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Local business incentives - Legal forms of companies - Registration and licensing procedures - Legal framework - Foreign exchange control - Regulations concerning equity investment - FDI inflows - Expertise of the political risk

Local business incentives

For investments guidance and financing, foreign companies benefit from the same advantages as local companies. The NUTEK ( Swedish national centre for industrial and technical development) is the competent organisation regarding this matter. As for regional incentives, subsidies are granted depending on the area where the company is located. Sweden is divided into two zones (1and 2). In zone 1, ceiling subsidies reach 35% whereas in zone 2, they reach 20%. Finally, the Almi Foretagspartner Organisation, which depends on the Department of Industry and Trade, aids small and medium-sized companies in terms of guidance and loans.
The Invest in Sweden Agency(ASI) also helps foreign investors through setting up steps.


Legal forms of companies

Form Number of partners/shareholders Minimum and/or maximum capital Liability Registration fee Release of financial documents
Aktiebolag (AB) is similar to a Public Limited Company No minimum At least SEK 100,000.
500,000 for companies making invitation to public savings. Capital is totally subscribed and released.
Liability is limited to the amount contributed. About 1% for an AB with a SEK 100,000 capital. Yes
Enskild näringsidkare is a sole proprietorship 1 No minimum Liability is unlimited. About SEK 1,000 No
Handelsbolag or HB is a general partnership. Minimum 2 partners No minimum capital. Partners' liability is joint and several towards third parties. Total cost varies from SEK 5,000 to 8,000. No
Kommanditbolag is a limited partnership. 1 or several partners No minimum capital. Liability is limited to the amount contributed, in accordance with the other partners. However, a shareholder must have an unlimited liablility. Total cost varies from SEK 5,000 and 8,000. No

Registration and licensing procedures
Registration procedures only apply to the AB. Status must be drawn up in Swedish and are composed of a Memorandum of Association and Articles of Association.
Status registration requires to provide the statutory shareholders meeting's minutes and a Swedish bank certificate attesting deposit of the minimal amount of the registered capital. Status and registration must be made with the Companies Register (Patent och Registreringsverkert, PRV Bolag).
Branches of foreign companies must be also registered with the Companies Register. Documents to include are certified copies of the foreign company's status and a document attesting the identity of managers.

Foreign exchange control
There is no exchange control in Sweden. Free conversion of currencies is carried out as well as the right to transfer capital and profits.

Regulations concerning equity investment
A majority holding interest in the capital of a Swedish company is legal.  

Foreign Direct Investment inflows in Sweden

FDI inflows 2003 2004 2005 World rank (*)
FDI inflows (USD million) 4 986 1 269 13389 64/141
Source : UNCTAD - World Investment Report
Note : (*) World Rank = UNCTAD Inward FDI Performance Index. It is a measure of the extend to which a host country receives inward FDI relative to its economic size. It is calculated as a ratio of the country's share in global FDI inflows to its share in global GDP.


Last modified in 2006 - ongoing update
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