Set up a branch in Sweden
Registering a branch in Sweden is a structured process, but attention to documentation and compliance with Swedish regulations is essential for a smooth setup.
Set up a branch in Sweden
Registering a branch in Sweden is a structured process, but attention to documentation and compliance with Swedish regulations is essential for a smooth setup.
Key steps and considerations in setting up a branch in Sweden
To register a branch (filial) with the Swedish Companies Registration Office (Bolagsverket) is mostly well structured but there are certain requirements and other key aspects business owners need to know when registering a branch in Sweden.
Branch registration
- The managing director does not need to be a Swedish resident but must be a natural person (not a legal entity). If the managing director resides outside the EEA, additional requirements may apply.
- The branch must have a registered office address in Sweden where official correspondence can be received. This address must be a physical location in Sweden, not a P.O. box.
- All documents in a foreign language must be translated into Swedish by a certified translator.
Accounting and auditing
- The branch must maintain separate accounting records for its Swedish operations in accordance with the Swedish Annual Accounts Act.
- Annual financial statements of the parent company must be submitted to Bolagsverket, translated into Swedish if necessary.
- Depending on the size and activities of the branch, an auditor may be required. For smaller branches, an auditor may not be mandatory unless the parent company’s operations exceed certain thresholds
Tax registrations for compliance
- Register the branch with the Swedish Tax Agency (Skatteverket) for tax purposes, including corporate tax, VAT, and employer registration (if hiring employees)
- Obtain an organization number from Bolagsverket, which is required for tax registration.
Additional requirements for non-EEA companies
Non-EEA (European Economic Area) companies face additional requirements when registering a branch in Sweden to ensure compliance with Swedish regulations.
Resident agent:
- If the managing director of the branch resides outside the EEA, the branch must appoint a resident agent in Sweden who is authorized to receive legal documents on behalf of the branch.
- The resident agent must be a natural person resident in Sweden or a legal entity registered in Sweden.
Certificate of solvency:
- Non-EEA companies may be required to provide a certificate or statement confirming that the parent company is solvent and not in bankruptcy or liquidation proceedings in its home country.
Additional Documentation:
- Non-EEA companies must provide legalized or apostilled documents (e.g., certificate of incorporation, articles of association) to verify their authenticity.
- Some documents may require notarization or certification by the home country’s authorities.
Register a branch in Sweden with 1Office
Cost-effective
Lower setup and operational costs compared to establishing a subsidiary.
Market access
Access to Sweden’s stable economy, skilled workforce, and proximity to other Nordic and EU markets.
Simplified structure
No need to create a separate legal entity, as the branch operates under the parent company’s framework.
Reach out to get a smooth branch registration in Sweden
Business owners should weigh the unlimited liability of a branch against the limited liability offered by a subsidiary, depending on their risk tolerance and business goals along with other services they may require. We provide comprehensive support all around so your business can start in a compliant way.
Get in touch with our business advisor
Tõnis Jõgeva
Business Solutions Advisor
“As a Business Solutions Advisor in the Finnish and Swedish markets, I have witnessed exceptional results that our clients have achieved. Our expertise in understanding the complexities of local regulations and providing tailored financial solutions has enabled businesses to thrive and make informed decisions, ensuring their long-term success in these markets.”
Tel:+46 760 265 228
E-mail: tonis.jogeva@1office.co
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