Non-profit associations and foundations also engage in business activities, although they are usually not started up for this purpose.
COMPANY REGISTRATION PACKAGE
If you are planning to register your company inside Sweden, you can reach us anytime if you have some queries about it.
We have different packages for your new and existing business that includes website creation, data entry software, invoicing software and mobile applications. The pricing of our offered packages will be according the size of the company.
BUY ALREADY ESTABLISHED BUSINESSES
Sometimes it could be a good thing for you to buy already running business rather than start a new one. It is because you will not have to worry about the upfront costs. You will be at least risk by buying already established business by looking at the profit and loss record rather than rough estimates. You can acquire valuable patents or copyrights or have the opportunity to drive a stagnant business in an exciting direction to your expertise. We will guide you through the whole process of buying already running business inside Sweden.
EXPAND YOUR BUSINESS WITH US
Opening a new local branch in the Sweden has its own administration and separate identity number inside Sweden. It will conduct transactions on its own name on behalf of the company. It must have its own managing director to represent the branch. It must be register with Swedish company registration office prior to the commitment to the business operations.
Types and Features:
The branch is not a separate legal person but a part of the foreign company.
A branch is subject to Swedish law and Swedish regulatory decisions with regard to legal relationships that arise in connection with business activities in Sweden;
A branch does not have its own share capital and its assets and liabilities are part of the company's total assets and liabilities.The branch accounts must be kept separate from those of the foreign company. This is partly in order to allow a separate annual report to be prepared for the branch.
The branch's accounts and the managing directors' administration must be reviewed by an authorized public accountant.
Natural person or legal entity?
All kind of companies are legal entities with exception of sole traders. If we are strict to the point a sole trader is not a company but a business run by a person. A legal entity is a limited company that can acquire things, release loans, be sued in the court by the law and run by a staff of natural person. If you own a limited company then there is a clear boundary between you and the company. If you are a sole owner of the business, then it’s not the case. Here, your own finances are interwoven with those of the business in a totally different way. In trading partnerships, each individual partner has personal liability for the partnership’s obligations, in spite of the fact that a partnership is a legal entity. You can read more about owner’s liability for the different company types later in the chapter. Most people starting a business for the first time choose to start as a sole trader, making it easy to get the business up and running in a short time. In most cases the sole owner of the business doesn’t have to register their business name.
A non-registered partnership is a kind of collaboration between several companies that work together on a single business idea which is so called consortia. Its normally a non-registered partnership between a combination of sole traders and limited companies operate as a single entity. For example jointly owned farm operations every company retains liability for its own debts and owns its own assets. Certain liabilities can be jointly held, although this must be stated on the relevant credit documentation.
Starting a business with your Spouses
Are you planning to start a business with your spouse? If you do so then it’s not mandatory to set up a partnership with your spouse. In the other case if you are sole trader then you can share your profit or loss with your wife in income tax return. If you are starting a new business and expecting a loss in the beginning then limited company is not the right path for you. The moment your total losses exceed 50% of share capital, you are only given eight months to restore share capital to its previous level. Fail to do this, and the company must be liquidated, so that you to avoid becoming personally liable for the company’s debts.
Tax subjects or not?
If you are starting your business as a sole trader then you are not subjected to tax. Instead, the company’s owner pays tax on the surplus from business activity. It’s mentioned in the appendix (NE) on the annual income tax return. Partnerships are subjected to certain kinds of taxes like property tax, yield tax from pension funds, and special payroll tax from pension funds which make partnership a certain kind of complicated enterprise. In a partnership, every partner reports their share of profit/loss in an appendix (N3A or N3B) on their own income tax return, while the partnership itself is required to submit a special declaration (form 4). Economic associations are tax subjects, and for tax purposes, function in much the same way as limited companies.
Equal for tax purposes
Partnerships and sole traders are treated same as limited companies if you are owing to all rules in the expansion funds. In the last your company has no great significance from point of taxation. However, there are other factors that make one company significant over another one. For example, the rules concerning dividends and staff welfare benefits favors limited company owners, while the rules for tax allocation reserves and interest distribution benefit sole traders and partners in trading partnerships.
There are two ways to deal with car in a business. You can either own the car and don’t record the costs in the company bookkeeping. You may then deduct a standard amount for business trips (SEK 18.50 per 10 km travelled) on your income tax return. You can allow the company to own the car, and record all car-related costs in the company’s bookkeeping. If you are going with this option, you will have to pay for the car as a company benefit if it’s using privity in a negligible extent. No matter what company you have all the rules apply similarly. You can find the rule in tax deduction chapter.
The financial year
Whether you are a partnership, sole trader or non-register partnership you must have to keep accounts for all the business transactions using the calendar year. On the other hand limited companies economic association can choose to use a split financial year.
You may never loan money from your own limited company. However, there is no corresponding rule governing the other types of company.