Swedish Limited Liability Company (AB) Company Formation
A Swedish Aktiebolag (AB) is equivalent to a Limited Liability Company in the UK or a GmbH in Austria and Germany in that it is a legal entity which is separate and distinct from the individuals who run it. For sole traders and for people in partnerships, the individuals’ personal assets are at risk if there is a claim against the organisation but shareholders in an AB are liable to lose only the value of the share capital to which they subscribe.
The company name must be approved by the Bolagsverket. Your company name may be in any language but it must be unique and certain words, such as ‘bank’, ‘insurance’ and ‘group’ require special permission. Once you have chosen a company name we can check with the Bolagsverket to verify that the name is acceptable. You can check your proposed name now using our free Company Name Check service, after a name has been approved we can reserve it free of charge for ten days.
All companies are required to have a registered office in Sweden, where legal company documents and correspondence may be served. We provide a registered office as part of our incorporation package.
Only one director is required and at least one director must be resident in Sweden. Director registers must be filed and kept up to date at the Bolagsverket and they are available for public inspection upon request.
Only one shareholder, of any residency and nationality is allowed. This means 100% foreign ownership is permitted. Annual general meetings may be held at any time during the year, in any location and can be attended via electronic means.
The minimum share capital is SEK 50,000 (approximately EUR 5,500). This share capital may be expressed in cash or assets.
All companies are required to file annual financial statements with the Bolagsverket, these must be filed within seven months of the end of the accounting period and all statements must be recorded in the Swedish language and drawn up in Euros or Swedish Krona. An auditor is required if company employs more than three individuals.
Once all the necessary information has been received the incorporation will be completed in two to three weeks.
Proof of Identity
As part of our due diligence we require proof of identity in the form of a passport copy for all directors and shareholders of the company.
Although not mandatory, visiting Sweden is highly recommended in order to incorporate.