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Starting a company in Sweden - registration, taxes, accounting

Planning to set up a company in Sweden? Check out what you need to know

Sweden is one of the most open markets in Europe - 8th in IMD's competitiveness ranking, full access to the EU market, developed infrastructure and a skilled workforce. There are no discriminatory laws against foreign investors here: 100% foreign ownership is fully legal.

But an open market is not the same as a market without rules. Sweden has a transparent and efficient system for registering companies - but the requirements for taxes, social security and reporting are stringent. Skatteverket, the Swedish tax authority, actively monitors foreign entities and efficiently enforces compliance with local regulations.

At Aider Polska, we provide accounting services for Polish companies entering the Swedish market - from choosing a form of business and registering a company in Sweden, through VAT, payroll and employee settlements, to ongoing bookkeeping and tax reporting. We know what to watch out for - and we're happy to share it.

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How to start a company in Sweden? Key information before you start

Before starting a business, it's a good idea to determine the business model, the scale of operations and the level of responsibility you want to bear as an entrepreneur. In practice, the choice of legal form affects how you will be taxed, your administrative responsibilities and your credibility with Swedish counterparties.

Which legal form should you choose?

Foreign companies most often choose one of two structures:

Ltd. (Aktiebolag, AB) - the equivalent of a Polish limited liability company and by far the most popular choice among foreign investors. It is a separate legal entity, protects the owner's assets and builds credibility with Swedish counterparties. Minimum share capital is SEK 25,000 (about EUR 2,200). Requires a board of directors - at least 50% of board members must reside in the EEA.

Branch (Filial) - Swedish extension of a foreign company, without separate legal personality. Faster and cheaper to set up than an AB, but does not limit liability - the parent company is liable for the branch's obligations. Requires the appointment of a managing director with residence in the EEA. The branch must keep its own separate books of account.

In addition to these two, there are partnerships (Handelsbolag, Kommanditbolag) - less commonly used by foreign companies, but worth considering in specific joint venture structures .

Regardless of the form chosen - Aider Polska keeps the books for each type of business and ensures compliance with Swedish standards from day one.

Registration of a company in Sweden - step by step

Registration of a company in Sweden is done through the Bolagsverket (Company Registration Office). Once registered, the company receives an organisationsnummer - a Swedish identification number necessary for entering into contracts, issuing invoices and all dealings with authorities. Registration usually takes up to six weeks.

The next step is tax registration with the Skatteverket (Swedish Tax Agency). With one application, you can register simultaneously as a VAT payer, an employer and obtain F-skatt status - a Swedish tax certificate for entrepreneurs. The latter is crucial: without F-skatt, a Swedish contractor may refuse to pay an invoice or be required to deduct 30% withholding tax from your wages.

Ongoing communication with the authorities is facilitated by the Verksamt.seplatform - a joint portal of Skatteverket, Bolagsverket and Tillväxtverket, through which most applications and reports are submitted.

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VAT (Moms) - what you need to know

Sweden's standard VAT rate (Mervärdesskatt, Moms) is 25%. Reduced rates also apply: 12% for food, hotel and restaurant services, and 6% for passenger transportation, books and newspapers, among others. Temporarily, from April 2026 until the end of 2027, most food is taxed at 6%.

Sweden is a member of the EU, which means the VAT rules here are closer to those you're familiar with in Poland than they are in Norway. But there are important differences:

For Polish companies operating in Sweden, the VAT registration threshold does not exist. Foreign companies performing taxable activities in Sweden must register before the first transaction - regardless of the value of sales.
Non-EU companies are required to appoint a fiscal VAT representative in Sweden, who is jointly and severally liable for the customer's VAT obligations. Polish companies, as EU entities, do not have this obligation - although many choose to support an agent for convenience and compliance certainty.
VAT returns are filed monthly (turnover above SEK 40 million), quarterly or annually - depending on the scale of the business through the Skatteverket.

Corporate income tax

Sweden's CIT is 20.6% and is calculated as a flat tax on profits. Tax losses can be carried forward indefinitely.

Will your company be subject to tax in Sweden? It depends on whether an establishment (permanent establishment)is created . Sweden recognizes an establishment when, among other things:

the company has a permanent place of business in Sweden (office, warehouse, construction site lasting more than 6 months),
a local agent has and regularly exercises the right to conclude contracts on behalf of the foreign company,
the employees are seconded to and work under the direction of a Swedish entity - Swedish regulations apply the concept of economic employerin such cases , which can mean taxation from the first day of work.

Sweden has double taxation treaties with many countries, including Poland,-but each situation should be evaluated individually. As part of accounting outsourcing, Aider Polska analyzes your tax situation, calculates your liabilities and ensures that the Skatteverket submits its returns on time.

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Employment of workers and payroll in Sweden

Sweden has no statutory minimum wage - wages in most industries are regulated by collective agreements (kollektivavtal). They apply to more than 90% of Swedish workers, and employers who do not apply them risk union inspections and retroactive penalties.

As an employer, you have an obligation to:

deduct advance payments for employee income tax (A-skatt) and pay them to Skatteverket,
pay social security contributions - 31.42% of gross salary when having an establishment in Sweden (18.8% if the establishment is not established),
submitting monthly Arbetsgivardeklaration (employer's declaration)reports to the Skatteverket.

EU/EEA employees can work in Sweden without a visa. Non-EEA employees need a work permit issued by the Migrationsverket - the process takes 3-8 months, so it's worth planning ahead.

A note on the economic employer concept: as of 2021, Sweden applies it strictly. Even if an employee is formally employed in Poland, but works under the direction of a Swedish entity and for its benefit, Swedish tax liability may arise from day one.

Calculating wages according to Swedish law - taking into account the correct tax rates, the employee's correct tax table and timely reporting - is an area where Aider Polska takes full responsibility, minimizing the risk of costly mistakes.

Accounting in Sweden - obligations of the entrepreneur

Every company operating in Sweden is required to keep its accounts in accordance with Swedish GAAP standards (based on the K2 or K3 framework, depending on the size of the entity). Annual accounts are submitted to Bolagsverket - the deadline is 6 months after the end of the fiscal year.

Outsourcing yourbookkeeping to Aider Polska means that we take care of all of this for you: we keep the books for each type of business, settle taxes, prepare financial statements and ensure that all declarations are filed on time.

The obligation to appoint an independent auditor arises when a company exceeds at least two of three thresholds for two consecutive years: SEK 3 million in total assets, SEK 6 million in revenue or 3 employees. Aider will help you assess when an audit becomes mandatory and prepare for it.

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Consequences of failing to meet obligations

The Skatteverket acts efficiently - and without warning. Failure to file annual financial statements on time carries a penalty starting at SEK 7,500 for the first violation. Late reports exceeding 11 months can trigger liquidation proceedings.

The Swedish tax authority is actively inspecting foreign companies - especially those without F-skatt, with unclear ownership structures or with employees that could generate a tax establishment. In recent years, the Skatteverket has significantly shortened the deadlines for responding to tax arrears: proceedings before the bankruptcy court can be launched within just 14 days of the discovery of irregularities.

Therefore, companies opting for Aider Polska's accounting services from the very beginning - instead of discovering obligations post factum - save both money and nerves.

Aider Poland - your partner for doing business in Sweden

Sweden is a market with huge opportunities - and with clearly defined rules of the game.

Aider Polska knows these rules. We help Polish companies enter the Swedish market safely and efficiently: from choosing a legal form and registering with Bolagsverket, through payroll and ongoing accounting outsourcing, to tax settlements, annual reports and audit services. Our accounting services cover any type of business - regardless of industry or legal form.

Are you planning to establish a company in Sweden? Contact us - tell us what you are planning and we will guide you through the process step by step.

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FAQ - Establishing a company in Sweden

- To establish a company in Sweden, you must choose a form of business (usually AB or Filial branch), register the company with Bolagsverket, obtain an organizational number, register with Skatteverket and, depending on the business, obtain F-skatt and VAT registration.
- The cost depends on the form of the business. For an AB company, the minimum share capital is SEK 25,000. In addition, the cost of registration, bookkeeping and tax handling must be taken into account.
- The most common solutions are an AB limited liability company (Aktiebolag) and a branch of a foreign company (Filial).
- CIT in Sweden is 20.6%, and the standard VAT rate (Moms) is 25%. Foreign companies performing taxable activities in Sweden must register VAT before the first transaction.
- Yes. Any company doing business in Sweden is required to keep its accounts in accordance with Swedish regulations and file the required reports and declarations.