Expanding your business into Sweden?
You need to be compliant in Sweden when expanding your already existing business.
We can provide our international clients with full support concerning Accounting, Tax, Payroll and statutory reportings
Register a company
You can read more here about register your company in Sweden.
Foreign-based companies usually choose between setting up one of the two main business structures mentioned below, both of which need to be registered with the Swedish Companies Registration Office:
- Limited Liability Company – a subsidiary, also called limited company (Swe: Aktiebolag)
- Branch – a divisional office of the foreign based company, not a separate legal entity (Swe: Filial)
If possible, you’ll find that employing a local company signatory will ease your business here in Sweden.
A local company signatory with a Swedish BankID can sign electronically, improve digitalization, cut down Swedish Authorities’ processing time and help with online banking.
When conducting business activity in Sweden through a branch or a limited company you are required to maintain accounting records according to the Swedish Bookkeeping Act.
Bookkeeping is part of the accounting. All business transactions must be recorded on a current basis and there must be supporting vouchers for all accounting entries. The bookkeeping involves registering all transactions in a chronological and systematic order.
Limited companies and branches are required to comply with Swedish bookkeeping regulations. A branch must keep its accounts separate from those of the foreign based company.
You have a statutory responsibility for the archiving of accounting information.
The accounting data need to be adequately archived, which means stored in such a way that it does not risk being destroyed or lost under normal circumstances. It needs to be clear, accessible and in order. Meaning, easily accessible and stored in a clear manner. Authorities shall without difficulty or delay be allowed access to the information, if necessary.
If original paper documents are transferred to digital format, the original paper documents still need to be archived for three (3) years from the end of the calendar year in which the financial year was completed (Swedish Bookkeeping Act 7:6).
The accounting must be in a definite form. Which means that the accounting may not be deleted or otherwise made illegible.
In Sweden it is therefore very common to use an accounting software since you cannot prepare your bookkeeping in a spreadsheet such as Microsoft Excel.
The accounting data, both paper documents and machine-readable media shall be stored in Sweden.
However, in certain cases it may be stored abroad, outside of Sweden, either temporarily or permanently. You need to identify all types of accounting data, its format and where servers are located in order to determine if storage abroad is possible, and then if it needs to only be reported to Skatteverket, the Swedish Tax Agency or if permission is to be requested from the Swedish Tax Agency.
A branch is required to maintain accounting records in Sweden for the operations conducted in Sweden.
When registering your company for taxes in Sweden a specific tax account is set up with Skatteverket, the Swedish Tax Agency.
The tax account shows all of the tax transactions such as tax payments, VAT returns, withheld taxes, social security contributions, preliminary tax instalments, final tax assessment etc.
Value added tax, VAT
VAT is paid on almost all consumption of goods and services. In Sweden we have different VAT rates depending on type of goods or service. The VAT treatment is rather complex and depends on several variables.
If you perform economic activities, you will most likely add VAT on your sales which you then need to pay to the Swedish Tax Agency in connection with filing a VAT return.
Also, in most cases you will pay VAT on your purchases and you might have the right to deduct that VAT.
Corporate income tax, CIT
The CIT is calculated annually and a corporate income tax return is filed with the Swedish Tax Agency.
Preliminary tax assessments are calculated based on last year’s corporate income tax return, split into monthly instalments.
The preliminary tax payments are credited against the final tax liability. If preliminary tax payments exceed the amount of final taxes due, you will be refunded.
If you have employees you must register as an employer before you process the first payroll run.
When you are registered as an employer with the Swedish Tax Agency you must file an employer’s contributions and PAYE tax return every month. These are also payable upon filing deadline.
We tailor our payroll services to your needs.
When preparing payroll runs we need access to and we process a lot of personal data. It is of the utmost importance that we do so in accordance with applicable laws and that the details have been agreed upon before we start providing our services.
In Sweden it’s very common for employees to receive monthly salaries and absence is usually deducted from the salary.
Swedish employees may request allowances from Försäkringskassan, the Swedish Social Insurance Agency, to cover some of the salary deductions.
It is also the employer’s responsibility to make sure each employee takes their vacation, at least 20 days of vacation each year, according to the Swedish Annual leave Act. Excess days can be saved but needs to be taken before five years has passed.
PAYE tax return
After each month’s payroll run you will need to file the PAYE tax return with the Swedish Tax Agency.
Year end closing
In connection with the vacation year end, holiday pay calculations are to be made. Some companies choose to grant their employees access to their vacation days during the running year and some companies let their employees gain access to their vacation days the following year.
We at MoveByNumbers are not HR specialist, we do not draft employment agreements. We are here to assist you with processing Swedish payroll. We can refer you to HR specialists within our network if you wish.
Depending on your company’s need, or perhaps your stakeholders’ requirements, we can prepare periodic financial reportings, either monthly or quarterly.
The financial overview is always available online with real time cloud accounting, also showing the reconciled periodic reportings.
Year end closing
In preparations of the financial year end closing we arrange for a meeting where we discuss your business and plan for the year end and year to come.
We share a checklist of the information required and we review the year gone by; how did it go, did anything particular happen or is expected to happen?
Every limited company in Sweden must prepare and file an annual report with Bolagsverket, the Swedish Companies Registration Office, every year. This rule also applies to dormant companies and companies in liquidation.
The annual report of a Swedish branch and/or its foreign based company may need to be filed with Bolagsverket, depending on if the foreign based company is situated within the European Economic Area (EEA) or not.
The management of the company is responsible for the preparation, the content and the publication of its Annual Report.
Statistikmyndigheten, Statistics Sweden, supply users and customers with statistics for decision making, debate and research. The statistics are based on information provided by companies, government agencies and private individuals.
Upon request, your company is required to report statistics to Statistics Sweden. The requests relate to different subjects and have different reporting frequencies.
MoveByNumbers perform accounting and payroll services in Visma Online software
- Receipt management, electronically
- Reconciliation of the accounts
- Balance sheet and income statement
- Cash flow statement
- VAT returns
- Income tax returns
- K10 form for individual shareholder
- PAYE tax returns
- Salary slips to employees, electronically
- Year end closing and holiday pay calculations
- Financial Year end closing
- Annual report according to K2 or K3
- Sustainability reporting according to NSRS
- Statistics Sweden
- Cash flow forecasting
- Goal achievement process
- Identifying business opportunities
- Business update meetings, in person or via video
- Business plan
- Budget report
- Identify software solution need
- Select API
- Set up integrations
- User access and proxies
- Run through of software solution
Starting business in Sweden?
We can assist with setting up a company with Swedish shareholders. If foreign shareholders, we have other service providers within our newtork.
Accounting in Sweden
We offer accounting and consulting services in Sweden