Start Your Own Limited Company

Do you dream of becoming an entrepreneur? Then it’s time to get started! Starting a limited company is easier than many people think. However, it is common to have questions about the process. We have created a checklist where we also answer the most common questions. Follow our guide and get started with the formation of your limited liability company today.

When you want to start a limited company, you are faced with two choices - either you form a limited company from scratch or you buy an already existing limited company, a so-called stock company. The disadvantage of buying a warehouse company is that the seller charges a fee. At the same time, you don’t have to deal with the administration yourself because someone has already done it for you. But starting a limited company from scratch is not a complicated process. If you do not need to start the business tomorrow, we recommend that you start your company from scratch.

Starting a limited company from scratch is a process in eight steps:

1. Create memorandum of association and articles of association
   You who start a limited company are called founders. If there are several of you who start the limited company together, you are all founders. When you or you decide to start a limited company, you must draw up a memorandum of association. The memorandum of association is a document in which you specify, among other things, how much is to be paid for each share, information about officers in the limited company and provide a proposal for articles of association. The articles of association must state, among other things, what name and what type of business the company should have.

2. Get a bank certificate and open a company account
   Your bank can help you arrange the banking services you may need as an entrepreneur. For example, you should get a business account. They also produce a bank certificate that you must send to the Swedish Companies Registration Office.

3. Buy and pay for shares
   When you start a limited company, you must also buy shares in the company. Buying shares in a company is also called subscribing to shares. If several of you start the limited company, it is not a requirement that all founders buy shares in the company. A single person can buy shares in the company at the same time as there are several founders. The memorandum of association must state how many shares each person buys. Everyone who buys shares must also sign the share subscription.

   By depositing money into a special account in the bank, you can pay for your shares. For private limited companies, a minimum of SEK 25,000 in share capital is required, while a minimum of SEK 500,000 is required for public limited companies.

4. Sign the deed of incorporation
   The limited company is formed when all the founders have signed the memorandum of association. In order for your new limited company to be able to act fully, the Swedish Companies Registration Office must also have decided on registration.

5. Register and pay the fee to the Swedish Companies Registration Office
   No later than six months after the certificate of incorporation has been drawn up, the company must be notified for registration with the Swedish Companies Registration Office. Also remember to pay the administrative fee to the Swedish Companies Registration Office. If you apply online, it costs SEK 1,900, while otherwise it costs SEK 2,200.

6. Report beneficial owner within 4 weeks
   You must register a beneficial owner with the Swedish Companies Registration Office within four weeks of registration. A beneficial owner is the person or persons who ultimately own or control the limited company.

7. F-tax, VAT and employers
   Once you have received your organization number, you need to apply for F tax for your company. If your business is subject to VAT, you must also apply for VAT registration at the same time.

8. Choose an accountant and think about the bookkeeping
   The basic rule is that all limited companies must have an auditor - but smaller companies are exempt from the requirement.

Now you have everything you need to get started with your business. We wish you the best of luck!