Starting a business in a new market doesn’t necessarily have to be difficult when you know about each country’s specifics. This is where 1Office team can help having established expertise in Sweden, Finland UK and Estonia.

Below you can find a brief summary of each markets specificity. This is not an exhaustive list so should you have any additional questions please don’t hesitate to contact the experts at 1Office further information.

Sweden

• It is not easy to start a local business in Sweden without additional help. You require a bank account for the deposit of the capital and applying for a bank account is a time consuming process.
• You can enter the Swedish market without starting a business, however in this scenario Sweden will be considered as a permanent establishment and you will be liable to pay the local taxes. Before you can start invoicing the company must have F-skatt tax registration and a VAT number.
• Calculating, paying and declaring taxes is a job only suitable for an experienced bookkeeper or accountant. The trial and error method is not recommended as this could bring additional hefty fines which in turn can lead to debt. Companies who do not declare the annual report or income report will also be fined.
• Being in debt is a very serious matter in Sweden. Should the owners or board members have any debts, it can be difficult to set up a company or even open a bank account. The National Tax & Customs Office in Sweden requires proof from the owners and board members that they have no debts.
• There are strict rules to follow when hiring employees and creating collective agreements. Trade Unions also play a significant role in Sweden so this is a factor that needs to be considered when setting up a company.

Finland

• When starting a business in Finland you need to be aware of several registries and how to register your business with them. The three main important registries are the income tax advance payment registry, VAT registry and the employers’ registry.
• You must provide the prognosis of the company’s income to the income tax advance payment registry. The Tax and Customs Office will calculate the amount of tax that needs to be paid based on the prognosis you have provided, which in turn must be paid in advance. Once the actual annual income has been established you are required to either pay an additional amount, or receive a rebate.
• Same as in Sweden, the business needs to consider the cultural differences of employees, collective agreements and trade unions.
• You are obliged to visit the bank in person in order to open a bank account. Opening the bank account may prove to be difficult if the company, or the owners or board members have outstanding debts.

United Kingdom

• It is difficult to open a bank account in the UK if you are not a resident of the country. The management board member is often required to have a UK residential address and a social security number to be able to open a bank account.
• Bookkeeping without professional help is complicated due to the complex UK tax legislations.
• If the business has been set up and the bank account has been opened, you are required to register as a VAT registered company if the business’ annual turnover is more than £83,000. To apply for a VAT number the company must prove that its permanent establishment is based in the UK.

Kristiina Aljas-Saarma
1Office Group Sales Director
sweden@1office.co