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 is a Scandinavian country in Northern Europe bordering Norway and Finland with high living standards. The country’s economy is small, open and competitive and is based on exports, focusing on engineering, telecommunications, medicines and automobiles.

Legal Entity Setup

Options for setting up a legal entity in Sweden include:

Limited Company (aktiebolag/ AB)

A limited company is an independent legal establishment that needs at least one investor, and there is no personal liability. A board of directors manages it. There are two types of ABs:

  1. Private
  2. Public 

Trading Partnership (handelsbolag/ HB)

A trading partnership is an establishment that requires at least two investors (individuals or legal entities) to run a business. The partners are liable for any debts.

Limited Partnership (kommanditbolag/ KB)

A limited partnership is an establishment that requires at least two investors (individuals or legal entities), of which one is a general partner and the other a limited partner. General partners have unlimited personal liability (jointly and severally) for the debts and agreements of a KB. Limited partners are only responsible for the amount contributed, which includes obligations that already exist.

Branch Office (filial/ Branch)

A branch office is a part of a foreign organization which also has a different administration in Sweden. A branch office is not a separate lawful entity.

Human Resources

In Sweden, an employment contract can be either in writing or verbal.

The following are the statutory national holidays observed in Sweden:

  • January 1 – New Year’s Day 
  • January 6 – Epiphany 
  • April 2 – Good Friday 
  • April 4 – Easter Sunday 
  • April 5 – Easter Monday 
  • May 1 – May 1st (Labor Day) 
  • May 13 – Ascension Day 
  • May 23 – Whit Sunday 
  • June 6 – National day 
  • June 26 – Midsummer Day 
  • November 6 – All Saints’ Day 
  • December 25 – Christmas Day 
  • December 26 – Boxing Day 

Payroll

Wage payment requirements are determined through collective bargaining agreements (CBAs) for most working-class jobs, though payments are frequently made monthly.

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.

Taxes

Corporate Tax

The corporate tax rate in Sweden is 20.6%.

Value Added Tax (VAT)

The standard VAT rate is 25% for most goods and services. There are also reduced rates of 12%, 6%, and 0% on a few essential goods.

Data Privacy

The Swedish Personal Data Act governs the processing of employees’ data. 

The General Data Protection Regulation (GDPR) came into effect in Sweden May 25, 2018.

Anti-Bribery & Anti-Corruption Law

The Swedish Criminal Code (brottsbalken, SFS 1962:700) was enacted in 1962 and was made effective January 1, 1965. Penalties for bribery and corruption include imprisonment and monetary fines.