Company formation in Sweden in 2026

Updated 7 October 2026

A Swedish private limited company with capital from $2,500, online registration with the Companies Registration Office and 20.6% corporate tax. We support you from documents to the bank account.

Sweden runs one of the most digital business registration systems in the EU: applications are filed online and decisions arrive by email. A private limited company needs share capital of at least $2,500. The Companies Registration Office charges $240 for an online filing and $270 for a paper one. The company pays 20.6% corporate tax and 25% VAT.

A foreigner or a foreign company can be the founder. But the managing director and at least half of the board members must live in the European Economic Area, and if no one in management lives in Sweden, the company needs a person in the country authorised to receive official documents.

Who a Swedish company suits

A Swedish company is chosen for sales in Sweden and the neighbouring Nordic countries, for software and technology projects, for hiring staff in the country and as a holding: dividends from subsidiaries and gains on the sale of shares in them are usually not taxed in the hands of a Swedish company.

The company brings an EU VAT number, accounts that banks understand and the reputation of a country with open registers. It suits less those who need a firm with no people or office in Europe: a Swedish bank will not open an account for a company with no link to the country, and the board residence requirement would have to be met with hired directors.

Which form to choose in Sweden

• Private limited company - the standard for businesses and holdings: liability is limited to the capital, capital from $2,500.
• Branch of a foreign company - if the work in Sweden is done in the name of an existing company; a branch has no capital of its own but needs a managing director living in the European Economic Area. The fee to register a branch is $300.
• Sole trader - for working without a company; a non-EU foreigner needs a residence permit that allows running a business.

Requirements and documents

One founder is enough. The board of a private company may have one or two members, but then a deputy is mandatory; with two or more members, one is elected chair. A board member or managing director cannot be under 18, bankrupt or prohibited from carrying on business.

• the memorandum of association and the articles: name, activity, amount of capital and number of shares;
• a certificate from a bank in Sweden or another European Economic Area country that the capital has been paid, on a special form and translated into Swedish;
• certified passport copies for board members and the managing director who are not in the Swedish population register;
• details of the person in Sweden authorised to receive documents, if no one in management lives in the country;
• documents of a corporate founder: a register extract and proof of the signatory's authority, with a translation;
• for the bank: a description of the business, the ownership structure up to the ultimate owner and source of funds documents.

The application must be filed no later than six months after the memorandum of association is signed, otherwise the formation lapses.

How to register a company in Sweden: steps and timelines

The longest link for foreigners is the account for paying in the capital: Swedish banks check founders from abroad thoroughly, so we prepare the source of funds file in advance.

How much does it cost to open a company in Sweden in 2026

Amounts are converted to dollars at the Central Bank of Russia rate of 7 October 2026 and rounded up.

The state fee for registration starts at $240, plus the capital, which remains the company's money. The cost of support depends on the ownership structure and the account: a manager will calculate it in the chat.

What taxes a company pays in Sweden

• Corporate tax is 20.6%.
• VAT is 25%, with reduced rates of 12% and 6%. A business with turnover of up to $12,000 in a calendar year may stay unregistered.
• Employer contributions are 31.42% of employees' salaries.
• Dividends to a foreign owner are subject to 30% withholding tax; double tax treaties reduce it, and an EU parent company holding at least 10% receives dividends free of the tax.

Why registration gets delayed

• The bank does not accept foreign founders without a detailed source of funds file, so the capital is not paid.
• Half of the board lives outside the European Economic Area and no exemption has been obtained from the Office.
• There is no person in Sweden to receive documents although management lives abroad.
• Errors in the articles: the activity, capital or number of shares do not match the application.
• Documents of a foreign corporate founder without a translation or proof of authority.

Restrictions for certain nationalities

Swedish law does not restrict the founder's citizenship: a national of any country can own the company. The restriction concerns where management lives: the managing director, at least half of the board members and half of the deputies must live in the European Economic Area. The Companies Registration Office grants exemptions on a separate application.

For non-EU nationals, owning a company gives no right to live in Sweden: working in your own firm in the country requires a residence permit. For nationals of Russia and Belarus without a residence permit in the European Union an EU regulation applies: a bank does not accept deposits from them above $120,000. Banks take longer to check such founders, so we plan the capital account before the documents are signed.

Annual obligations of a Swedish company

• The annual report is filed with the Companies Registration Office within 7 months of the financial year end.
• For late filing the Office charges a penalty: $750 right after the deadline, another $750 two months later and $1,500 two months after that. If no report arrives within 11 months, the company may be put into compulsory liquidation.
• An auditor is mandatory if for two years running the company exceeds two of three thresholds: more than 3 employees, a balance sheet above $150,000, turnover above $300,000.
• The corporate tax return and the VAT and employer returns are filed with the tax agency on its schedule.
• Changes to the board, address and beneficial owners are reported to the register.

We keep the books and filings together with registration so that the company is not charged a penalty for a late annual report.

What we do

We prepare the memorandum and articles, help with the bank for paying in the capital, file the application online, find a person in Sweden to receive documents and board members from the European Economic Area, register the company with the tax agency and file the beneficial ownership details. A manager will calculate the total for your structure in the chat.

What we do

• Sweden services

See also

Business account · Personal account · Investment property · All country programs

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