How easy is to open a business in Sweden as a foreigner? Our team discusses the main requirements for foreign investors, along with the pros of setting up a business in this Nordic country. For detailed information on the company registration steps, please check out this article.
| Quick Facts | |
|---|---|
| Entry requirements for EEA citizens | Visa free entry. Registration is mandatory, according to the purpose of stay, for those remaining in the country for more than 3 months. |
| Entry requirements for non-EEA citizens | Visa (in some cases) and residence permit, according to proven motive to stay in the country. |
| Mandatory residency required to open a company in Sweden as a foreigner | No |
| Residency by investment scheme available (Yes/No) | Not a direct program |
| Minimum investment amount for residency by investment (if applicable) | Not applicable |
| Relocation with family members for foreign investor residence permit holders | Subject to separate applications by the concerned family members |
| Types of companies available to foreign investors | – limited company; – branch; – partnership; – sole proprietorship. |
| Full foreign ownership permitted (Yes/No) | Yes |
| Operation costs in Sweden | Costs to open a company in Swden (with a minimum start-up capital), with workforce, the ongoing corporate taxes etc. |
| Payroll costs in Sweden | Employer social security contributions (varying according to the age of the employee) and sector-specific wages |
| Accounting costs (approx.) | Can start at SEK530 (about 50 euros) for basic bookkeeping packages |
| Employment costs (minimum salary) | Sweden does not impose a minimum wage. |
| Office rental costs (approx.) | Depending on location, however, rental prices for private offices in Stockholm often start at over EUR 600 per square meter. |
| Number of companies incorporated each year (approx.) | Depending on the region. In 2023, there were 19,916 newly started companies in Stockholm County. |
| Regulatory environment makes it easy to open a business in Sweden as a foreigner (Yes/No) | Yes |
Table of Contents
Starting a business in Sweden as a foreigner
Sweden welcomes foreign direct investments and offers a straightforward company registration process for the LLC and for other business forms.
Setting up a business in Sweden as a foreigner is perceived as simple and it offers important advantages, some of which are summarized below by our team:
- You do not need to be a Swedish language speaker to start a business in this country. English is widely spoken and navigating the business landscape is therefore accessible to English-speaking investors from around the world;
- While you will need a temporary residence permit to stay in Sweden for longer periods related to running your business, there are no restrictions on nationality for investors, meaning that you can start a business regardless of your current citizenship;
- You can prepare part of the documents required for doing business in Sweden as a foreigner (such as the ones for the F-tax) from abroad. Our team can give you more details about these mandatory submissions;
- If you already have a foreign company and want to do business in Sweden, you can also open a branch.
The infographic below summarizes some of the conditions for foreign investors in Sweden:
Set up requirements for running a Swedish business as a foreigner
The decision to open a business in Sweden as a foreigner is an important one. Even if the country has a welcoming business environment, you will still have to plan before you set up the business. Here are some tips before you start the set-up phase:
- Research the market in Sweden for the business field you are interested in;
- Check if you need a permit to run a business in Sweden as a foreigner. This is the mandatory industry-specific permit for the business and it applies to various trades. Our team who can help you open a business in Sweden can also help you apply for the special permits and licenses;
- Consider protecting your brand identity through trademark registration in Sweden;
- Have a sound business plan and prepare to hire staff in Sweden as needed.
We invite you to watch a short and comprehensive video about company creation for foreigners:
Main costs related to doing business in Sweden as a foreigner
Part of the planning advisable to all foreign investors who want to open a business in the Nordic countries includes having a well-thought-out budget for starting up. Some of the main costs you will encounter when you open a business in Sweden as a foreigner include:
- The minimum share capital for your chosen business form. In most cases, this is a limited company and the required share capital is SEK 25,000 (or about EUR2,282/USD2,670);
- Certain registration costs: examples include the SEK 250 beneficial ownership registration fee;
- Ongoing costs, such as renting an office space. These costs can vary significantly and can start at more than SEK 1,000 per square meter per month;
- The costs for hiring employees and payroll in Sweden. The average monthly salary varies according to occupation, and can be SEK 43,000 or about EUR 3,930 (median range) for a professional nurse, according to the data for 2024 from Statistics Sweden.
The list above is not exhaustive, and other one-time and ongoing costs can be expected by investors who set up a business in Swedenas a foreigner.
Contact us if you are ready to start your entrepreneurship journey. Our experienced team can help you start a company in Sweden.