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Establishing your business in Sweden
The key organisation to deal with when setting up a Swedish operation is the Bolagsverket, the government business registration office. Basic registration with them takes 2-4 weeks.
A Swedish bank account is not necessarily required; however, a Swedish bank must certify that you have at least SEK 25,000 in share capital deposited in an account.
Registration with the Skatteverket, the Swedish tax office, is required to get approval for Swedish F tax, VAT registration, employer registration, and income tax registration. It’s worth noting, however, that companies who don’t have permanent premises in Sweden don’t have to pay tax on business income generated there.
Sweden’s tax and financial year runs according to the calendar year and most businesses align their dates similarly. Those that do must file their tax returns by 1 July the following year.
Employment Law in Sweden
As defined by the Working Hours Act, the standard working week in Sweden is 40 hours. Overtime is limited to 50 hours per calendar month and 200 hours per calendar year, and is paid at 1.5 times to double the standard rate.
Companies should familiarize themselves with Sweden’s Employee Protection Act to check for any specific regulations that might concern them. Sweden is, however, relatively liberal in its employment laws: for example, written contracts between employees and employers are not required by law. And because Sweden is a member of the EU, companies operating there have easy access to workers from across the continent.
Collective bargaining by trade unions and organized groups of workers is common in Sweden, and negotiations often help set rates of pay, especially among larger operations.
Probation periods in Sweden can run for up to six months, with a two-week notice period on the employer’s side during this time. Standard notice periods start at one month for those employees with less than two years’ experience, with an extra month added after every two years, to a maximum of six months’ notice after ten years.
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Why become an Employer in Sweden
Compared to many countries, Sweden is a relatively straightforward place to do business and run payroll. However, that doesn’t mean that companies shouldn’t do everything in their power to maximize payroll efficiency and maintain continuous compliance. This combined with the access to a plethora of talented and qualified service experienced professionals can give you a stable footing for further Scandinavian growth.
TopSource Worldwide, as an expert in international payroll, can streamline your back office to enable you to focus on the issues that matter.