A developed nation in the Nordic region is Sweden. It exists in Northern Europe and provides investors with a variety of chances. Its borders are shared by Finland and Norway in terms of area. The Swedish government provides a variety of options for foreign investors to conduct business there. A Swedish corporation may have 100% foreign ownership. Therefore, having a permanent director is not necessary. Since their information does not have to be public, shareholders and directors have more privacy. Sweden is ranked 14th in the world for business accessibility. Investors would therefore find it easy to register a corporation in Sweden. Benefits that are specific to companies with fewer than fifty employees are available. This includes government grants up to a 35% rate that aid in the purchase of equipment and other supplies. Office space leasing is eligible for a 20% subsidy, while the installation of certain types of machinery within office buildings is eligible for up to a 45% subsidy.
Sweden is a quick-moving nation when it comes to responding to the environment in the telecoms industry. An investor must go through the Swedish company registration process for all of the aforementioned reasons.
Qualifications for Swedish company registration
The following qualifications must be met in order to register a business in Sweden:
Needed minimum capital
In order to register a corporation in Sweden, an applicant must have a minimum of 25,000 Swedish kronor. This might be expressed in a comparable European currency. This would be equivalent to around 2,500 Euros if it were expressed in Euros. A public limited business must have at least 500,000 Swedish Kronor in its bank account.
The bare minimum of board members
In order to fulfill the requirements of the company, a limited company must have a certain minimum number of board members. A private limited business must have at least one member, while a public limited corporation must have three board members.
the mandate to designate an auditor
A private limited company is not required to employ an auditor. As a result, the choice to do so is up to the business. An auditor must be appointed by law by any public firm. All annual compliance and report filing requirements would be fulfilled by an auditor.
Swedish company registration process
In Sweden, the following procedure must be followed for company registration:
Incorporating the Company
An applicant seeking to form a corporation in Sweden must first register the company with the relevant government agency, called “Bolagsverket”. Additionally, the business must register with the relevant Swedish Tax Agency (Skatteverket).
Complete the application
The applicant would then have to complete the application form. A limited corporation may be incorporated in Sweden using application form 816e. The applicant would need to pay a charge of SEK 2200 to register the company.
Requirements for foreign residence
For a corporation to be registered in Sweden, at least 50% of the board of directors must be based in the EEA. The applicant may submit an application for the exemption if the aforementioned requirement still needs to be met.
Memorandum of association
The company’s shareholders formally drafted the memorandum of association or stiftelseurkund. This kind of document needs to be written in Swedish. The MOA must contain the following details:
- Information about the company’s founders.
- The company’s share price, if it is a public corporation.
- The company name.
- A complete listing of the company’s board of directors
- Data from the auditor.
Association bylaws
All of the company’s bylaws would be contained in and represented by the articles of association. The paperwork needed to incorporate a Swedish corporation must be written in Swedish and submitted to the registrar. The articles of association must contain the following details:
- Information about the company.
- Shares outstanding.
- The business’s operations.
Purchase company shares through a subscription
A public limited company must have at least SEK 500,000 and SEK 25,000 in capital to register as a corporation in Sweden. A public limited company must have at least SEK 500,000 and SEK 25,000 in capital to register as a corporation in Sweden. It’s possible that only subscribers or the company’s founders can join. This implies that the company’s founders would have to purchase stock.
Sign the document
The application would then need the applicant to sign the memorandum of association.
Add attachments to files online
The articles of association and memorandum of association, as well as all the other documents mentioned above, must be submitted electronically using application form number 816e. The official registrar of corporations is called “Bolagsverket”, and it makes decisions regarding applications.
The certificate of incorporation would be sent to the company once it had been registered.
Branch office
For a branch office, the following procedure is used (Company registration in Sweden):
- The foreign parent firm must take into account the decision to open a branch office.
- The board and the shareholders must both approve the resolution.
- The managing directors would be chosen if it were accepted.
- For the branch office, more essential executives would be appointed.
Requirements for Swedish company registration
Once the business has been established in Sweden, the following compliances are necessary:
Shareholders meeting
A yearly shareholders meeting is mandated for limited companies. This would determine the company’s requirements.
Board meeting
According to the relevant statute, a board meeting is not necessary.
Company tax
Limited Companies must pay a corporate tax of 21.4% to the appropriate taxing body. Partnerships are required to submit both personal and partnership tax returns. Branch offices would also need to submit tax returns.
