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Set Up a Joint Stock Company in Sweden

Set Up a Joint Stock Company in Sweden

Entrepreneurs set up a joint stock company in Sweden will choose this type of entity when their business goals are focused on opening a medium to large enterprise that will be able to sell its shares to the public. The joint stock company is also referred to as the public limited company.

The process of company registration in Sweden for this business form is the same as for the private limited company, with the important distinction that for the joint stock a higher capital will be needed for incorporation. Our team assists foreign investors who wish to open a joint stock company in Sweden and can provide both pre- and post-registration assistance.

The characteristics of the Swedish joint stock company

The private and the public limited companies are the two corporate business forms that can be incorporated in Sweden by local and foreign investors. Full foreign ownership is permitted for both of these business forms. In practice, the joint stock (or the public limited company) is used to open medium or large companies, as opposed to the private limited company which is suitable for small to medium companies.

The following characteristics are defining for the joint stock/the public limited company:

  • – It can sell its shares to the public;
  • – It requires a minimum capital of SEK 500,000 (about EUR 42,366);
  • – It has at least 3 board members;
  • – It needs to have both a Managing Director and a Board of Directors, as well as an auditor.

Needed steps to open a company in Sweden

The company formation steps for investors who set up a joint stock company in Sweden are the same as for the AB company. Our team summarizes these below:

  1. Select a company name: after choosing the business form, the process of company formation in Sweden continues with opting for a company that is available;
  2. Prepare the company’s documents: the Memorandum and Articles of Association, which are the constitutive documents;
  3. Deposit the minimum capital: the joint stock company’s share capital is deposited into a bank account;
  4. Register: all the company documents are submitted to the Swedish Companies Registration Office; the current estimated processing time is 5 working days, however, this can vary.

Upon registration, the applicant will also submit a fee for the registration of a public limited company. Presently, the fee is SEK 2,200 (about EUR 186).

Our team provides complete assistance to those who wish to open a joint stock company in Sweden. Upon request, we also offer services for the registration of other business forms, such as the branch.

Joint stock company taxation in Sweden

An important issue to consider for investors who set up a joint stock company in Sweden is the taxation regime for this business form. Below, our company formation experts highlight the most important taxes applicable to public and private companies in the country:

  • – The corporate income tax rate has a value of 20.6%;
  • – The standard VAT rate is 25%, and two reduced rates are available: 12% and 6%, with some types of goods and services being zero-rated; Swedish companies that are liable for this tax are required to register for VAT without having a prescribed threshold for this purpose;
  • – The employer (the company) pays social security contributions of 31.41% of the salary for most employers (lower contributions apply for older employees); there is no tax for payroll in Sweden.

Sweden has signed more than 100 double tax treaties with countries worldwide. A joint-stock company that is a subsidiary of a foreign legal entity can be subject to the EU parent-subsidiary directive. Our team can give you more information.

Joint stock companies observe the rules for the annual submission of their financial statements, as well as for the regular tax payments. Our accountants in Sweden offer personalized services to private and public companies and can help investors meet the filing and payment requirements.

Contact us if you want to set up a joint stock company in Sweden. Our local company formation experts will answer your questions and assist you throughout the registration process.