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SeSweden Subsidiary.






Country Capital



Swedish krona (SEK)

The first step to any expansion is setting up a subsidiary so that you can hire employees and add them to your payroll. Sweden has multiple business structures you can choose from when setting up your subsidiary, but the incorporation process is similar to other European Union (EU) countries. Although incorporation can seem simple, the process often takes months, and you can lose time that you could otherwise use to run your business.

G-P offers a convenient alternative to establishing a Sweden subsidiary. We will get your company running in a matter of days instead of months. And as the Employer of Record, we will shoulder all risk so that you can focus on your business without the pressure of compliance.

How to Set Up a Sweden Subsidiary

Once you decide to incorporate in Sweden, you’ll need to consider several factors that could impact where you will base your headquarters and which languages your employees will need to know. You should also consider business factors such as your industry and any important pre-existing trade relationships.

Sweden consists of islands and coastal cities, so deciding on the right location is crucial to the life of your new branch. Most of the population speaks Swedish, but you’ll find some small pockets of Sami- and Finnish-speaking towns. However, a large proportion of the population is fluent in English. The country has a socially progressive culture, and many of its residents are immigrants. Therefore, Sweden is known to be welcoming to foreigners and embraces multiculturalism.

The most common type of subsidiary is a private limited liability company. It will take around two weeks to officially set up this type of Sweden subsidiary and about four weeks to open bank accounts in the country. The steps to start a limited liability company include:

  • File articles of association
  • Register a company name
  • Register for taxes
  • Appoint a board of directors and a managing director
  • Create rules of procedure for both the board and director
  • Determine who has the power to sign

Sweden Subsidiary Laws

Sweden’s various subsidiary laws differ based on whether you incorporate as a private or public limited liability company.

A private limited liability structure needs a board of directors with at least one individual. If you have more than two directors, you’ll need to appoint one deputy director. Your board of directors will need at least one Swedish resident to act as an agent for service of process on the company’s behalf. Private limited liability companies also require a minimum of 25,000 SEK as starting share capital.

A public limited liability requires a minimum of 500,000 SEK as share capital and at least three board members. Sweden subsidiary laws mandate these companies to have a managing director and an auditor. A public limited liability company can sell shares to the public, while a private limited liability company cannot.

Benefits of Setting Up a Sweden Subsidiary

Once you set up a Sweden subsidiary, you can legally operate your business in Sweden. A limited liability company can also protect both your parent company and new subsidiary. The parent company will not be liable for any losses or litigation incurred by the subsidiary, and the subsidiary can operate independently, with its own company culture and laws.

Choosing Sweden subsidiary outsourcing services from G-P offers even more benefits. As an alternative to establishing a Sweden subsidiary, we’ll allow you to start working without incorporating first. We can hire employees and assign them to work for you, and we’ll handle everything from payroll to compensation and benefits.

Other Important Considerations

If you decide to set up a Sweden subsidiary yourself, you should plan to spend time and money throughout the process. You will have to travel to Sweden and back multiple times during your incorporation. Money is also a crucial factor since you will have to budget the right amount for travel and the costs of incorporation.

Let G-P Help With Your Expansion

When you’re looking for an alternative to establishing a Sweden subsidiary, choose G-P. We offer everything you need to start operating in Sweden, without the risk of noncompliance. Contact us today to learn more.


THIS CONTENT IS FOR INFORMATIONAL PURPOSES ONLY AND DOES NOT CONSTITUTE LEGAL OR TAX ADVICE. You should always consult with and rely on your own legal and/or tax advisor(s). G-P does not provide legal or tax advice. The information is general and not tailored to a specific company or workforce and does not reflect G-P’s product delivery in any given jurisdiction. G-P makes no representations or warranties concerning the accuracy, completeness, or timeliness of this information and shall have no liability arising out of or in connection with it, including any loss caused by use of, or reliance on, the information.

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