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How to start a Business in Sweden as a Foreigner

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 reliable and competitive, supports innovation and technology, and is home to a skilled workforce. Read more about Sweden’s competitive advantage here.
  2. A Hub for Innovation and Green Tech — Sweden leads in sustainability and digital innovation. It’s home to startups and large companies in green energy, healthcare, and tech.
  3. Easy to Do Business — Starting and running a business is straightforward with clear rules, digital processes, and government support.
  4. Perfect Location — Sweden’s location provides access to the Nordic region, the EU, and beyond, with excellent transport and digital infrastructure.
  5. Great Quality of Life — 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 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 full personal liability.
  • Branch Office — For companies based outside Sweden.

Tip: Scandicorp can help you pick the best structure.

2. Register Your Business

Register with:

  • 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

Certain industries like food, healthcare, or finance need special permits. Scandicorp can help you check requirements.

4. Set Up Your Finances

Open a Swedish business bank account, arrange accounting, register for VAT, and understand tax obligations.

5. Understand Employment Laws

If hiring staff, learn the rules for contracts, employee rights, benefits, and workplace safety.

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 need a residence permit before starting a business. The Swedish Migration Agency (Migrationsverket) processes these applications, usually within three months.

Registering Your Business: What to Expect

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

Once approved, you’ll get your official company ID number — 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 for the Swedish market
  • Local contacts and partnerships

Scandicorp supports you in all these areas.

Taxes and Compliance

Sweden’s corporate tax rate is 22%. You’ll need to handle VAT, reporting, and auditing correctly.

Good to know:

  • No withholding tax on interest paid abroad.
  • Clear rules for capital gains and dividends.
  • Many tax treaties and EU protections.

Why Choose Scandicorp?

  • We specialize in helping foreign entrepreneurs.
  • Full-service setup: legal, tax, accounting, management.
  • Local directors and office addresses if needed.
  • Your long-term partner — not just a service provider.

You focus on your business — we handle the rest.

Special Requirements for Foreign Entrepreneurs

  • At least 50% of your board must reside in the EEA. Scandicorp provides local directors and addresses.
  • You can be the sole shareholder but may need a residence or work permit to manage the company locally.
  • Opening a Swedish bank account can be challenging. We help prepare the documents and introductions.

How Long Does It Take?

  • Company registration: about two to three weeks once documents are complete.
  • Permits: varies by sector — we help identify and expedite applications.
  • Once registered, you can trade immediately.

Government Support for Startups

  • Grants and loans through agencies like Vinnova, Almi, and Tillväxtverket.
  • Tax benefits: no withholding tax on interest abroad, tax-exempt dividends and capital gains on business shares, and EU funding programs.
  • Scandicorp helps you navigate these and connect with incubators and support networks.

Getting in Touch

To learn more or get started, email us at info@scandicorp.com or call +46 8 600 31 57.

Our team is ready to partner with you to bring your business vision to life in Sweden.

FAQs and Additional Resources

Starting a business in a new country brings many questions. Our FAQs cover key points to help you prepare for your venture in Sweden.

Frequently Asked Questions

What are the steps to register a company in Sweden?

  1. Choose a Business Structure: Pick the legal structure (AB, partnership, sole proprietorship).
  2. Prepare Required Documentation: Articles of association, registration forms, stakeholder IDs.
  3. Register with Bolagsverket: File documents to get a corporate ID number.
  4. Register for Taxes with Skatteverket: Register for VAT, payroll, and corporate taxes.
  5. Set Up a Bank Account: Deposit share capital (SEK 25,000 for AB).

What types of business structures are available?

  • Private Limited Company (AB): Most common, limited liability, minimum SEK 25,000 share capital.
  • Public Limited Company (AB publ): For larger businesses aiming to go public, SEK 500,000 minimum capital.
  • Sole Proprietorship: Individual-owned, personal liability, good for freelancers.
  • Partnerships (Handelsbolag, Kommanditbolag): Shared or limited liability among partners.
  • Branch Office (Filial): A foreign company’s registered branch in Sweden.

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

Typically two to three weeks, depending on documentation and permits. Online registration is usually faster.

Do I need a Swedish resident director?

Yes — at least 50% of the board must reside in the EEA. Scandicorp can provide a local director or representative if needed.

Are there industry-specific licenses?

Yes. Industries like financial services, healthcare, construction, food, and education may need special licenses before operating.

What’s the cheapest business structure for foreigners in Sweden?

The cheapest business structure for foreigners in Sweden is the sole trader (Enskild Firma), which costs SEK 1,100 to register. However, this option does not provide liability protection, unlike an Aktiebolag (AB), which requires SEK 25,000 in share capital.

How do I register a business in Sweden as a foreigner?

To register a business in Sweden as a foreigner, you must reserve your company name with Bolagsverket and submit required documents such as a notarized passport and, for an AB, Articles of Association. Registration is completed online via Verksamt.se, where you also apply for tax and company identification numbers.

Can I open a business bank account in Sweden without residency?

You can open a business bank account in Sweden without residency, but most traditional banks require an in-person visit and company documentation. Non-residents often use fintech options like Revolut Business for digital account setup.

For more information, visit our Corporate Fact Sheet.