A sole trader in Sweden
is the simplest business form that can be opened by local and foreign investors.
The sole trader/sole proprietorship in Sweden, or self-employed individual, works for himself and runs the business as a private person.
The level of liability is the highest among all of the business forms available for registration in Sweden.
Who can open a sole proprietorship in Sweden?
You can open a sole trader in Sweden as a citizen or as a foreign national.
This means that you can register this business form with the authorities in two cases: when you have a Swedish personal identity number and when you do not have the Swedish personal identity number.
The registration for those without a Swedish personal identification number can take place online or via a printed form submitted to the tax agency.
What are the steps needed to open a sole trader in Sweden?
Our team lists the most important stages below:
Submit the registration form with the Swedish Companies Registration Office;
Apply for registration for F-tax and VAT registration purposes; this is done with the Swedish Tax Agency based on the personal identity number or otherwise;
Register the business name with the Swedish Companies Registration Office; this is not mandatory in most cases, however, it can be useful;
Apply for permits, depending in the industry in which you will activate (agriculture, finance, environment, data protection, healthcare or more).
There is no requirement for a minimum initial investment for a sole trader in Sweden.
The business owner is the single physical owner of the business, and he/she is the one fully liable for the debts and obligations of the business.
Personal liability in case of a sole trader means that the founder will be liable with his or her personal assets/money if the business has insufficient capital.
The sole trader will be concerned with fewer matters, compared to a company owner. For example, he will not need to be concerned with payroll in Sweden, as hiring employees will not be an issue. Our team is ready however to discuss matters concerning employment and the treatment of employees for other investors who are interested in setting up different business forms.
What are the costs related to maintaining a sole trader in Sweden?
The following fees should be taken into account for the initial registration as well as for any other subsequent changes:
- Registration: 1,500 SEK;
- Business name change: 1,200 SEK;
- Changes brought to the business activities: 800 SEK;
- Change of owner: 1,500 SEK.
For taxation, a sole trader tax calculator for Sweden is a useful tool.
Alternatively, we can also give you details about other business forms, such as the branch
When you decide to open a company in Sweden you have the option to choose between several business forms, not only the sole trader. Our team can give you details about the other forms of starting a business, such as a limited liability company or a partnership. We also provide guidance if you are ready to change the business form from a sole trader to a corporation.
How is a sole trader taxed?
A sole trader tax calculator for Sweden is helpful for investors who need an answer to this question.
The sole trader is taxed on its profit and preliminary tax is paid in Sweden on a monthly basis.
The owner can deduct a standard allowance of maximum 25% for deductible social security contributions.
The sole trader in Sweden pays the social security contributions, the municipal tax and, in some cases, the national income tax:
The withdrawals made from the business profit once the taxes are paid are the salary that is gained as a sole proprietor.
Using a sole trader tax calculator in Sweden can be useful for business people.
A sole trader can hire employees, however, in this case, a registration as an employer is submitted to the Tax Agency.
Our team can help you incorporate any business form in Sweden.
if you want to open a sole proprietorship in Sweden
, want to change an existing sole trader to another business form, or need information about the incorporation of another form of business.