Doing business

Sweden

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Setting up a company | FDI in figures | Why you should choose to invest | Procedures relative to foreign investment | Finding assistance for further information

Setting up a company

Types of companies and capital (max/min)	Number of partners/shareholders and liability
The Aktiebolag (AB) is the equivalent of a public limited company. 100,000 SEK minimum. 500,000 if the company brings in public savings. The capital is fully subscribed and paid-up.	No minimum Liability is limited to the amount of capital contributed.
The Enskild näringsidkare is an individual company. No minimum	Only one Liability is unlimited.
The Handelsbolag or HB is a partnership. No minimum capital.	2 partners minimum Liability is joint and unlimited regarding third parties.
The Kommanditbolag is a limited partnership. No minimum capital.	2 partners minimum Liability is limited to the amount of capital contributed, in agreement with the other partners. However, a shareholder must pledge his unlimited liability.

Business setup procedures

Setting up a company	Sweden	OECD
Procedures (number)	3.0	5.6
Time (days)	15.0	13.8

Source: Doing Business.

For further information: Consult Doing Business Website, to know about procedures to start a Business in Sweden.
Swedish Companies Registration Office – Bolagsverket
The competent organization: Swedish Companies Registration Office.

FDI in figures

Foreign Direct Investment	2008	2009	2010
FDI inward flow (millions USD)	33,704	10,322	5,328
FDI stock (millions USD)	272,145.5	331,974.3	348,667.5
Performance Index*, ranking on 141 economies	39	64	-
Potential Index**, ranking on 141 economies	10	-	-
Number of Greenfield investments***	86	98	-
FDI inwards (in % of GFCF****)	34.4	18.9	-
FDI stock (in % of GDP)	55.8	75.0	-

Source:

Note: * The UNCTAD Inward FDI Performance index is based on a ratio of the country's share in global FDI inflows and its share in global GDP. ** The UNCTAD Inward FDI Potential index is based on 12 economic and structural variables such as GDP, foreign trade, FDI, infrastructures, energy use, R&D, education, country risk. *** Green field investments are a form of foreign direct investment where a parent company starts a new venture in a foreign country by constructing new operational facilities from the ground up. **** Gross fixed capital formation (GFCF) measures the value of additions to fixed assets purchased by business, government and households less disposals of fixed assets sold off or scrapped.

Why you should choose to invest Sweden

Strong points: The political and economic situation is very favorable and the quality of the business environment is good. This environment favorably influences the way companies behave in making payments. The average probability of defaulting is very low.
According to the World Bank, Sweden is amongst the world's first 10 economies in terms of facility of business undertakings. The survey takes into account the following indicators: the formation of one's own company, hiring and dismissing employees, executing contracts, loan availability, registering one's capital and investor security.
The Swedish tax system is direct and corporate tax is amongst the lowest in Europe. The country applies contribution exemptions, authorizes total tax deductions on interest, and does not have strict capitalization rules.
The legal system is balanced and ensures sound, transparent and reliable hearings. Contracts are standardized and documents are often used for simple procedures, especially for mortgages.
The quality of management and consultancy services is very high, and commercial formalities and procedures are easy to undertake.
For further information, consult the ISA website.
Weak points: The country's only weak point is the high cost of manpower.
Government measures to motivate or restrict FDI: Since it joined the European Union, the Swedish government has established a number of reforms to improve the business legal environment. This has enabled it to attract foreign investors and increase competitiveness.
Sweden is ranked n° 1 by the OECD in terms of public spending, especially in promoting investment.
Bilateral investment conventions signed by Sweden: To see the list of countries, click here.
To see the conventions, click here.

Procedures relative to foreign investment

Freedom of establishment: Yes.
It takes two to three weeks once the Swedish Company Registration Bureau has received the written application.
Acquisition of holdings: Taking a majority holding in the capital of a Swedish company is allowed. Click here.
Obligation to declare: The investment promotion agency in the country gives information about the authorizations necessary for setting up.
Competent organization for the declaration: The Swedish Company Registration Bureau (Bolagsverket)

Finding assistance for further information

Investment aid agency: Invest in Sweden Agency (ISA)
Almi Foretagspartner
NUTEK
Other useful resources