Limited company | Companies guide

Content

A limited company (aktiebolag) is set up by one or more persons. It is a legal entity and is issued with a registration number as its means of identification.

Obligations

A limited company is to be represented by a board of directors and, in certain cases, a managing director. The board of directors is appointed by the general meeting of shareholders. An approved or an authorized public accountant must accept appointment as company auditor, before it is possible to register a limited company.

The administration of a limited company is not quite as simple as for other forms of business enterprise. For example, the company's annual report for every financial year must be filed with Bolagsverket.

Responsibility and risk

A considerable capital investment is necessary when starting a limited company. The share capital for a company classed as private (privat) must be a minimum of 50 000 Swedish Crowns and for a company classed as public (publikt) it must be a minimum of 500 000 Swedish Crowns. Apart from that, the owners have no personal responsibility for the company's debts or other obligations. There are certain exceptions.

The board of directors and the managing director have extensive responsibility and in certain circumstances, these persons can become personally liable for the company's debts.

Protection of business name

The registered business name of a limited company is protected throughout the country.

Advantages of a limited company

The limited company provides the best financial protection for you as a private person. There is a clear dividing line between the business enterprise and its owner(s).

The influence of the shareholders in a limited company (and the financial ownership) is in relation to the shares they own.

From the point of view of taxation, the limited company is still considered by many to be a favourable form of business enterprise, although the differences between this and other forms of enterprise are being evened out.

A limited company may have a split financial year, which can facilitate financial planning with regard to taxes, credits, salaries and interest.

Register the company via the internet

Use the webservice verksamt.se to register a limited company. You can also use application form Registration of a new company – limited liability company, nr 816 e.

A piece of good advice

Do not order any stationery, printed matter, signs, etc. until your business and the name you applied for have been registered.