For many business owners with a Swedish Aktiebolag (AB), opening a business bank account in Sweden is not as simple as it might seem. Swedish banks have strict compliance requirements, and business owners often face delays or even rejection if their documentation isn’t up to par. 

Which banks to choose: Pros and Cons

When it comes to opening a business bank account for your Swedish AB, not all banks are created equal. Sweden’s banking landscape offers several options, but each comes with its own set of pros and cons. The major players include SEB, Nordea, Swedbank, and Handelsbanken, all of which have a strong local presence and offer services tailored to businesses. However, the choice of bank can affect how smooth your experience will be.

• SEB is often favoured by businesses for its dedicated corporate banking services and digital tools, but its onboarding process can be strict, particularly for companies with foreign owners.
• Nordea is known for its extensive international network, making it a solid choice for businesses with cross-border operations. However, their Know Your Customer (KYC) requirements are rigorous, and delays are common if documentation isn’t perfectly in order.
• Swedbank offers comprehensive packages for small and medium-sized businesses, but their services might be more limited for companies seeking complex international transactions.
• Handelsbanken is known for providing personalised service and flexible banking options, but this can come at a cost in terms of higher fees for certain services.

Digital banking options

In addition to traditional banks, Sweden has seen a rise in digital-only banking options and fintech solutions that may appeal to businesses looking for more flexibility and convenience. Companies like Revolut Business, Wise (formerly TransferWise), and N26 offer digital banking services that allow businesses to open accounts without the need for physical visits to a branch, making the process quicker and more streamlined.

However, while these digital banks provide convenience, they may not offer the full range of services or the same level of security as Sweden’s traditional banks. Some digital banks may not issue local IBANs, which could limit their usability for certain transactions within Sweden, especially when dealing with local suppliers or government bodies like Skatteverket. Additionally, digital banks typically lack the personal relationship management services that traditional Swedish banks offer.

The challenge

Swedish banks require detailed documentation to verify the legitimacy of a company. This process can become overwhelming, especially for non-Swedish owners unfamiliar with the local banking system. Key obstacles include:

• Complex documentation requirements: Banks typically request a range of documents, such as certificates of incorporation, shareholder details, and proof of business activities. Each bank may have slightly different demands, and failing to meet these can slow down or block your account opening.
• Language barriers: Many banks require that documents be submitted in Swedish or translated by an approved service. For business owners not fluent in the language, this can add unnecessary complexity and expense.
• KYC and compliance checks: Sweden has stringent Know Your Customer (KYC) regulations. If any part of your paperwork is incomplete or unclear, the bank might reject your application outright or demand additional clarification, dragging out the process.