Choose the form of business enterprise

Trading Limited Limited Economic

Sole trader partnership partnership company association

Swedish Companies Registration Office no. 10e, 2013-07-01

Legal entity No Yes Yes Yes Yes

Number of Only 1 person At least 2 people At least 2 people At least 1 person At least 3 people
owners or enterprises or enterprises or enterprise or enterprises

Owner liability The business operator The partnership can The partnership can The company can enter The association can
is personally liable enter into agreements, enter into agreements, into agreements and is enter into agreements
for the agreements but if it cannot pay its but if it cannot pay liable for its debts. and is liable for its
entered into and for the debts, the partners are its debts, the general debts.
debts of the enterprise. liable. partner is liable.

Capital No No General partner: no At least SEK 50,000. Yes, in the form of

requirement Limited partners: at a cash or work invest-
least SEK 1 ment.

Representatives The sole trader The partners The general partner The board of directors The board of directors

Registration With the Swedish Tax With the Swedish With the Swedish With the Swedish With the Swedish
Agency and possibly Companies Registration Companies Registration Companies Registration Companies Registration
the Swedish Companies
Tax Agency Tax Agency Tax Agency Tax Agency

Name protection In the county In the county In the county Nationwide Nationwide

Form of taxation F or FA tax The partnership: F tax The partnership: F tax The company: F tax The association: F tax
(FA tax for income from Partners: SA tax (spe - Partners: SA tax (spe - The owners: A tax The members: A tax
both the business and cial debited A tax) cial debited A tax) (employees) (employees)
employment)

Taxation The business operator Partners are taxed Partners are taxed The company is taxed The association is taxed
is taxed for the surplus for their part of the for their part of the on its profit (corpora - on its profit (corpora -
(income tax + social partnership’s surplus partnership’s surplus tion tax). The owners tion tax). The members
security contributions). (income tax + social (income tax + social are taxed on salary are taxed on salary
security contributions). security contributions). withdrawn and possible taken out and possible
dividends (income tax + dividends (income tax +
possible gains tax). possible gains tax).

Annual report Only annual accounts If the trading partner - If the limited partner - All limited companies An annual report must
and auditor ship has a legal entity ship has a legal entity must file an annual be prepared and
of a certain size as a of a certain size as a report with the Swedish an auditor must be
co-owner, the partner - co-owner, the partner - Companies Registration appointed.
ship must appoint an ship must appoint an
accountant and submit accountant and submit Small companies may
an annual report to the an annual report to the choose not to have an
Swedish Companies Swedish Companies auditor.

Allocation of Normally only to As per agreement if As per agreement if Profit can be allocated Profit can be divided
profit and loss the business owner. such an agreement such an agreement to the shareholders in between the members
Exceptions are spouses exists. Equal distribu - exists. If no agreement the form of a dividend. in the form of a bonus.
and cohabitants with tion otherwise. exists and the partners
mutual children. cannot agree on the al-
location, the issue must
be decided in court.

Income as the Surplus The surplus for the The surplus for the Salary withdrawn Salary withdrawn
basis of sickness partners individually. partners individually.
benefits

Qualifying period 1, 7, 14, 30, 60 or 90 1, 7, 14, 30, 60 or 90 1, 7, 14, 30, 60 or 90 1 day 1 day
days days days

Starting Up a Business