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SeSweden Subsidiary.






Country Capital



Swedish krona (SEK)

Sweden has multiple business structures companies can choose from when establishing a subsidiary, and although the incorporation process is similar to other European Union countries, it can often take months to complete, potentially impacting your business timelines and strategic growth initiatives.

However, G-P offers an alternative. Instead of opting for the conventional subsidiary route in Sweden, our Employer of Record solution can expedite your entry — no new entities required — enabling you to begin operations in minutes instead of months.

How to establish a Sweden subsidiary

Before you decide to incorporate in Sweden, you’ll need to consider several factors that could impact where you will base your headquarters. Companies should also consider business factors such as industry and any important preexisting trade relationships.

Most of the population speaks Swedish, but you’ll likely encounter some Sami- and Finnish-speaking regions. However, a large proportion of the population is fluent in English.

The most common type of subsidiary is a private limited liability company. It will take around 2 weeks to officially establish this type of Sweden subsidiary and an additional 4 weeks to open bank accounts in the country. The steps to establish a limited liability company include:

  • Filing articles of association and memorandum of association
  • Subscribing and paying for shares
  • Registering a company name
  • Registering for taxes
  • Appointing a board of directors and a managing director
  • Creating rules of procedure for both the board and director
  • Determining who has power of signature
  • Registering beneficial ownership information

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 1 individual. If you have more than 2 directors, you’ll need to appoint a deputy director. Your board of directors will need at least 1 Sweden resident to act as an agent for service of process on the company’s behalf. Private limited liability companies also require a minimum of SEK 25,000 as starting share capital.

A public limited liability requires a minimum of SEK 500,000 as share capital and at least 3 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 establishing a Sweden subsidiary

Once you establish a Sweden subsidiary, you can legally operate in Sweden. A limited liability company can also protect both the 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 operational practices.

Other important considerations

If you decide to establish a Sweden subsidiary, you should plan for additional expenses along the way. You may need to travel to Sweden multiple times during the incorporation phase as well.

Enter new markets with G-P — no new entities required.

Beat the competition and enter new markets in minutes, not months, with G-P. We’ve paired our industry-leading team of in-region HR and legal experts with our #1 Global Growth Platform™ to help you hire compliantly in 180+ countries, eliminating the need to set up local entities or subsidiaries.

Get in touch today to learn more about how we can streamline the global growth process.


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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