If you are a foreign entrepreneur or consultant looking to work in Sweden, understanding your business structure options is crucial. Below is a breakdown of the three main paths.
3 structure options
Umbrella Company
The simplest route. You become an employee of an umbrella company that handles all admin while you focus on your work. No accounting needed, no tax planning complexity. Start instantly.
Sole Proprietorship (Enskild Firma)
You are the sole owner. Takes about 2 weeks to set up through Skatteverket (Swedish Tax Agency). You will need bookkeeping and handle private income tax reporting plus VAT. Tax planning is possible.
Limited Company (Aktiebolag)
Requires minimum 2 board members. Setup takes 2-3 weeks if you use a shelf company, or you can buy a ready-made company from accounting firms for instant start. Most admin-heavy option with bookkeeping, company tax reporting, annual reports, and K10 forms for dividends. Tax planning is possible.
Think about:
- Sales threshold: Up to 120,000 SEK/year is VAT exempt
- Umbrella company fees: Typically a flat monthly fee or percentage of gross pay, depending on the provider
- Business insurance (Företagsförsäkring): Essential when running your own company
Want to read more about starting and running a business in Sweden? Check out our comprehensive guide on doing business in Sweden.
Need personalized guidance for your situation? Contact us using the form below and we will help you choose the right structure for your business.
