Establishment in Sweden
Sweden offers international companies great opportunities for business development. In Sweden you will find educated and innovative workforce, a strong business climate and a well developed digital business environment - to name a few. In this article we list a few things to consider when establishing a business in Sweden.
When foreign (non-Swedish) companies are entering the Swedish market, there are several issues to address. Firstly, the foreign company must consider how the establishment will proceed. There are several ways to proceed. For instance, by establishing a Swedish limited company, by establishing a branch, or maybe solely a registration as a foreign entrepreneur.
If a limited company is established it is important to initiate contacts with the foreign bank and have them reach out to the Swedish bank, due to the need of a bank account with the newly registered organization number in order to finalize the on-boarding of the new Swedish company. This process tends to be time consuming and is preferably initiated at an early stage. It is also important to address tax implication when setting up the Swedish company and take the full picture into consideration in terms of where the parent company is located.
The registration of a Branch is an easy way to establish a foreign company in Sweden, and no there is no requirement for share capital. When establishing a branch, the foreign company must also consider obligations of payroll taxes, VAT and company income tax to make sure that the branch is compliant with Swedish Tax Legislation.
Another option when there is no permanent establishment in Sweden, is to register the foreign company as a foreign entrepreneur. This is normally done when there is one or only a few employees in Sweden and their assignments in Sweden are not enabling them signatory rights on behalf of the foreign company. It is always important to be transparent towards the Swedish Tax Agency when filing such an application, to make sure that they are not of a different opinion in terms of the assignments of the employees in Sweden.
Do you need local help with the establishment in Sweden?
Greenstep's operating model has been developed from the basis of growth and international financial management processes, and supporting global companies is close to our hearts.
We can help companies of all sizes establish in Sweden by providing world-class financial management and HR services. As our partner, you will have access to 500 financial management experts familiar with the unique features of international companies' business and Swedish laws, tax, HR, and accounting practices. Contact Caroline Sölvin and we will discuss your specific needs further!