help you along the way!
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