Set Up a Limited Company (Aktiebolag, AB) in Sweden

The limited company is one of the most commonly used business forms in Sweden. Our team can help you set up an AB (LTD) company in Sweden by meeting the current requirements for incorporation.

Quick Facts
Minimum share capital for an LLC in Sweden	SEK 25,000
Minimum number of LLC shareholders	1
Number of directors	1 board member (plus at least one deputy board member if the board has fewer than 3 members)
Mandatory residency requirements to set up an LLC	– A residence permit is required for non-EEA/Swiss nationals who come to Sweden to start a business. – The managing director of the limited company must reside within the EEA. – If all the directors reside abroad, the company needs to have a Swedish representative (an individual registered with the Swedish population register).
Local director required (Yes/No)	No
Time frame for setting up an LLC in Sweden	9 days
Corporate tax rate in Sweden	20.6%
Dividend tax rate	Varies according to tax treaties
VAT rate in Sweden	– 25% general rate, – reduced rates of 12% and 6% for certain types of goods and services (most food temporarily at 6% from 1 April 2026 to 31 December 2027)
Number of double taxation treaties (approx. )	About 80
Annual meeting required	The limited company is obliged to hold an annual general meeting.
Accounting and filing requirements	An LLC must maintain accounting records and file the annual financial statements.
Foreign-ownership allowed	Yes
Tax exemptions or incentives for setting up an LLC in Sweden	Regional investment and transportation grants are available, along with an R&D tax deduction, an expert tax relief scheme, and financial support for hiring unemployed individuals (all subject to conditions)
Additional licenses	Permits are required according to the company's activities (finance and insurance, healthcare, manufacturing, food, lodging, etc.)

What are the characteristics of the LLC in Sweden?

The limited company has two forms – private and public. There are several important differences between them and our team summarizes these below:

Shares: the private limited company cannot sell its shares to the public, and the public limited company can do so;
Minimum capital: SEK 25,000 for the private limited company and SEK 500,000 for the public one;
Members: at least 1 for the private company and at least 3 for the public company;
Management: the private company has an optional managing director, and it is recommended to have an auditor (this is only mandatory in some cases), while the public company must have a managing director as well as an appointed auditor.

What are the steps for opening a limited company in Sweden?

When setting up a limited company in Sweden, the steps are the following:

Perform a name availability check: this is done with the Bolagsverket, the Swedish company register. Name verifications are handled free of charge, however, a name cannot be reserved in advance – it is examined and registered together with the company registration application;
Draw up the founding documents for the company: these are the Memorandum and the Articles of Association, among others (see below for details);
Submit the minimum capital: as mentioned above, a minimum capital is required to open an AB company in Sweden. A bank statement is issued upon the provision of capital;
Appoint the company’s Board members: this is done by observing the requirement to have at least half of the board members (and the managing director, if appointed) resident in the European Economic Area;
Submit the application: once all the above are taken care of, the formal application for company registration in Sweden is submitted to the Bolagsverket.

The infographic below presents a summary of the steps:

What documents do I require to open an AB company in Sweden?

The following set of documents is required by those who open any type of limited company in Sweden (public or private):

The Memorandum (the foundational act) – this must be signed by all founders;
The Articles of Association;
The bank certificate which serves as proof that the minimum capital has been provided for;
The company registration application form (duly filled in);
The identification details for the company’s shareholders and management structure (including those of the company’s beneficial owners);
Proof of registered office in Sweden.

Please keep in mind that other documents may be required on a case-by-case basis, including sworn document translations.

How long does it take to open an LLC company in Sweden?

The authorities issue the company registration certificate within 5 to 15 working days. When selecting one of our company formation packages, you can expect to complete the process within 1 to 3 weeks.

Our teaminvites you to watch a video about this type of company:

How much does it cost to open an AB company in Sweden?

Our company formation packages are priced between SEK 35,000 and SEK 50,000 (between 3,156 and 4,508 EUR, approximately).

How is the Swedish LTD taxed in 2026?

When setting up a limited company in Sweden, one of the most important issues to take into account is how the company will be taxed.

The LLC in Sweden is subject to the following taxes:

20.6% corporate income tax rate;
30% Swedish withholding tax on dividend distributions from Swedish companies (for foreign companies);
25% standard value-added tax and two other reduced rates of 12% and 6% plus a 0% rate for certain types of goods and services;
31.42% aggregate social security contributions paid by the employer;
4.25% standard stamp duty payable on the purchase or transfer of real estate.

All companies in Sweden must prepare an annual report and file it with the Swedish Companies Registration Office.

If you would like to start a company in Sweden in 2026, do not hesitate to contact us.

Johan Olehäll, Lawyer · 2 October 2026Johan Olehäll has a LL.M. (Master of Laws) and is founder of VS Legal Counsel.