How to start a business in Sweden?
How to start a business in Sweden? Can it be done easily? Yes, it can. For those seeking to expand their business in Sweden, the right partner can determine how smooth starting up and establishing will be. Whether you are considering opening a branch in Sweden or whether you already have an existing operation, Accountor can assist you. We have helped foreign companies to find their way around Swedish regulations for many years. We can help you with everything from setting up a company, pay salaries, to make closings and consolidations. Accountor is a full service accounting firm that makes it possible to quickly start up and run an efficient business in Sweden.
International companies looking to start a business in Sweden
At Accountor we help international companies to start and to set up and create companies or branches/affiliates in Sweden. We can also help you with a Nordic solution.
The consultants working at Accountor are multilingual, can provide advice on an appropriate legal entity, act Tax Agents and also manage all contacts with government agencies, accountants and lawyers on location in Sweden. For tax issues Accountor has additional tax consultants and specialists with a long experience with the Swedish Tax Agency.
We work with international accounting, conversion to / from IFRS and U.S. GAAP and we are specialists in affiliates.
We can help with bank contacts in Sweden, set up reporting and explain the Swedish system for you. For those who manage accounting outside the country, we can help set up rules and procedures for reporting and carry out controls so everything is correct.
HOW CAN WE HELP YOU START A BUSINESS IN SWEDEN?
- Advising on most suitable legal form, branch or subsidiary
- Supply a shelf company
- Filing registration with the Swedish Company Registration Agency
- Investigation of company's tax status and tax liability in Sweden regarding VAT and Employer contribution
- Filing registration with the Swedish Tax Agency
- Providing information on obligations following registration in Sweden such as annual filings
- Provide a transfer to our experts in accounting and pay roll
Online tax return representatives
All businesses in Sweden must file VAT returns and payroll taxes monthly to the Swedish Tax Authorities. This can be done electronically by a Swedish tax return representative. We can take care of this for you as a part of our full financial service solution (including payroll, accounting, annual reports and corporate income tax returns).
Of course you can choose to do the book keeping in-house, and let Accountor handle the areas that have to follow Swedish GAP; VAT returns, annual reporting and corporate income tax returns. Whichever combination you choose Accountor offer well established routines and deep knowledge that make your business administration more effective.
Swedish regulations and taxes – what do you need to know?
There are no rules without exceptions - but here is a comprehensive summary of what you should keep in mind when establishing your business in Sweden. How the rules will apply, depends on things like company size, if the initial establishment is within the EU or the bilateral agreements between Sweden and the initial establishment.
1. The right legal form when establishing
Depending on your company’s unique circumstances and your intentions with the new establishment, it is important that you choose the right legal form for your business in Sweden. Foreign companies seeking to expand their business here, basically have two options; a subsidiary or a branch. The main difference between a subsidiary and a branch is that the subsidiary is a separate legal entity and a tax subject, while the branch is a part of your business at home. The fiscal consequence is that the branch’s performance is included in the foreign company’s accumulated profit while a subsidiary results will not be part of the foreign company’s results
A Swedish bransch
A branch is a local part of your business at home and does not have its own share capital. The branch constitutes a permanent establishment in Sweden and the foreign company is taxable in Sweden for the income attributable to the branch – the tax is 22%.
A Swedish subsidiary
By forming a new limited company in Sweden and having your company in the home country own all the shares, you have established a subsidiary – and your company in the home country is the parent company. The subsidiary is usually formed through the purchase of a stock company, with a minimum share capital of SEK 50 000. The new company is then registered with the tax authorities for operations conducted in Sweden. A Swedish subsidiary is liable to pay taxes in Sweden for their income – with a corporate tax of 22%. The Company is required to maintain ongoing accounting, submit annual filings to the Companies Registration Agency, submit VAT returns and employer’s declarations monthly and submit an income tax return once a year.
Establishment of a UK business in Sweden
Our colleagues have contributed their knowledge when The British Embassy, BSCC and Invest Stockholm have produced a guide - Contributing to the Establishment Guide for UK business in Sweden.
