Setting up a company in Sweden requires you to determine what sort of legal entity your company will be and to have an understanding of the corresponding tax implications – it is strongly suggested that you seek independent financial advice when considering your options. Read on to find out more.
Swedish nationals setting up a business
Founding a business as a Swedish national gives you several options on how to structure your company and determine its legal status.
- Sole trader
- Limited liability company
- Trading partnership
- Limited partnership
- Economic association
We would require you to form a Limited liability company if you are considering working on an assignment introduced by us in Sweden.
Before you begin your business operations, you will need to register for tax purposes. If you have a Swedish electronic ID this can be done simultaneously, while registering your company on this website: verksamt.se
Otherwise, you will have to fill out the following forms:
Tax Application for Foreign Entrepreneurs https://www.skatteverket.se/foretagochorganisationer/sjalvservice/blanketterbroschyrer/blanketter/info/4632.4.39f16f103821c58f680006712.html
Application for registration of tax return representative https://www.skatteverket.se/foretagochorganisationer/sjalvservice/blanketterbroschyrer/blanketter/info/4809b.4.6efe6285127ab4f1d2580003949.html
We will also require you to register for F-tax, this essentially means that you are individually responsible for tax and social security payments, rather than your employer, Vine Resources or the end Client if you are contracting. It also means that your customers will not have to deduct taxes on payments made to you. For further information regarding registration for the F-tax when self-employed, please see this fact sheet. https://www.skatteverket.se/download/18.15532c7b1442f256baead0b/1395152027203/432B12.pdf
Sole trader or corporation?
Foreign businesses established in Sweden can be placed into one of two different categories. They can register either as a sole trader (a natural person) or as a corporation (a legal person). Foreign legal persons have only limited liability, which means that you only pay income tax on profits that relate to a permanent establishment in Sweden - a fixed place of business, where either all or part of your operations are conducted. With this being the case you will have an unlimited liability. If you register as a foreign natural person, the same limited liability applies unless you have a personal home in Sweden. If this is the case, you will have an unlimited liability for income tax on all profits made in Sweden or abroad.
As a business operator in Sweden you are under no legal obligation to register your business name with the Swedish Companies Registration Office. However, it is highly advisable that you do so to prevent other businesses operating under your name. This can be done at https://www.verksamt.se/registrera-foretag_info
You should also consider taking out insurance against employers, public or professional indemnity claims which may be required either to safeguard yourself as a business operator or by any potential clients.How to set up a company when working in Sweden.
If you have a hiring pain and would like to discuss how we can help you, please book a 15 min intro call in my diary using this link: https://app.hubspot.com/meetings/david198/15-min-introduction