Types of Swedish Companies

The Swedish corporate environment is highly competitive, as small businesses quickly evolve into mid-sized companies. The most common type of company is the Swedish limited liability company, even though Sweden jurisdiction offers other types, suitable for different purposes.

Open a Private limited liability company in Sweden - AB (Aktiebolag)
The Swedish limited liability company is often considered the most suitable company type, as it is used all over the country, especially preferred by foreigners. The private limited liability company cannot sell its shares on the stock market. The company can be formed by natural persons or legal entities, which must provide a minimum capital of 50.000 SEK (Swedish Krona, the currency of Sweden). Private limited companies must have a board of directors of which at least one must be a representative director. The liability of the members is limited to the amount of capital invested by each one.

Open a Public limited liability company in Sweden - AB (publ) (Publikt aktiebolag)
The public limited liability company is similar in many ways with a private one, also having a board of directors, with a member's liability depending on the capital invested and also being established by natural persons or legal entities. However a public limited liability company may issue its shares on the stock market and must provide an initial minimum capital of 100.000 SEK.

Open a Limited partnership in Sweden - KB (Kommanditbolag)
Partnerships can be founded by at least two members, who can be natural or legal entities, Swedish or not. There is no need for a minimum initial capital and at least one member is a general partner, having full liability for the companies' debts and obligations, and at least one member is a limited partner, his or her liability being limited to the amount of capital invested. The general partner, however, has the right to interfere in the management of the partnership, benefiting from the profit, while the limited partner has a lower authority.

Open a General partnership in Sweden - HB (Handelsbolag)
As the Swedish limited partnership, a general partnership may be established by two or more persons, or legal entities, national or foreign, and does not require capital. The liability of the partners is not distributed as in the limited partnership, as all the partners are general and share full liability to the extent of their personal assets.

Set up a Sole proprietorship in Sweden - Enskild firma
The sole proprietorship acts as a Swedish limited company, being designated for business at a small scale, run and represented by one person. The sole proprietor is fully liable for his or her company obligations, also being able to run decisions as desired, and use the profit as desired. In order to found a sole proprietorship there is no minimum capital required.

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