According to the residents of Sweden, it is difficult to find the best place to run your business. And this applies to both residents and citizens of other countries, who get the opportunity to buy, sell and invest in projects on an equal footing with the Swedes. At the same time, to conclude a contract, just an ordinary contract is enough, and taxes for legal entities are the lowest in Europe.
What features a business in Sweden has
1. Organizational and legal forms.
In Sweden, there are quite a few different forms of doing business, but for non-residents, there is an opportunity to create only companies of the following types: individual entrepreneur (IE); limited liability company (LLC); trade partnership (TP); economic association (EA). However, this is not a serious drawback, since many Russians successfully open their business in Sweden (for example, as a PJSC) and earn quite good money in their business.
The biggest plus for non-Swedish businessmen is the taxation system. This is not a very pleasant moment for citizens permanently residing in the country (their taxes make up almost half of all income), but a huge plus for non-residents (including Russians): a much smaller tax quota; if the business brings only losses or does not bring any income, then the entrepreneur is exempted from paying taxes; the same rule applies to companies that earned less than 18,784 Swedish kronor (about 138 thousand rubles) per year. Recently, a significant change has appeared in the Swedish tax code. Cancellation of statutory audit for companies with an annual turnover of 300 thousand euros. This is also a particular advantage for starting a business. Summing up, it can be noted that the situation with taxes is always advantageous for non-residents: weak income – tax exemption; average profits – a small percentage of taxation; high income is still a low percentage and there is no need to go through a statutory audit.
3. Other benefits.
Business in Sweden has a wide range of other advantages, which are especially important to mention:
- highly developed state;
- the lowest taxes for legal entities in all of Western Europe;
- investing, buying, selling a company does not require the status of a resident of the country;
- the simplest registration system;
- reliable banking system;
- open and competitive economy;
- very low level of corruption;
- transparent work of state authorities;
- simple and reliable trade relations.
Moreover, especially outstanding businessmen and entrepreneurs have access to the possibility of obtaining a residence permit.
But, as in any other field of activity, there are pitfalls. Namely, the requirements for doing business: you need to know Swedish (the basic level will not be enough); availability of a business visa; obligatory provision of a detailed business plan of the future company/enterprise; availability of the required amount of funds for living in the state, as well as payment of the minimum amount of start-up capital.
5. Medium business.
Its main drawback is its very controversial development within Sweden, which entails some difficulties in the very process of doing business. On the other hand, this disadvantage develops into a tangible advantage for small businesses.
Some conditions of local entrepreneurship
Entering the complex entrepreneurial whirlpool outside your homeland, first of all, you need to remember the main features of doing business in Sweden:
- age – from 18 years;
- no previous convictions;
- citizenship does not matter;
- having a work permit in Sweden Doing business in Sweden
At the same time, if the company is private, it is enough to have one director, but for a joint-stock company, it will take as many as three. It is also important to note that if the capital of the company is more than 1 million kroons, and the staff exceeds 30 people, then one of the managers must certainly be a citizen of Sweden.
The creation of certain types of enterprises will require a license. For example, you cannot do without it if you decide to open a financial institution or venture capital fund. One of the latest innovations is the abolition of audits for companies whose turnover during the year does not exceed 300 thousand kroons.
At the same time, it will not work to evade payment of the required tax contributions, especially since the penalty for this is 40% of the debt.
There are two main taxes – municipal and federal. Income tax is 28% and is the lowest in Europe.
Obtaining a residence permit
A businessman can apply for a residence permit in this country only if he owns at least 50% of the company’s shares and has sufficient funds to support himself and his family.
A residence permit is issued only for two years, which is a kind of trial period for an entrepreneur. If after this time your company not only has not gone bankrupt but is also growing successfully, then there is every possibility of becoming a permanent resident of Sweden.
Small and medium-sized businesses in Sweden will allow you to settle here only if you speak Swedish at a good level, and, at least basic, English. Besides, in the process of obtaining a business visa, you will need to confirm your financial viability, which will allow you to live in the country for a year.