Registering a company in Sweden is not as simple and straightforward as in many other jurisdictions. There are several obligatory steps you need to take before starting a business in Sweden. In this article we will walk you through the major steps, one by one.
The process of company registration in Sweden
To start a business in Sweden as a foreigner, you need to:
- Maintain a minimum share capital.
- Establish a board of directors.
- Designate a registered office address.
- Open a corporate bank account.
- Deposit the share capital into the corporate bank account.
- Submit the required documents to the Swedish Companies Registration Office (Bolagsverket).
- Maintain compliant accounting practices in accordance with local corporate tax regulations.
- Manage payroll responsibilities.
Share capital and shareholders
To register a Swedish LLC, you need a minimum share capital of SEK 25,000. Shareholders appoint and dismiss Directors. Ultimate power within the company is with the shareholder(s) and the Annual General Meeting of Shareholders.
Directors
To establish a company in Sweden, you must have at least one Director who also serves as a member of the board. If there are less than three Directors, a Deputy Director must be appointed. This means that an LLC must have at least two Directors. Directors of a company in Sweden can be of any nationality and reside anywhere in the world, but at least half of the Directors must be present in a country within the European Economic Area (EEA).
Having a Managing Director or CEO is optional for a company in Sweden, but if appointed, this individual must be a resident of a country within the EEA. Nordic GEM can provide experienced Directors resident in Sweden. If none of the Directors are resident in Sweden, a Swedish resident Process Agent is required.
Registered office address
For starting a business in Sweden, it is mandatory to have a legal address for your LLC. Nordic GEM can provide you with a registered office address where your official letters will be delivered and scanned for you.
Bank account
Setting up a bank account with a traditional Swedish bank might require local expertise. If your company encounters challenges meeting these requirements, you have the option to purchase an existing company with no activity, often referred to as a “shelf company.” You can also open a bank account with a challenger bank like Revolut or WorldFirst to facilitate your business operations. Nordic GEM can assist you with opening a corporate account.
Depositing the share capital and filing the documents and company formation
Before filing the documents with the Swedish Companies Registration Office, you must deposit the share capital into the corporate bank account.
If you did everything right at the previous steps, once this step is completed and all necessary documents are filed, all you need to do now is wait. The processing time is usually about 10 working days from filing the incorporation documents.
We also offer a shelf company solution, where you can purchase an already registered company with no prior activity. This option allows for a quicker setup since everything necessary for the business has already been established and the company is ready to start operating immediately.
Accounting
After setting up a company in Sweden, ongoing accounting and annual filing of financial statements is mandatory. Providing these services from outside Sweden is not practical and can be very challenging indeed. Nordic GEM can handle your accounting for you.
Payroll
If you are going to hire a team in Sweden, you can count on Nordic GEM to help you with the payroll. We will register your local or foreign entity as an employer, executing a routine of monthly payroll runs in compliance with local laws. We provide a multilingual support and payroll administration tailored to your business needs.
Your partner for compliant company formation in Sweden
Contact Nordic GEM to learn how we can support your company in establishing your LLC in Sweden and turning your business goals into reality.
