Types of company
When you start a company, you have to decide what type to have. There are various types of company which all work in different ways.
The type of company you choose depends on what you plan to do and your own criteria, whether you're going to start the company on your own or together with others. No matter what type of company you go for, you or the company has to apply to the Swedish Tax Agency to pay corporation tax. Your corporation tax certificate means you're an entrepreneur and deal with your own taxes and contributions.
Sole trader
If you're going to start a company alone, you may find it appropriate to be a sole trader. There's no requirement for you to invest capital, but nor is there any clear boundary between you personally and your company as regards your finances.
Trading partnerships and limited partnerships
Trading partnerships may be one option if at least two of you want to start a company together. You don't have to invest capital here either, but the co-owners are personally and jointly and severally liable for the company's debts. A limited partnership is a variant of a trading partnership. At least one person has to be personally liable for the company's debts, without limitation, while others are only liable for the capital invested.
Limited company
Limited companies can be started by one or more people. To start a limited company, you need share capital of at least SEK 50 000. Personal liability for the company's liabilities is essentially limited to the share capital.
Cooperative society
You need at least three people to start a cooperative society. The society has to promote the financial interests of its members, and members must play an active part in operations. The financial liability of members is essentially limited to members' contributions.
