About Sole Proprietorship
A sole proprietorship (enskild näringsverksamhet, enskild firma) is the simplest form of business, with an easy registration process and no minimum capital requirement. The business is owned and operated by a single individual, who bears full responsibility for its operations and outcomes. One major drawback of this form is that the owner is personally liable for the company’s obligations, including with personal assets. Nonetheless, we strongly recommend keeping business and personal finances clearly separated at all times.
Given that this type of business is generally taxed less favorably than a foreign company branch or a limited liability company, it is important to consider whether saving a few kronor.
Service fee: 1 600 SEK + VAT.
The fee includes:
- Preparation of the registration form for submission to Skatteverket;
- Preparation of the registration form for submission to Bolagsverket (if registering a company name).
The documents will be prepared within 1–3 business days upon receipt of payment and all required information.
No, a sole proprietorship is not considered a separate legal entity. The business and its owner are legally the same person.
Yes, as the owner of a sole proprietorship, you are allowed to hire employees.
If your spouse works with you in the business, there is no legal requirement to formally employ them. Instead, you can share business profit with your spouse, provided that their contribution to the business is real and proportionate.
Yes, you can engage in several types of business activities within a single sole proprietorship, as long as they are properly registered and comply with legal requirements.
In a Swedish sole proprietorship, registering a business name with the Swedish Companies Registration Office (Bolagsverket) is not mandatory.
However, if the business chooses to operate under a specific name, that name must be registered and protected. Registration grants the exclusive right to use the name within a specific industry and within a designated county (län) in Sweden. Furthermore, having a registered business name becomes essential when participating in public procurement processes or conducting activities that require a special license or permit.
If the business name is not registered, the owner’s full legal name will be used instead.
In Sweden, the income generated by a sole proprietorship is taxed as personal income.
The business profit is included in the owner’s personal income and is subject to individual income tax rates.
Preliminary taxes (advance income tax) are paid on a monthly basis. Once a year, based on your tax return, the final income tax for the previous year is calculated, and a new preliminary tax amount is set for the following year. In the first year of business, the advance tax is based on an initial income estimate submitted at the time of registration.
The sole proprietor is allowed to deduct social security contributions (egenavgifter) from the business profit, but the deduction may not exceed 25% of the net profit.
After paying the applicable social security contributions, municipal tax, and, where applicable, national income tax, the remaining income is freely available to the business owner for personal use.
