Half the board must live in the EEA · exemption possible
Details
At least half of an AB’s board members must be resident in the EEA unless Bolagsverket grants an exemption. A board with fewer than three members also needs a deputy member.
Business Sweden describes a test market and networks for international businesses. Use local trials to test actual demand before committing to a larger launch.
Most foreign investors choose an AB, which separates Swedish liabilities from the parent. A branch can suit a launch phase because early losses may offset the parent’s taxable profit.
A foreign company can trade in Sweden through a registered branch instead of a subsidiary. Ongoing or recurring activity needs registration; short-term cross-border services from the EEA may not.
Most newly formed limited companies must report the individual who ultimately controls them. Include this in the formation process, not just the shareholder register.
Branch registration needs the parent’s incorporation certificate, latest two annual reports, a no-bankruptcy certificate and signing authority, and Bolagsverket can ask for Swedish versions. A name too close to an existing one also holds things up.
Founders from outside the EU must run the business, show industry and business experience, and fund it with their own money. Permits last up to two years and first applications are made from abroad.
For a limited company funded in cash, the bank confirms the paid-in capital electronically. Contributions in kind require an approved or authorised auditor’s valuation instead.
Information on this page is compiled from official and public sources, linked and dated next to each item. It is general information, not legal, tax or financial advice, and rules change. Please confirm with the source or a qualified adviser before acting. ExpandUs Global accepts no liability for decisions made using this information.
