Company Formation in Sweden

Introduction

Sweden is one of the most developed and competitive economies in Northern Europe, offering access to the EU single market and a high level of business stability. The country provides foreign investors with a transparent legal system, developed infrastructure, and a favourable environment for international business and innovative projects.

COREDO has been operating since 2016 and provides a full range of company formation services in Sweden for foreign entrepreneurs — from selecting the appropriate legal form to tax registration with Skatteverket.

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Advantages of Company Formation in Sweden

Sweden offers favourable conditions for business activity. Transparency and openness of legislation create a predictable legal environment. The company registration procedure is straightforward and can be completed through the electronic portal Verksamt.se. Government support for innovative projects and a well-developed startup ecosystem in Stockholm attract entrepreneurs from various countries. There are no special restrictions for foreign investors, and the high quality of life and economic stability create comfortable conditions for long-term business operations.

Types of Companies in Sweden

Several legal forms are available for foreign entrepreneurs in Sweden.

Privat Aktiebolag (AB)

a private limited liability company, the most common form for foreign investors. The minimum share capital is SEK 25,000. The company can be established by a single individual or legal entity of any nationality. Since 1 January 2020, the minimum capital was reduced from SEK 50,000 to SEK 25,000 by decision of the Swedish Parliament.

Publikt Aktiebolag

a public limited company with a minimum share capital of SEK 500,000. It requires at least one shareholder and is suitable for large-scale projects involving external investment.

Handelsbolag (HB)

a general partnership with unlimited liability for partners. A minimum of two partners is required, who may be residents or non-residents of Sweden. There are no share capital requirements.

Kommanditbolag (KB)

a limited partnership with mixed liability. A minimum of two partners is required, one of whom bears unlimited liability while the other is liable only up to the amount of their contribution.

Enskild firma

a sole proprietorship. Well suited for beginning entrepreneurs. It is not a separate legal entity, and income is subject to personal income tax.

Ekonomisk förening

an economic association, similar to a cooperative. Registration requires a minimum of three individuals or legal entities. This form is suitable for joint economic activity where members pool resources to achieve a common economic objective.

Registration Procedure

Company formation in Sweden involves the following key steps:

Preparation of incorporation documents

drafting the articles of association (Bolagsordning) and the memorandum of association (Stiftelseurkund), specifying the capital amount, shares, and authority.

01

Payment of share capital

deposit into an account at a Swedish or EEA bank. The bank issues a certificate (bankintyg) confirming the payment.

02

Filing with Bolagsverket

registration with the Swedish Companies Registration Office. The registration fee is SEK 1,900. The application can be submitted online through the Verksamt.se portal.

03

Registration with Skatteverket

registration with the Swedish Tax Agency to obtain a tax identification number and VAT registration.

04

Registration of beneficial owners

information on ultimate beneficial owners must be submitted to Bolagsverket within four weeks of company registration.

05

Required Documents

The following documents are required for company registration:

  • articles of association (Bolagsordning);
  • memorandum of association (Stiftelseurkund);
  • passports or identity documents of all founders;
  • a bank certificate confirming payment of share capital (bankintyg);
  • proof of a registered office in Sweden.

Non-residents require an officially registered Swedish address; however, a mandatory physical office is not required.

Registration Timelines

With a complete set of documents, registration with Bolagsverket takes approximately three weeks. Including preparatory stages — opening a bank account, document preparation, and translation — the overall process may take from four to six weeks. COREDO coordinates all stages and helps minimise delays.

Taxation

The corporate tax rate in Sweden is 20.6% — one of the most competitive rates in Europe, below the OECD average (~23.8%). The standard VAT rate (moms) is 25%, the reduced rate of 12% applies to food products and hotel services, and the 6% rate applies to books, newspapers, and cultural events. Mandatory VAT registration is required when annual turnover exceeds SEK 120,000 (the threshold was increased from SEK 80,000 on 1 January 2025).

Annual Reporting and Obligations

After company registration in Sweden, entrepreneurs must comply with a number of regular requirements. An Aktiebolag must file an annual report (årsredovisning) with Bolagsverket no later than seven months after the end of the financial year. The report includes a balance sheet, income statement, notes, and an auditor’s report (for companies exceeding the established thresholds). Companies with turnover exceeding SEK 3,000,000 or more than three employees are required to undergo an audit. The tax return is filed with Skatteverket, and deadlines depend on the chosen financial year. Employers pay social contributions (arbetsgivaravgifter) at a rate of 31.42% of employee salaries, covering pension, health insurance, and other social programmes. Companies are also required to maintain a shareholder register and promptly notify Bolagsverket of any changes in management or registered office address.

Service Costs

The cost of company formation in Sweden depends on the chosen legal form, capital structure, and scope of accompanying services. For a personalised estimate, please contact our specialists. COREDO also offers accompanying services: opening a bank account, legal support, and tax registration.

COREDO Methodology

The company formation process in Sweden with COREDO comprises four main stages. At the first stage, our specialists conduct a consultation: analysing your business objectives, recommending the optimal legal form, and preparing an action plan. At the second stage, we prepare all necessary documentation — articles of association, memorandum of association, translations — and arrange the opening of a bank account. The third stage involves filing documents with Bolagsverket and Skatteverket. At the final stage, you receive a fully registered company with a tax identification number, ready to commence operations.

Comparison of Legal Forms

Form Min. Capital Founders Liability Suitable For
Privat Aktiebolag (AB) SEK 25,000 from 1 Limited Small and medium business
Publikt Aktiebolag SEK 500,000 from 1 Limited Large projects, IPO
Handelsbolag (HB) None from 2 Unlimited Partnerships
Kommanditbolag (KB) None from 2 Mixed Investment structures
Enskild firma None 1 Unlimited Startups, sole proprietors
Ekonomisk förening None from 3 Limited Cooperatives

Jurisdiction Features

Sweden does not impose restrictions on the nationality of founders — any individual or legal entity may register a company. However, persons intending to serve as directors must obtain a work permit through the Swedish National Register. A physical office is not mandatory, but the company must have a registered office in Sweden. Stockholm is recognised as one of the leading European centres for launching startups in the digital technology sector. Sweden has an extensive network of double taxation agreements with more than 80 countries, creating favourable conditions for international holding structures. The government agency Business Sweden assists foreign investors by providing consultations on entering the Swedish market and navigating the local business and regulatory environment.

Our Experts

Pavel Kos
Pavel Kos
Head of Legal. Pavel has been with COREDO since June 2017 and possesses extensive experience in corporate law and company formation across European jurisdictions. He coordinates legal support for business registration projects in Sweden, including selection of the legal form, document preparation, and interaction with Swedish registration authorities.

Frequently Asked Questions

Can I register a company in Sweden without being physically present?

Yes, physical presence is not required. Documents can be submitted through the electronic portal Verksamt.se or through a representative acting under a power of attorney. The COREDO team organises the entire process remotely, including opening a bank account and liaising with Bolagsverket.

Which type of company is best suited for small business in Sweden?

For small and medium-sized businesses, the optimal choice is a Privat Aktiebolag (AB) with a minimum share capital of SEK 25,000. This form provides limited liability and is the most common among foreign entrepreneurs.

What taxes does a company pay in Sweden?

The corporate tax rate is 20.6% of profits. The standard VAT rate is 25%. Sweden does not levy a separate municipal corporate tax, making the overall tax burden one of the most predictable in the EU.

How long does it take to register a company in Sweden?

Registration with Bolagsverket takes approximately three weeks with a complete set of documents. Including document preparation and bank account opening, the overall process takes from four to six weeks.

Case Study: Registration of an IT Company in Sweden

An entrepreneur from the CIS region planned to enter the Scandinavian digital services market. Stockholm was chosen as the base due to its well-developed startup ecosystem and access to Scandinavian and European clients. COREDO specialists helped determine the optimal form — Privat Aktiebolag (AB) with a minimum capital of SEK 25,000, which reduced the entry threshold. The team prepared the incorporation documents, arranged the opening of an account at a Swedish bank, filed the application with Bolagsverket, and completed registration within four weeks. After registration with Skatteverket, the client began providing services to Swedish and European customers.

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COREDO specialists have been working since 2016, helping foreign entrepreneurs register companies in Sweden and other EU countries. We handle all organisational and legal matters — from selecting the legal form to obtaining a tax identification number.

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