Sweden Expansion Guide
Global Upside helps companies set up, hire, and operate in Sweden. Set up a legal entity quickly and easily with our solutions for branch, subsidiary, and rep office. Looking for an alternative to permanent establishment? Hire and pay employees in Sweden without a legal entity by using our PEO & employer of record services. Once your business is set up, our teams can support with recruitment and staffing, human resources, employee benefits, payroll, accounting, and tax.
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.
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:
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.
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.
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
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.
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.
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.