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Open a Sole Trader in Sweden

Open a Sole Trader in Sweden

Out of all business entities available, the sole trader is the simplest and easiest to register in Sweden. This is a one-person company which enables the owner to undertake specific activities only. It is also characterized by other particularities described by our Swedish lawyers below.

Who can operate a sole proprietorship in Sweden?

Both Swedish and foreign citizens can set up sole traders in this country. The main aspect to consider when it comes to the second category of businesspersons is that they need residence permits to register such an entity.

The main requirement that applies to both types of entrepreneurs is to first obtain personal identification numbers with the Tax Agency before applying for registration as sole traders in Sweden.

Feel free to ask our Swedish lawyers about the requirements to meet to become a sole trader in this country as a foreign national. We can also help you apply for a residence permit.

Conditions to become a sole trader in Sweden

Unlike opening a company in Sweden, the creation of a sole proprietorship is much simpler and it is subject to the following requirements:

  • the person must be at least 16 of age;
  • the applicant must have not been declared personally bankrupt;
  • the applicant must have not been convicted of any crime related to trading activities.

While Sweden enables youngsters to operate as sole traders, this category is seldom met. However, it comes to demonstrate that this is one of Europe’s greatest countries to move to as an entrepreneur.

If you are a foreign citizen interested in obtaining a personal identification number to register as a sole trader, you can rely on our accountant in Sweden for this step.

Steps to open a Swedish sole trader

The procedure of setting up a sole proprietorship in Sweden is quite simple and implies the following steps:

  1. filing an application with the Swedish Tax Administration office in your city;
  2. obtaining a VAT number;
  3. obtaining a business name with the Commercial Register (this step is not mandatory);
  4. registering as an employer, which is also an optional step.

For this purpose, you need to file the F-Form and VAT Registration form in order to have your sole trader in Sweden fully operational.

With respect to the registration of a business name, it can be helpful if you plan on having your trade name registered as a trademark.

You can rely on our law firm in Sweden if you need complex services in relation to this simple business form.

Fiscal responsibilities of a sole trader in Sweden

Just like any other business, a sole proprietorship must also pay taxes in Sweden. Among these, we mention the following:

  • the income tax;
  • the value added tax;
  • social security premiums.

You should also know that any business expenses will come out of your pocket, as there is no legal distinction between your person and the company, such is the case of a private limited liability company, for example.

If you need accounting services for your business, our CPA in Sweden is at your disposal. We can also assist if you are a sole trader in Sweden and need support in tax matters.

Companies operating in Sweden

Sweden is home to a wide array of businesses in both traditional and niche sectors, such as retail, respectively, naval construction. According to the latest information:

  • there are 1,108,959 companies registered in Sweden at the level of 2023;
  • 457,937 enterprises operate in the services sectors, and 184,642 in finance, insurance, and real estate;
  • 81,915 businesses operate in the retail industry.

If you need support in setting up a sole trader in Sweden, do not hesitate to get in touch with our law firm. We are at your disposal with various services connected to your small business.