If you just relocated to Sweden or recently completed your studies and thinking about starting a business to earn you a permanent residence status, then, this article is for you. Today, we will take you on a journey of how to start your own business in Sweden.
Steps to Take in Starting Your Own Business in Sweden
How to Start Your Own Business in Sweden
Conduct your research
In today’s information-rich environment in Sweden, there is no justification for launching a business without conducting adequate research. Statistics Sweden, which provides data on everything from population and age to business attitude and industrial capacity, is a goldmine of information about Sweden and its demographics outside of this website.
You can also inquire with the trade association (branschorganisation) that deals with the industry in which you are interested. They can frequently include data and statistics regarding the number and nature of the businesses operating in that industry, the laws that apply, and the general health of the market.
Leverage on your network
Regardless of the nation you are in, one of the keys to business success is making your network work for you. In Sweden, you may have friends, coworkers, and relatives, but how and where can you discover others who share your ideas?
You could get in touch with your neighborhood chapter of the Swedish Jobs and Society Foundation (Nyföretagarcentrum), which offers assistance to startup companies and hosts frequent events across the nation. Connecting with other businesses is made easier by Business Sweden.
Verksamt.se, a website created by three Swedish government agencies (the Companies Registration Office, the Tax Agency, and the Agency for Economic and Regional Growth), offers another means to discover advisers and expand your network. They provide a page to assist you in finding advisors based on your location.
As you meet more people, utilize social networking platforms like LinkedIn and Facebook to keep track of your new contacts and watch your networks expand. Swedes are a very online breed, so as you meet more people, do so online.
File with the tax agency
How to Start Your Own Business in Sweden
Your personal identity number (personnummer), which is given to you by the Swedish Tax Agency, will serve as a means of identification for your business as a sole proprietor (Skatteverket). The Tax Agency also conducts free education sessions in both Swedish and English that provide step-by-step guidance on how to launch a business.
The first stage in launching a sole proprietorship is to register for F-skatt, sometimes known as “F tax” (the letter “F” stands for “entrepreneur”). F-skatt simply means that you operate as a business owner rather than an employee, and as a result, the people that hire you aren’t in charge of handling your tax or social security payments; you are.
On its website for F-tax certification, the Tax Agency provides a place to get started. It contains details on how to apply. Since the actual papers can only be filled out in Swedish, you may want to seek the assistance of an accountant or schedule a consultation with the Tax Agency in person for advice.
Depending on the nationality of the individual traveling to Sweden to establish a business, Sweden has varying laws and regulations regarding residency requirements. Citizens of the Nordic countries (Denmark, Finland, Norway, and Iceland) are exempt from registering with or applying for a residence permit with the Swedish Migration Agency (Migrationsverket). The right to reside in Sweden and the ability to apply for a personal identity number are both available to citizens of the European Union (EU) and the European Economic Area (EEA).
A residence permit is required if you are a Swiss national and plan to remain for more than three months. You must apply for a residence visa before traveling to Sweden if you plan to start a business and are from outside the EU, EEA, or Switzerland. The Swedish Migration Agency’s website has the required information.
In order to apply for F tax status while temporarily residing in Sweden, you must get a co-ordination number from the Tax Agency. This number substitutes your personal identity number.
Register your business and obtain consent
In Sweden, a license is necessary to operate a specific kind of business. The different trades, professions, and enterprises that need permits are listed on Verksamt.se along with contact information for the organizations that provide them. Although not required, registering your business is still a smart choice. It will make sure that no other person is permitted to run an identical firm.
Visit the Swedish Companies Registration Office website to register your business name (Bolagsverket). They will process your registration for a charge.
Create a business plan
It’s time to start putting your dream on paper once you’ve determined what products or services you want to sell and determined whether there is a market for them. Whether it’s banks, investors, or potential clients, getting people to pay attention requires a strong business strategy. Your company strategy doesn’t need to be extensive or complicated. It is merely a declaration of your intended course of action.
Similar to a CV, the format of a business plan might differ by country; in some, the idea is everything, while in others, it’s not, rather preference is given to having a solid financial foundation. A good resource on what Swedish bankers, investors, and authorities look for in a business plan is Verksamt.se.
Employ people and operate lawfully
In a few years, you might find yourself in the fortunate situation of being able to provide work to others; in that case, it’s a good idea to be familiar with the fundamental principles of Swedish employment law. The Employment Protection Act (Lagen om Anställningsskydd, or LAS) governs working conditions in Sweden. According to this statute, unless expressly stated differently, employment contracts are for an infinite period of time.
The law also describes the four forms of fixed-term employment contracts, which range from temporary replacement work to permanent employment to labour rules to those above 67 years. Before deciding to recruit someone, it’s a good idea to familiarize yourself with Swedish employment law’s extensive provisions for maternity leave, holidays, and pension entitlements.
You can even subcontract your labor needs to other sole proprietors like you; just make sure they are F-tax registered. The website of the Swedish government contains translations of the pertinent labor laws and actions.
Keep a proper accounting record
Get an accountant unless you’re starting an accounting firm. Since starting your own business is all about maximizing your talents, hiring someone to handle the accounting, taxes, and laws if you lack those skills is worthwhile.
There are many competent companies out there that focus on assisting small businesses like yours and charge an hourly cost for their services. Asking other business owners in the same industry who they employ is one of the simplest ways to discover a reputable, reliable accountant.
Additionally, you can get in touch with the Association of Swedish Accounting Consultants, who will assist you in locating a reliable business nearby. You can learn how to properly prepare invoices in accordance with Swedish legislation and laws from an accounting specialist.
Funding your project
I’ll state the obvious: unless work comes pouring in right away, you’ll need to make sure you can pay your usual home expenditures as you launch your business. Perhaps you’ll utilize your funds to pay for your initial few months’ expenses. Alternatively, you might slowly grow your firm while working a full- or part-time job. Of course, you may also apply for a business loan via your bank, but since most enterprises are not successful at first, they will ask you to provide security.
Almi Företagspartner (Almi), a state-owned organization that aids firms with capital and business advisory, is an alternative source of funding. Although they frequently charge higher borrowing rates than banks, they typically demand less security. It will be worthwhile to spend some time learning the fundamentals of bookkeeping since even if you hire an accountant, you are still responsible for comprehending it.
Have a strong business ethic
In a broader sense, organize yourself. Most business owners would initially be willing to work as hard as they can on the sales side, but make sure you also find time for the administrative side of your company. Any aspiring entrepreneur can use this advice, no matter where they are in the world.
Take the time each month to evaluate your progress and discuss with your financial advisors any outstanding taxes or other fees. By doing this, you’ll be able to compare your success to your business plan, make necessary improvements, and stay on the good side of the law.
How to Start Your Own Business in Sweden