Setting up a business
Sweden, known for its strong economy, innovation, and high quality of life, presents an attractive environment for businesses looking to expand into the region of northern Europe. The country is member of the European Union.
Sweden boasts an open economy with a high level of transparency and a low level of corruption. The workforce is skilled and the infrastructure advanced. Sweden’s tax structure is transparent and efficient. Corporate tax rates are competitive; 20,6 percent.
Sweden is known for its tech-savvy population and most people in the business sector speak excellent English.
Setting up a business in Sweden starts by choosing a legal structure. Common options include aktiebolag (limited liability company) and filial (branch office).
The registration process of aktiebolag is digital and fairly prompt. Directors, persons with signatory powers and any beneficial ownership will be registered. If none of the directors are living in Sweden, an authorised recipient of service must be registered.
The share capital requirement for an aktiebolag is SEK 25,000 (aprox. 2 000 euro) and must be paid before registration.
To start a branch office, a filial, in Sweden one need to register the office with the registration authority and appoint a general manager. The process is digital. Persons with signatory powers and any beneficial ownership of the parent company will be registered. The branch office’s book-keeping accounts must be separate from the book-keeping accounts of the foreign parent company.
Any business entity must register with tax authorities and if the entity aspires to employ staff, a particular registration with tax authorities is mandatory.
Sweden has strong labour laws that protect employees’ rights, including collective agreements. The parental leave policies are for example generous.
Swedish society places a strong emphasis on sustainability (ESG). Sweden offers incentives for companies engaged in R&D activities in general, and sustainability and environmental R&D in particular. As Sweden is committed to transitioning to renewable energy sources, incentives are mainly for renewable energy projects and energy-efficient technologies.
Doing business with Swedish counterparts
Swedish business culture is in general characterized by a strong emphasis on equality, open communication and collaboration. Decision-making is often decentralized, and consensus-building is preferred. Employees at various levels are encouraged to contribute their ideas and opinions.
Swedish business interactions are generally characterized by an initial degree of formality. However, once a relationship has been established Swedes are generally quite informal. The communication style is direct and straightforward, although not confrontational.
Punctuality is highly valued as a sign of respect for the counterpart’s time and commitment.
Swedes have a strong commitment to sustainability (ESG). Business discussions will most certainly include efforts being made in this area. Demonstrating conscious practices is viewed favorably by Swedish partners.
Article written by
HELENA SJÖGREN
Advokat / Partner
Allians Law firm
Stockholm, Sweden
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