Expand Business in Sweden

Global Upside helps businesses expand into Sweden by providing talent acquisition, human resources, accounting, payroll, tax, incorporation, and professional employer organization (PEO)/employer of record (EOR) services. Our comprehensive offerings create an end-to-end solution that helps you establish your business and optimize your operations, all while maintaining compliance with Swedish laws and regulations.

The hiring and incorporation processes in Sweden are often complex, time-consuming, and involve numerous legal and compliance challenges. Global Upside simplifies these processes and lifts the compliance burden from your business. Our teams have the experience and expertise required to help you establish a legal entity in Sweden. We also offer PEO/EOR solutions to companies interested in hiring employees quickly, without setting up a legal entity in the country.

Capital City

Stockholm

Currency

Swedish Krona (SEK)

Language

Swedish

Government

Parliamentary Constitutional Monarchy

Country Overview

Sweden has a competitive mixed economy and has accomplished a high standard of living under a varied arrangement of high-tech democracy and wide government assistance benefits. Sweden is a world forerunner in privatized pensions and annuity subsidizing issues are small as compared to numerous other Western European nations. The Swedish labor market is also extremely flexible.

  • Sweden ranks as the 24th largest economy in the world in terms of the nominal GDP.
  • Sweden ranks as the 11th largest economy in Europe in terms of the nominal GDP.
  • Sweden is the 2nd best country in the world for business.
  • Sweden ranks as the biggest exporter of machinery including computers.

Legal Entity Setup

Options for setting up a legal entity in Sweden include:

Limited company (Sw. aktiebolag/ AB)

Limited company (Sw. aktiebolag/ AB) is an independent and distinctive legal establishment that is managed by a board of directors. They make major business decisions and look after the general affairs of the firm.

Trading Partnership (Sw. handelsbolag/ HB)

Trading Partnership (Sw. handelsbolag/ HB) is an establishment that comprises of an agreement between at least two individuals or legal entities to run a business. The partners are permitted to build their relations as they see fit without the limitations of a corporate structure.

Limited Partnership (Sw. kommanditbolag/ KB)

Limited Partnership (Sw. kommanditbolag/ KB) is a type of a trading partnership wherein at least one of the associates has retained the privilege not to be legally responsible for the compulsions of a KB over the entirety he or she has subsidized or attempted to add to a KB. This partner is known as a limited partner (Sw. Kommanditdelägare). The other partners in a KB are known as general partners (Sw. Komplementär). This kind of establishment must have a minimum of two associates – one general partner, and one limited partner.

Branch Office (Sw. filial/ Branch)

Branch Office (Sw. filial/ Branch) is the branch office of a foreign organization with a different administration in Sweden. A branch is not a separate lawful entity. A foreign organization may have only one branch in Sweden. A branch has no autonomous capital and its benefits and liabilities are an aspect of the absolute resources of the foreign organization.

It takes a minimum of three to four weeks to establish a legal entity set up in Sweden, depending on the kind of establishment required.

Human Resources

The fundamental sources of national employment law, in Sweden, are found in the Swedish Constitution, collective bargaining agreements (CBAs), case law, authority provisions, statutes, employer decision-making, and individual employment contracts.

The terms and conditions of employment here are regulated by the Employment Protection Act (1982:80), the Annual Leave Act (1977:480), and the Working Hours Act (1982:673).

An employment agreement does not always have to be written; however, the following information is required:

  • Personal details
  • Details of the workplace
  • Start date of the job
  • Job title and description
  • Enrollment structure and notice period information
  • Renumeration and payroll frequency
  • Other benefits
  • Leaves and holidays
  • Collective bargaining agreements
  • Travelling if required

Payroll

The salary paid here is monthly, usually on the 25th of the month and employees need to be provided with a payslip on the payday and these records must be kept with the employer for at least 10 years.

Accounting

All accounting standards in Sweden conform with the Swedish Accounting Standards Board, Annual Accounts Act, the Swedish Institute of Authorized Public Accountants, and the Swedish Financial Accounting Standards Council.

Tax & Compliance

Corporate Tax

The corporate tax rate in Sweden is 21.4%.

Value Added Tax (VAT)

The standard VAT rate here is 25% and the reduced rates are 12 and 6% on a few basic goods.

Data Privacy

The General Data Protection Regulation (GDPR) is the chief data protection constitution in the European Union which also includes Sweden. The Swedish government has stipulated the Swedish Data Protection Authority to be the administrative authority under the GDPR. Furthermore, the Swedish Data Protection Authority (SDPA) is also the managerial authority under the Swedish law that complements the GDPR.

Anti-Bribery & Anti-Corruption Law

The Swedish Penal Code (SPC) covers the requirements regarding bribes in Chapter 10 (On misuse, other acts of violation of trust and bribery).
According to the SPC, the penalty is the same for public officials as for individuals that bribe public officials and there is no difference between private bribery and bribery of public officials. They are the following:

1. Bribery for public officials

For individuals
i) Imprisonment of a minimum of 2 years.
ii) A monetary fine of a maximum amount of SEK 150,000.
For legal entities
i) Organizational fine between SEK5,000 and SEK10 million.

2. Bribery for private officials or entities

For individuals:
i) Imprisonment for up to 2 years.
ii) A monetary fine of SEK 150,000.
For legal entities:
i) Organizational fine between SEK5,000 and SEK10 million.