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How to start a Business in Sweden

Sweden is a great place to start or expand a business. It has a strong economy, a modern tech scene, and a friendly business environment. If you’re looking for stability, innovation, and access to the European market, Sweden offers it all.

At Scandicorp, we help international entrepreneurs set up and run businesses in Sweden. We offer expert guidance, legal and financial support, and local know-how to make the whole process easier and faster for you.

Why Sweden?

  1. Stable and Strong Economy
     Sweden’s economy is known for being reliable and competitive. It supports innovation and technology and is home to a skilled and educated workforce. Read more about Sweden’s competitive advantage here. 
  2. A Hub for Innovation and Green Tech
     Sweden is a world leader in sustainability and digital innovation. It’s the home of many startups and big companies in green energy, healthcare, and tech.
  3. Easy to Do Business
     Starting and running a business in Sweden is simple. The rules are clear, the process is digital, and the government offers many tools to support startups and small companies.
  4. Perfect Location
     Sweden’s location makes it a great base for reaching the Nordic region, the EU, and beyond. The country has excellent transport and digital infrastructure.
  5. Great Quality of Life
     Sweden’s high standard of living and work-life balance attract top talent from around the world.

 

Might interest you: Guide to Sweden’s Regulatory Framework and Government Incentives

 

Step-by-Step: Starting Your Business in Sweden

1. Choose Your Business Structure

Pick the type of company that fits your needs. Most people choose:

  • Private Limited Company (AB) – Limited liability, suitable for small to mid-sized businesses.
  • Public Limited Company (AB Publ) – For large companies aiming to go public.
  • Sole Proprietorship – Easy to start but you carry full personal risk.
  • Branch Office – For companies based outside Sweden.

Tip: Scandicorp can help you pick the best structure.

2. Register Your Business

You must register with two offices:

  • Bolagsverket (Swedish Companies Registration Office)
  • Skatteverket (Swedish Tax Agency)

You’ll need to:

  • Pick a company name
  • Provide director and shareholder details
  • Pay the share capital (SEK 25,000 for an AB)

3. Apply for Permits and Licenses

Some industries require special permits — like food, healthcare, or finance. Scandicorp can check which licenses you need.

4. Set Up Your Finances

Open a Swedish business bank account and set up your accounting. You’ll also need to register for VAT and understand your tax obligations.

5. Understand Employment Laws

If you plan to hire, learn the rules around contracts, employee rights, benefits, and workplace safety. Sweden has strong worker protection laws.

 

Might interest you: Sweden as a Gateway to Nordic and Baltic Markets

 

Do I need a residence permit to start a business in Sweden as a non-EU citizen?

As a non-EU citizen, you must obtain a residence permit before you can start a business in Sweden. The Swedish Migration Agency (Migrationsverket) processes these applications, and approval is required before your arrival, typically taking about three months.

 

Registering Your Business: What to Expect

  • Reserve your business name.
  • Prepare the company documents.
  • Deposit the share capital.
  • File with Bolagsverket.
  • Register for tax with Skatteverket.

Once approved, you’ll get your official company ID number. You’re now ready to do business in Sweden!

Might interest you: Insights of Swedish Business Culture

 

What You’ll Need to Succeed

  • A strong business plan
  • Legal and tax knowledge
  • Financial planning and accounting
  • Marketing tailored to the Swedish market
  • Local contacts and partnerships

Scandicorp can support you in all these areas.

 

Taxes and Compliance

Sweden’s corporate tax rate is 22%. You’ll also need to follow rules on VAT, reporting, and auditing.

Good to know:

  • There’s no withholding tax on interest paid abroad.
  • There are clear rules for capital gains and dividends.
  • Sweden has many tax treaties and EU protections.

Why Choose Scandicorp?

  • We specialize in helping foreign entrepreneurs.
  • We offer full service: setup, legal, tax, accounting, and management.
  • We provide local directors and office addresses if needed.
  • We act as your long-term partner, not just a service provider.

You focus on your business — we’ll handle the rest.

 

Special Requirements for Foreign Entrepreneurs

  • At least 50% of your company’s board must reside in the EEA. If you are a non-EEA resident, you’ll need a local director or representative in Sweden. Scandicorp can provide local directors and office addresses to meet these requirements.
  • You can be the sole shareholder, regardless of nationality, but to manage the company in Sweden, you may need a residence or work permit. We guide you through the latest immigration and compliance steps.
  • Opening a Swedish bank account as a foreigner can be challenging due to strict anti-money laundering rules. We facilitate introductions and help prepare the required documentation for a smooth process.

How Long Does It Take?

  • Company registration: About two to three weeks from submission of complete documents. Share capital must be deposited before filing.
  • Permits: Varies by sector; we help identify and expedite the relevant applications.
  • Once registered, you can begin trading immediately.

Government Support for Startups

  • Sweden offers grants and loans for innovative and sustainable businesses through agencies like Vinnova, Almi, and Tillväxtverket.
  • Tax advantages include no withholding tax on interest paid abroad, tax-exempt dividends and capital gains on business-related shares, and access to EU funding programs.
  • Scandicorp helps you navigate these opportunities and connect with local business incubators and support networks.

 

Getting in Touch

To start a conversation with Scandicorp and learn more about how we can assist you, please contact us via email at info@scandicorp.com or call us at +46 8 600 31 57. 

Our team is eager to hear from you and begin a partnership that helps bring your business vision to life in Sweden.

Embarking on this journey with Scandicorp means having a reliable and knowledgeable partner by your side, committed to the growth and success of your business in Sweden.

FAQs and Additional Resources

Starting a business in a new country comes with many questions. At Scandicorp, we understand the importance of having the right information at your fingertips. To assist you further, we have compiled a list of frequently asked questions about starting a business in Sweden. These FAQs cover a range of topics to give you a clearer understanding of what to expect and how to prepare for your business venture.

Frequently Asked Questions

What are the steps to register a company in Sweden?

To register a company in Sweden, follow these essential steps:

  1. Choose a Business Structure: Decide on the most suitable legal structure, such as a private limited company (AB), partnership, or sole proprietorship.
  2. Prepare the Required Documentation: This includes articles of association, registration application forms, and identification for all stakeholders involved.
  3. Register with Bolagsverket: Submit the necessary documents to the Swedish Companies Registration Office (Bolagsverket) to legally establish your company and receive a corporate ID number.
  4. Register for Taxes with Skatteverket: Register the business with the Swedish Tax Agency (Skatteverket) for VAT, payroll, and corporate taxes.
  5. Set Up a Bank Account: Deposit the required share capital (for private limited companies, typically SEK 25,000) in a corporate bank account to complete registration.

The process is relatively streamlined, and if documentation is accurate, company registration can be completed online.

What types of business structures can I choose from?

Sweden offers several business structures, each suited to different business needs:

  • Private Limited Company (Aktiebolag or AB): The most common form, with limited liability, requiring a minimum share capital of SEK 25,000.
  • Public Limited Company (Publikt Aktiebolag or AB publ): Suitable for larger businesses aiming to be listed on stock exchanges; minimum share capital of SEK 500,000 is required.
  • Sole Proprietorship (Enskild Firma): An individual-owned business with personal liability, typically for small or freelance enterprises.
  • Partnerships (Handelsbolag or Kommanditbolag): Handelsbolag (general partnerships) involve shared liability, while Kommanditbolag (limited partnerships) include limited liability for some partners.
  • Branch Office (Filial): A foreign company’s branch registered in Sweden, operating as part of the parent entity.

Each structure has distinct liability, taxation, and management implications, so choosing the right one is crucial.

How long does it take to start a business in Sweden?

The typical timeframe for registering a business in Sweden is approximately two to three weeks, though this can vary based on the accuracy of submitted documents and the chosen business structure. Online registrations are often processed faster than paper submissions. It’s also important to factor in any specific permits or industry licenses that may extend the setup time.

Do I need a Swedish resident director to start a company?

Yes, Swedish law requires that at least 50% of the board members in a private or public limited company reside within the European Economic Area (EEA). For non-EEA residents, appointing an EEA-resident director or board member is typically necessary to comply with local regulations.

However, for certain structures, such as branch offices of foreign companies, a local representative may be required rather than a board member. Scandicorp can assist in providing local directors or representatives if needed.

Are there any specific licenses or permits required for certain industries?

Yes, some industries in Sweden require specific licenses or permits due to regulatory or safety standards. These sectors include:

  • Financial Services: Banking, insurance, and investment firms require permits from the Swedish Financial Supervisory Authority.
  • Healthcare and Pharmaceuticals: Healthcare providers and pharmaceutical companies must obtain licensing from the Health and Social Care Inspectorate (IVO) and the Medical Products Agency.
  • Construction and Real Estate: Companies in construction may need local permits and environmental assessments for large projects.
  • Food and Beverage: Businesses in the food industry, particularly restaurants and food manufacturing, need permits from the National Food Agency and may also require alcohol licenses.
  • Education and Childcare: Schools, childcare centers, and educational services are regulated by the Swedish National Agency for Education.

These licenses must be obtained before commencing operations, as they ensure compliance with Sweden’s regulatory standards.

 

Please find more information in our Corporate Fact Sheet in the meantime.