Company Registration in Sweden - Business Starting & Setup

Sweden-Private
Sweden-Public

General Information

The Kingdom of Sweden is located in Northern Europe. The total area of the country is 450,295 sq. km, with a population of 9,103,788 (2011).
The capital of Sweden is Stockholm, which is also the largest city of the country.
The national currency is Swedish krona (SEK) which equals approximately 0.14 USD and 0.12 EUR.

The climate of Sweden is temperate in south with cold, cloudy winters and cool, partly cloudy summers. In north of the country the climate is subarctic. The average maximum temperature in July is +25°C; the average minimum temperature in January is -22°C.

The time difference from Moscow is -2 hours; the international dialing code – 46.

The official language of the country is Swedish. The Swedish population includes the following ethnic groups: Swedes with Finnish and Sami minorities; and foreign-born or first-generation immigrants: Finns, Yugoslavs, Danes, Norwegians, Greeks, Turks. The literacy level of population is 99 %.

Economics

Sweden is one of the most progressive countries in the world. The economy of Sweden is heavily oriented toward exporting of goods. Nowadays the most essential features of Swedish economy are: a modern distribution system, excellent internal and external communications, and a highly skilled labor force. Due to the stability of economy Sweden has achieved a high standard of living.

Timber, hydropower, and iron ore constitute the resource base of an economy the Kingdom of Sweden.

Agriculture accounts for 1% of GDP. The vast majority of industrial output is provided by
the privately owned firms, of which the engineering sector accounts for about
50% of output and exports.

The recession of Swedish economy was observed since the end of 2008 on account of the global economic processes which reduced export demand and consumptions. Nevertheless, in 2011 Sweden took the send place at the rating of the most competitive economies of the world.

It is noteworthy that the Swedish Central Bank, founded in 1668, is the oldest Central Bank in the world. GDP per capita rank of Sweden is 21 (est. 2011). The unemployment rank is 7.5% (est. 2011).

Legal System

The legal system of Sweden is referred to Continental law. Nevertheless, in the established Swedish legal system there are evident features of the Scandinavian-German Civil law.

The legal system of Scandinavian countries developed in its own original way. In the 13th century the first written legal acts appeared.

There are also the features of Roman law in the Swedish legal system which were adopted in the 17th century. Due to that Swedish legal system was brought together with the law of Continental Europe.

The historical base for Swedish legal system was also the Old German law.

The noticeable event happened In 1734 when the Code of laws of Sweden (Sveriges rikes lag) was adopted. It was composed of nine sections divided by the object of regulation and included 1300 paragraphs: marriage, parents and children, inheritance, real estate, construction, trade, crimes, execution of judicial decisions, legal procedure, judicial system.

The
distinctive features of the Swedish legal system:

  • absence
    of Codes systematized the separate branches of law;
  • in spite of
    the fact that the law is the basic source of law, the court practice plays more
    important role than in the countries of Continental Europe, due to the higher
    level of judges’ independence in the interpretation of rules of law;
  • cooperation
    of Scandinavian countries in the sphere of law, the process of unification of
    Scandinavian law.

Types of Entity

Swedish Company Forms are:

  • Limited Liability Company (Ltd) – separate legal entity that can enter into
    contacts, risk is limited to invested capital;
  • Private
    Company
    – not a separate legal entity, but an individual conducting business,
    no accountant requirements or capital adequacy, unlimited risk;
  • Partnerships
    – separate legal identity, no accountant requirements or capital adequacy.
    Unlimited risk and must have at least two part owners;
  • Limited
    Partnerships
    – variant of partnership in which one partner if fully liable
    while others may limit the liability to capital invested.

A Limited Liability Company (Aktiebolag)  is the structure that is often used when setting up business activities in Sweden. Investors can purchase a Limited Liability Company off-the-shelf or form the company themselves.

Usually there are no problems to change company form. In the majority of cases the enterprises are transformed from a Private Company, or Partnership into a Limited Liability Company.

A Limited Liability Company is a legal entity that can enter into contracts and own property. It can also be a party in legal proceedings.

After the registration LLC gets its registration number composed of ten digits which serves as its identification number and remains as long as it exists.

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