Business Start-up Costs in Sweden

For starting a company in Sweden, an entrepreneur needs a proper evaluation of the costs required in order to have a well-defined plan before making a decision.

1. What is the minimum share capital?

For those who want to set up a private limited liability company in Sweden, the minimum share capital required is 5,600 EUR. If the type of chosen business is a public limited liability company, the minimum share capital is higher, the incorporation requiring 11,200 EUR.

2. What are the Company Registration fees? 

Company formation in Sweden must always fulfill the requirement of being registered. The fees for company registration in Sweden can reach 4,000 Euros, however BridgeWest offers an incorporation package of 2,200 Euros (including all required costs).

3. What are the costs to rent an office space?

Any company in Sweden must provide at registration an office address. If one chooses to rent an office space for that matter, the prices vary according to city and surface from 8 to 24 EUR per square meter per month. The highest prices are in Stockholm.

4. What are the costs for a virtual office if the client will not rent a location?

The alternative for renting a location in Sweden is a virtual office. This will provide a business address, a phone and fax number without the costs for the space or the utilities. Prices are different from one package of services to another, with an average cost of 200 EUR per month.

5. What is the cost of hiring an employee?

Sweden has one of the highest average salaries in Europe. An employee has a medium income of 6,000 EUR per month. In addition to that, the employer pays a social security contribution rate of 31.42% for each employee. The rate for employees younger than 26, the rate is 15.49%.

6. What are the costs of hiring a local accountant?

A local accountant for a Swedish company is a real asset, since experience with the Swedish system is a must for accounting. However, costs are between 300 and 500 EUR per month and the difference is made by the company’s activity, the number of invoices and the other services that are specified in the contract for the accountant.

7. What is the yearly corporate tax?

Businesses that are set up in Sweden are subject to a corporate tax rate of 26.3% of their annual income. This tax has to be paid every year.

8. What is the yearly dividend tax?

The standard rate in Sweden for annual dividend tax is 30%, but there can be exceptions that apply in the case that there is a tax treaty or a directive that specifies so.