Types of Swedish Companies

Investors have the option of opening several types of Swedish companies, each business structure having specific characteristics. Our team can assist you with company formation in Sweden irrespective of the type of business you choose to incorporate.

What are the main types of companies in Sweden?

When investors open a company in Sweden, they select between several available business structures:

1. Limited company: formed by at least one investor, it is one of the most commonly chosen business forms by both local and foreign investors;
2. Limited partnership: formed by at least two individuals or companies, one of the partners is fully liable;
3. Trading partnership: also incorporated by at least 2 individuals or companies; both partners are liable;
4. Sole trader: the simplest business form, and the one with unlimited liability; it is formed by only one person;
5. Economic association: incorporated by at least 3 companies or individuals; the founders are not personally liable.

Please read below a brief description of the types of companies in Sweden:

How do I choose a suitable business form?

The selection process should include a preliminary comparison of the available business forms against your current business goals. Some issues that are worth considering during this decision process are listed below by our team:

• -The number of company founders: will the business have a single shareholder, or will more individuals be involved?
• -The level of financial responsibility you are comfortable with: a sole trader has the highest level of liability, compared to other business forms. Are you willing to be fully responsible for the business?
• -The available capital: a minimum share capital of SEK 25,000 is required for the limited liability company in Sweden, not including other costs for registration, virtual office (if using), or others.

Are there any limitations for foreign investors?

Foreign investors are not constrained by nationality requirements when it comes to opening one of the types of companies in Sweden.

What business form should I choose if I want to expand to Sweden?

The branch is the extension of a foreign-based company. It is not a separate legal entity, and it engages in the same types of activities/it operates in the same industry as the parent company.

The subsidiary is a Swedish-based legal entity, a limited liability company, in which a foreign-based corporation holds the majority of shares, effectively controlling it.

Both options have advantages, and the choice is determined by the parent company’s business expansion goals and other criteria.

How much does it cost to open a company in Sweden?

Our prices and packages for company formation in Sweden range from SEK 35,000 to SEK 50,000 or more in complex cases.

The prices differ based on:

• -Company structure and organization (single shareholder vs. multi-shareholder or holding);
• -The overall business scope (startup with minimum needs vs. large companies with requirements for special permits and licenses issued by the Swedish authorities, etc.).

How fast can I open a business in Sweden?

When working with our team, the complete process should last between 1 and 3 weeks, with complete guidance from our experts.

Can I change the chosen business form?

Yes. You have the option to change your business form, for example, from a sole trade into a limited liability company. However, to do so, you will have to:

• -Register a new legal entity (the Swedish LLC);
• -Decide how you will handle the transition from your current business form;
• -Choose a new business name or check if you should or can continue with the existing one;
• -Make sure that you comply with the ongoing requirements that are in place for your new business form, such as correct accounting for a limited liability company.

Businessmen who need company formation and legal services in Finland, can receive help from our partners – LawyersFinland.com.

Contact us for more information on the types of companies in Sweden and for more details about our incorporation services.