Check the equity capital of a Swedish limited company before the end of the fiscal year

The Swedish Company Law provides that the management board has an obligation to produce an interim balance sheet immediately if there are grounds to believe that the equity capital of the Swedish limited company has fallen below a half of the registered share capital.

Minimal share capital in a Swedish limited company

According to the law the minimal share capital for a Swedish limited company is 50 000 Swedish kronor. For a limited company founded with minimum capital it therefore has to be monitored that equity capital does not fall below 25 000 kronor.

Notifying the auditor of the results of the interim balance sheet

In case of a limited company founded with minimum capital, the auditor has to be notified of an equity capital that has fallen below 25 000 kronor according to the interim balance sheet. Designating an auditor is mandatory in Sweden for a limited company not publicly traded, if the company fulfils two out of three of the following requirements: more than three employees, more than 1 500 000 kronor of balance sheet total, more than 3 000 000 kronor of sales turnover.

Calling a general meeting of a Swedish limited company

The management board has an obligation to call a special general meeting of the limited company to decide, whether the company can fulfil its equity capital requirement or whether the liquidation of the company must be started.

Recommendations for an entrepreneur

1Office recommends clients to turn to an accountant and go over the company’s balance sheet before the end of the fiscal year.