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Starting and registering a limited company (AB) in Sweden
You can start a limited company alone or with one or more other people. A limited company is a company in which the partners, i.e., the shareholders, are normally not personally liable for the company's debts. Liability is limited to the capital invested in the company.
A foreign company can carry out business in Sweden either by incorporating a Swedish registered subsidiary company in the form of a limited liability company (Sw. aktiebolag) or by registering a Swedish branch which is considered an extension of the overseas company (Sw. filial)
Important points when starting AB (limited company)
1. You need SEK 25,000 in share capital
When you start a limited company, you need at least SEK 25,000 in share capital. Your share capital may consist of cash or property that is useful to the business (in kind), such as a car or a property.
2. Write a memorandum of association and articles of association
You must write a special document describing your decision to set up a limited company. This is called a memorandum of association. The document must also include a draft of the articles of association, the company's set of rules. The board of directors must also establish a register of all the company's shares and shareholders, a share register. The share register is public.
3. Register the limited company at The Swedish Companies Registration Office
Yan Incorporation will apply your AB registration to the Swedish Companies Registration Office for publication when the company is registered.
Taxes and contributions for AB (limited companies)
A limited company pays corporation tax on the profit the company had during the year. The company may also have to pay, for example, property tax, VAT, employer contributions and tax on employee wages.
How to pay taxes in a limited company
F-tax, VAT registration and employer registration
The limited company can apply for approval for F tax and register for VAT. If the limited company pays compensation for work, the company must apply for registration as an employer.
Tax details
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Corporate income tax: 20.6% applicable on the company’s profit; there is no surtax or alternative minimum tax;
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Withholding tax: 0% for dividends, interest and royalties payments; there is no withholding tax on the dividends paid to residents;
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Value-added tax: the standard rate is 25% unless the goods or services are exempt or zero-rated or subject to the 6% or 12% rate;
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Social security contributions: aggregate contributions in amount of 31.42% in certain cases; those made by self-employed individuals amount to 28.97%.
The company pays tax every month
The limited company pays preliminary tax in equal installments every month during the tax year, normally on the 12th of each month. The company pays the preliminary tax into its tax account with the Swedish Tax Agency.
After each tax year, the limited company must submit an income declaration to the Tax Agency. This applies even if the company has not conducted any business.
Get in touch with us
Contact us today to receive a quotation for our company formation in Sweden. We are here to assist you every step of the way.
Contact
Email: info@yanincorporation.com
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