An AB in Sweden is the abbreviation of an Aktiebolag, which is a private limited liability company in Sweden. This type of business is the most popular among foreign investors and it is rather simple to establish and run.
At least 100,000 SEK must be provided as an initial capital in order to set up a private limited liability company in Sweden. Contributions are accepted in both cash and in kind. The capital of a Swedish AB is divided into shares and one share must have a minimum value of 100 SEK.
In order to set up a private limited liability company in Sweden, it is mandatory to have at least one founder, regardless of their nationality or residency. The only requirements for shareholders are the age over 18 and no bankruptcy state. Shareholders have an important role in the management structure of a Swedish AB. They can decide upon company rules and can appoint the managers and the accountant.
At least one managing director is necessary in a Swedish AB. If the board of directors is formed by several persons, a chairman has to be appointed. It is the responsibility of the board of directors in a Swedish AB to organize the general meeting of the shareholders at least once a year. Besides, shareholders are the ones who elect the board of directors each year.
A private limited liability company in Sweden must have a registered accountant who has to deal with several services. The accountant of a Swedish AB must issue annual reports and send those documents to the Swedish Companies Registration Office. This has to be done with eleven months after the fiscal year has ended. A balance sheet and an administration report have to be completed in Swedish every year and evaluated by a public accountant in Sweden.
As far as the name of a Swedish private limited liability company is concerned, it must contain the word “aktiebolag” or at least the abbreviation AB. There is no possibility that the name is used for another company in Sweden at the same time. The name has to be registered with the company registration office in Sweden, together with the official address that has to be mentioned in all official documents.