Introduction to setting up a Swedish branch
Sweden offers a stable economy and various financial incentives to foreign investors looking to move into the country’s business market. Establishing a Swedish branch company must be done within the regulations set by the Act on Branches of Foreign Companies (Lagen om utländska filialer). Any EU or EEA company may establish a branch in Sweden without restriction.
What are the formalities regarding Swedish branches?
- A copy of the parent company’s Certificate of Incorporation
- A copy of Memorandum & Articles of Association of the parent company
- A copy of the parent company’s Certificate of Good Standing
- Special authorisation is needed if the parent company’s board of directors mainly, or only, consists of non EEA citizens
- A managing director of the branch with authorised POA
The documents above are required in order for branch registration with the Swedish Companies Registration Office (Bolagsverket) and to obtain a corporate identity number.
All required documentation must be notarised and translated into Swedish by a sworn translator.
What are the accounting requirements for a Swedish branch?
The branch must register with the Swedish Companies Registration Office (Bolagsverket) for taxation purposes.
Both the branch and parent company must keep separate accounting records and the branch must file separate annual accounts with Bolagsverket. These accounts must be checked by a certified public accountant. Requirements for non-EEA companies may differ.
Branches with more than 3 employees and a net turnover exceeding 3 million kronor are required to have audited accounts.
In accordance with the Foreign Branch Offices Act accounts must be drawn up or translated into Swedish, but the Bolagsverket also accepts English, Danish and Norwegian documents.
For further information on accountancy and tax rates in Sweden, please contact us.
What office facilities are available when registering a branch?
The two main types of office available in Swedish are as follows:
- Virtual offices – provide off-site communication through telephone, fax and mail forwarding facilities to maintain business professionalism
- Serviced offices – are ready for immediate occupation by the branch and provide all necessary business services
Branch formation packages
Every aspect of branch formation can be managed by us on your behalf. Our accomplished team can provide a branch formation package including services such as the registration of VAT and provision of an office, so you can leave the complete formation procedure up to us.
We have a wealth of experience on the requirements of European formation that can also support you in setting up multiple branches. You can enjoy the advantages that come with registering multiple branches, i.e. increased exposure and new business, while we organise everything for you.
For further information please send an enquiry or contact us using the form below.