How to Incorporate a Limited Company / Aktiebolag (AB) in Sweden

A Swedish AB is a limited company broadly equivalent to the German GmbH of the French Sàrl. All company names must be approved and reserved by the Trade Register Office and this is typically done within a day. The name of your company can be in any language so long as it uses the Latin alphabet but it can not be deceptively similar to a company already trading in Sweden.

We then present the Memorandum and Articles of Association of the company to the Registrar, a Certificate of Incorporation will be issued and your new company is incorporated.

It typically takes two to three weeks to incorporate a new company in Sweden.

What you need to set up a Limited Company/ AB in Sweden

To begin incorporation of your Swedish AB we will require the following:

  • Your company name
  • Details of proposed business activities
  • The full name, date of birth, address and nationality of all directors
  • The full name and address of all shareholders.

Documents you are required to provide:

  • Proof of identity (passport, national identity card, photographic driving licence).
  • Proof of residential address (gas/electricity bill or credit/debit card bank statement dated within the last three months)

Registered Office

  • All ABs must have a registered office where documents may be legally served on the company. The registered office must be a physical address in Sweden; a suitable office is included in our Standard Company Formation Package.

Share Capital Requirements

  • The minimum registered capital of an AB is SEK 50,000 (€5,500)

Ready Made Companies

  • We have shelf companies in Sweden currently available, with a standard Memorandum and Articles designed to permit most general activities; making it possible to commence business at very short notice. Our ready made companies are in good standing, are not the subject of any insolvency proceedings and have not entered into any contracts or engaged in any business activities.

What you receive after setting up your new business

  1. Certificate of Incorporation
  2. Share Certificates
  3. Original government receipt as evidence of payment of annual company registration and license fees

Advantages of Registering a Limited Company / AB in Sweden

  1. A Swedish AB requires only a single director. There is no restriction on nationality at least one resident director/manager is required.
  2. 100% foreign ownership of a Swedish AB is permitted. Only one shareholder is required and there are no restrictions on residency or nationality.
  3. A Limited Liability Company gives a greater degree of business credibility. Your company’s name is protected and incorporation protects the name from use by another limited company.
  4. A Limited Liability Company limits the risk to which all stakeholders are exposed. Trading as a Limited Liability Company limits the risk to which all stakeholders are exposed. A limited company is a legal form of a business organisation, which is classed as an entity that 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 a limited liability company are only liable to lose the value of the share capital to which they subscribe.
  5. A Limited Liability Company has a less brittle management structure. The company can continue to trade despite the death, resignation or bankruptcy of members. The appointment, retirement or removal of a director is straightforward.

Important Information about Incorporating a Limited Company / AB in Sweden

  • A Register of directors and a register of shareholders is filed with the trade register.
  • Incorporating can be a lengthy procedure and so a visit is recommended to simplify and speed up the process and open the bank account.
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