Nordic countries are considered to be all-time leaders in life quality ratings. In Sweden a low level of corruption goes together with high fiscal tax take. For instance, VAT accounts for 25% and progressive personal income tax starts from 30%. In accordance with that Sweden cannot be treated as an offshore in a traditional understanding. There is no any common sense to set up a company for tax avoidance here.
On the other hand, economy depends on export. Its share accounts for not less than 40% of GDP. It follows thence that authentic goods and service industries are competitive on global market. If counterparts from a public held company carry on business outside its national territory, a federal corporate income tax is not charged.
Received dividends are not imposed by taxes on the condition that profit is gained from a resident company. It is essential to remember that evasion of taxes in Sweden is hardly possible.
Advantages of setting up a business
Registration of a company in Sweden is profitable due to the following reasons:
- registration procedure is rather transparent and quick, as Scandinavian have a reputation for being frank;
- market entry to one of the most innovative countries of the world; IT-technologies and biomedicine are in the process of rapid development. In addition to that, economic realms are characterized by scientific content;
- Sweden is one of the best places for trading activities, because revenues of an average Swede are significant – per capita gross domestic product constitutes more than 40,000 U.S. dollars.
Special aspects for registration of a company in Sweden
It is preferable for an entrepreneur to get a Swedish residence permit. It is conditioned upon legislative requirements according to which:
- Swedish residents and those who live in other Scandinavian countries do not need any residence permit;
- EU citizens are allowed to live on the territory of the country, but it is essential to register oneself in a migration service during three months;
- citizens of any countries are obliged to get a residence permit before starting the process of registration;
There are several types of business entities that can be set up in Sweden:
- individual enterprise is considered to be profitable due to simplicity of bookkeeping and there are no requirements regarding the lower limit of registered capital; in addition to that, company profit is imposed by a personal income tax, which is higher rated in Scandinavia than a corporate tax;
- limited partnership company is equivalent to ЧАО in Russia; legal capital should constitute no less than 50,000 SEK (5-6 thousands US dollars);
- a private limited company most often has one or two founders, legal capital should constitute no less than 50,000 SEK;
- shares of a state company are obliged to circulate in free trade; therefore, a legal capital should constitute no less than 1,5 million SEK (50-60 thousands US dollars);
- the main advantage of trading partnership constitutes in the absence of requirements regarding the lower limit of registered capital; In such case every partner is liable for company debts, which is not profitable for foreign citizens.
- in a limited liability partnership company one of the business partners is personally liable for partner’s responsibilities; at the same time the other one (others) is only partially responsible;
- an establishment of a foreign company is allowed to possess one branch business in a country; this type of business cannot be registered as a separate legal entity, but only as a brunch of a mother firm.
The whole procedure of setting up a business takes from 5 to 8 workdays. With the help of “Prifinance” staff workers this procedure is going to be successful with minimum timeout from daily routine.