Company Formation and Registration
Determine the most suitable form for your Business
When you decide to do business in Sweden it is important to choose a company form or level of legal presence which suits the needs of your business, since this choice can have a significant impact on your taxes and accounting obligations. Aurenav can help you determine the corporate form that best suits your business and consequently avoid unnecessary expenses.
Different businesses work under different circumstances, and when considering the choice of corporate form for your Swedish venture the following factors are important to consider:
Permanent Establishment in Sweden
The first thing you will need to determine is if your Swedish enterprise can be regarded as a permanent establishment by the Swedish authorities. Handling your Swedish business through a non-permanently established representation office or agent can significantly reduce your Swedish tax burden, but a misjudgment regarding your tax status can cause unanticipated costs and tax penalties. You must also keep in mind that even non-permanently established companies often need to register with Swedish authorities and pay tax on their Swedish income.
Without permanent establishment in Sweden, your business will most likely take the form of a representation office.
We can help you determine if your Swedish venture will constitute a permanent establishment, and assist you in the necessary registrations. Through our umbrella employment services we can also offer alternative ways of providing services on the Swedish market.
Company Form
If your business in Sweden is to be organized as a permanent establishment you have a whole range of alternatives when it comes to choosing an appropriate company form. The most popular options are to either register a Swedish branch of your pre-existing company abroad, or to register a separate Swedish limited liability. The Swedish legislation does also allow for several different types of partnerships and individuals also have the option of registering as a sole trader.
The most common permanently estblished corporate forms are:
- Company Branch
- Limited liability company (called an "aktiebolag" or "AB" in Swedish)
Regardless of what type of company you are interested in Aurenav can provide you with advice, help you through the necessary registrations and assist you in ensuring full compliance with the Swedish legislation.
Register as an Employer
All companies that have employees in Sweden are required to register with the Swedish Tax Authority. Registration may also apply to companies with employees that are paying their social taxes to Sweden through a reciprocal tax treaty between Sweden and the nation in which they are working.
We can help your company register with the Swedish Tax Authority. We can also provide you with advice regarding the Swedish labor legislation, which in part, are applicable to legal entities registered both in Sweden and abroad.
Civic Registration of Your Employees
Anyone working in Sweden must have a Swedish Social Registration Number. This number, along with their registered place of residence in Sweden, is used by the tax authority to track income tax withholdings and social benefits. Employers are required to provide the employee name, social registration number, address, and tax table code to the tax authority. Each employee must have a tax card (Skattsedel) which states the tax table (Skattetabell) that is used to calculate income withholding tax. People that have worked in Sweden should already be familiar with this document since they are required to provide it to their employer.
To enroll a new employee in Sweden through one of our umbrella employment or payroll administration solutions, Aurenav requires approximately one to three business days.