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Company set up in Sweden

Company Registration in Sweden

The cold weather of this huge and picturesque Scandinavian state is no true reflection of its rapidly heating up the Sweden business opportunities scene! Just like every other part of the country, the market in Sweden is seeing rapid growth with a pristine record. Products with the ‘Made in Sweden’ label are some of the most popular worldwide.

With plentiful natural resources including copper, timber, iron and more; the industries in Sweden are able to function independently. Sweden’s top industries are material sciences, manufacturing, life sciences and automotive production.

Foreign investors need to grab the opportunity for company formation in Sweden now and take advantage of the stable economy.

Another area where Sweden has been excelling in is expansion into green technologies and sustainable production as well as eco-friendly energy resources. As usual, Sweden is at the forefront of cutting-edge development for the science of the future!

A high-skills workforce and top-notch infrastructure make Sweden one of the most lucrative countries to set up a business in. When it’s quality in work and production investors are looking for, company set up in Sweden is their best bet!

Forms Of Companies In Sweden
  • AB – “privataktiebolag” –Private Limited Liability Company
  • AB– “publiktaktiebolag” –Public Limited Liability Company
  • HB – “handelsbolag” – General Partnership
  • KB – “komanditbolag” – Limited Partnership
  • “Enskildfirma” – Sole Proprietorship
  • “Filial” – Branch
Private and public AB, the most popular common company forms in Sweden

Most foreign entrepreneurs in Sweden choose to establish a private limited company (Privat Aktiebolag – AB). A private AB can be established with one or more shareholders and requires a minimum share capital of SEK 25,000.

A Swedish private AB must have at least one ordinary board member and one deputy board member, unless the board consists of at least two ordinary board members. At least 50% of the ordinary board members and deputy board members must be residents of the European Economic Area (EEA). If this requirement is not met, an exemption permit from the Swedish Companies Registration Office (Bolagsverket) may be required.

A Swedish public limited company (Publikt Aktiebolag – AB) may offer shares to the public and can be listed on a stock exchange. The minimum share capital requirement for a public AB is SEK 500,000. A public AB must have at least three board members, and at least 50% of the board members must be EEA residents.

Company registration fees in Sweden will be determined by the: form of company, number of shareholders, choice of banking, residency of shareholders and directors and business activity. If you wish to find out the exact process, requirements and fees for your specific case, complete this simple online form and we’ll send you an offer within 24 h.

If you are choosing between a few countries in Europe and you are not sure where to incorporate, have a look at our tips how to make the right choice, or talk to us today for free.

Fundamentals Of A Limited Liability Company

Corporate Tax in Sweden

VAT in Sweden

20.6%

25%

Fundamentals of limited liability companies in Sweden
Limited liability companyAktiebolag - A.B.
Minimum Share capital

25 000 SEK (approx. 2260 EUR)

Registered office requiredYes
Physical office requiredNo
Min. number of Shareholders1
Min. number of Directors2
Local Director requiredYes (Directors are board members)
Other requirements1 board members and 1 deputy or more members. 50% of them must be EEA residents
Bank signatory must travelYes, but it is not mandatory to have bank account in Sweden. It can be opened in any EU country.
Timescale for company formation10 days
Timescale for bank account opening7 day
Timescale for obtaining VAT number14 days
Statutory audit requirementsYes
Shelf companies availableYes
How can I set up my company in Sweden?

The process of setting up a company in Sweden typically takes around 4 weeks.  For international clients we propose online account opened remotely with EMI. If you also choose to open a hish-street bank account in the Sweden, you must have local director. The account is necessary from the start, as the share capital must be deposited before the bank issues a share capital certificate which is one of the key documents needed for business registration.

The bank account may be opened in another EU country remotely, with online bank. For those looking for a faster route, purchasing a shelf company can shorten the timeline to about a week, since the process avoids bank account opening. In such case you will pay share capital to licensed professional in Sweden who will return the payment to business account once the company has been transfered and business account opened.

With CompyCo, you benefit from guidance and coordination with trusted licensed local professionals who handle all requirements on your behalf. Depending on your business needs, we can connect you with experts assisting in:

  • Choosing the right company type and registering it with the Swedish Companies Registration Office (Bolagsverket).

  • Coordinating the opening of a bank account or exploring online/remote banking solutions where possible.

  • Advising on and arranging the purchase of a shelf company if you prefer the fastest option.

  • Obtaining a taxpayer ID and VAT number (MOMS-nummer) from the Swedish Tax Office (Skatteverket).

  • local directorship services and deputy manager services provided by Swedish lawyer.
  • Registering your company as an employer if you plan to hire staff.

  • providing accountancy services.

Through our network of specialists, we simplify the Swedish company formation process—whether you prefer the standard registration route or a faster alternative—so you can focus on your business with confidence.

company set up in sweden
germany pic

Requirements for Non-Residents in Sweden

Foreign entrepreneurs can register a company in Sweden remotely in many cases. However, Swedish company law includes several requirements that non-resident founders should understand before starting the incorporation process.

At least half of the ordinary board members must reside within the European Economic Area (EEA). The same residency requirement applies separately to deputy board members. Where the proposed management structure does not meet these requirements, an exemption may be requested from the Swedish Companies Registration Office (Bolagsverket).

CompyCo can coordinate licensed local professionals who may act as EEA resident board members where an appropriate local solution is required, helping foreign entrepreneurs satisfy Swedish incorporation requirements.

If the company does not have an authorised representative resident in Sweden, it must also appoint a registered contact person who is authorised to receive official correspondence and legal documents on behalf of the company. CompyCo can coordinate this service through its network of licensed local professionals where required.

Foreign directors, shareholders or beneficial owners who do not have a Swedish personal identity number may also require a Swedish coordination number, depending on their role and the registrations being completed. Coordination numbers are issued by the Swedish Tax Agency (Skatteverket) and are commonly required when dealing with Swedish authorities.

For many non-resident entrepreneurs, purchasing a Swedish shelf company can be the most practical route into the Swedish market. Because the company has already been incorporated and its share capital has already been paid, there is normally no need to open a temporary bank account solely for the purpose of depositing the share capital before incorporation. This often makes the initial company registration process significantly faster and more straightforward for foreign founders.

After the ownership transfer, the company can be updated with the new shareholders, directors, beneficial owners, company name and business activities before proceeding with the remaining registrations.

Purchasing a shelf company does not automatically include an operational Swedish business bank account, F-tax registration, VAT registration or employer registration. These registrations are completed separately according to the company’s planned activities. However, for many international entrepreneurs, a shelf company provides one of the most efficient ways to register a company in Sweden and begin trading sooner.

Bank Account Opening

Sweden’s banking system is known for its efficiency and speed, with most banks operating almost entirely cashless. This makes maintaining an account—often with online access—much easier than in countries where traditional paperwork is still the norm.

For non-residents, opening a corporate bank account for a Swedish company can often be a major challenge. We help overcome this through our network of banking partners that onboard a wide range of client profiles.

Each financial institution in Sweden applies its own policies and requirements, which may depend on your business activity or country of residence and this is why it takes a lot of time for non-residents to target specific bank which would onboard them.

Here are some general documents most banks expect, such as:

  • A valid passport (with visa, if required)

  • Financial background documentation

  • A Swedish address or local business contact details

At CompyCo, we coordinate this process by connecting you with trusted banking partners and guiding you through the necessary steps. With our support, you can be confident that your account setup will be handled efficiently, whether locally or remotely, depending on the bank’s procedures.

Sweden company formation cost will be different based on your choice of bank.

Need more information to open a bank account in Sweden remotely? Head over here.

Accounting & Taxation

Here are some accounting and taxation obligations to consider when operating a company in Sweden:

  • The financial year in Sweden is usually the calendar year, although companies may choose a different fiscal year upon approval.
  • Taxable income generally includes trading profits, investment income, and capital gains from the sale of assets.
  • All companies are required to maintain proper accounting records in accordance with Swedish accounting regulations.
  • The corporate income tax rate in Sweden is 20.6% in 2026. (Source: PWC)
  • Sweden offers a special tax relief regime for qualified foreign experts, researchers, scientists, and key executives.
  • Companies registered for VAT must submit VAT returns monthly, quarterly, or annually depending on turnover and business activity.
  • Employers are generally required to submit monthly PAYE and payroll tax declarations to the Swedish Tax Agency (Skatteverket).
  • Every company must file an annual report with the Swedish Companies Registration Office (Bolagsverket), normally within 7 months after the end of the financial year, even if the company had no activity during the year. (Source: Verksamt.se
  • Late submission of tax returns, VAT declarations, payroll reports, or annual reports may result in penalties and interest charges imposed by the Swedish authorities. (Source: PWC
Company Set Up In Poland
How can you employ staff in Sweden?

Setting up a company in a country you’re not familiar with can be challenging—especially when local employment laws, workplace expectations, and even the language differ from what you know. That’s why working with an experienced HR partner is essential when hiring in Sweden.

Through CompyCo’s trusted network of HR and legal professionals, we provide tailored recruitment and employment solutions that combine Swedish business culture with your company’s needs. Our support covers every stage of the employment process, including:

  • Drafting compliant employment agreements

  • Recruiting skilled talent for your team

  • Ensuring your business meets local labor regulations

  • Managing payroll and related HR functions

For foreign companies that only need to employ one person in Sweden to work remotely, we can often avoid the cost of setting up a local entity. Instead, we help register your non-resident company as an employer—saving you both time and money.

Sweden also offers one of the world’s happiest and most motivated workforces, making it an excellent place to build your team. With CompyCo’s guidance and connections, you’ll have access to professionals who are ready to go the extra mile to support your company’s success.

Have any questions? Take a look at our HR services page for more information about our International HR services!

Why Choose Sweden for Business?

Sweden is one of Europe’s most innovative and business-friendly economies. The country offers a stable legal framework, excellent digital infrastructure, a highly skilled workforce, and strong international credibility. A Swedish limited company (AB) is a respected corporate structure that can enhance trust with customers, suppliers, and business partners throughout Europe.

Some of the main advantages of doing business in Sweden include:

  • Access to the Nordic and EU markets
  • Strong international business reputation
  • Stable and transparent legal environment
  • Highly digitalised government and business systems
  • Skilled English-speaking workforce
  • Attractive jurisdiction for technology and international businesses
  • Well-developed banking and financial sector

Frequently Asked Questions About Company Registration in Sweden

Yes. Non-residents can register a company in
Sweden. Additional compliance, identification, and banking requirements may
apply depending on the shareholder structure and country of residence.

The most common company type for foreign
entrepreneurs is a private limited company (Aktiebolag or AB), which provides
limited liability protection and is widely accepted by banks, suppliers, and
customers.

A private limited company (AB) in Sweden
requires a minimum share capital of SEK 25,000.

Yes. It is possible to register a company in Sweden remotely. However, the process may take longer than purchasing an existing shelf company, as a business bank account is typically required before incorporation and the share capital must be deposited prior to registration.

Yes. Purchasing a Swedish shelf company
is faster because the company has already been registered. Also, instead of going
through onboarding with the bank to pay the share capital before incorporation,
the share capital is paid to the licensed agent in Sweden and transferred to
the company’s business account after the ownership transfer and bank account
opening are completed. 

Not necessarily. Any EEA country residents will satisfy the requirement for structure. Where these requirements are not met, an exemption may be required.

In practice, Swedish traditional banks want to see Swedish resident director, but in case where traditional bank is not needed, we will advise about suitable online banking options and in that case local director is not needed.

Where appropriate, CompyCo can coordinate introductions to licensed local professionals who  provide such services independently.

No. Swedish law does not generally require a Swedish business bank account. Many international entrepreneurs operate successfully using online business banking solutions that support SEK and international payments. However, some businesses may still prefer a traditional Swedish bank depending on their industry, customers, or operational requirements.

Company registration in Sweden typically takes between 2 and 6 weeks, depending on the company structure, banking solution selected, and the completeness of the application documents.

CompyCo coordinates company registration in
Sweden together with registered office, accounting, tax, compliance, and
banking solutions through a network of local professionals and licensed service
providers.

Looking to expand elsewhere in Europe? Explore company registration solutions in Denmark, Norway, Estonia, Finland or Netherlands.

However, if you are choosing between a few countries in Europe and you are not sure where to incorporate, have a look at our tips how to make the right choice, or talk to us today for free.

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