Expanding your business in Sweden
You need to be compliant in Sweden when expanding your already existing business.
We can provide our international clients with full support concerning Accounting, Tax, Payroll and statutory reporting.
Register a company
You can read more here about registering your company in Sweden.
Business Structure
Foreign-based companies usually choose between setting up one of the two main business structures mentioned below, both of which need to be registered with the Swedish Companies Registration Office:
- Limited Liability Company – a subsidiary, also called limited company (Swe: Aktiebolag)
- Branch – a divisional office of the foreign based company, not a separate legal entity (Swe: Filial)
Swedish BankID
If possible, you’ll find that employing a local company signatory will ease your business here in Sweden.
A local company signatory with a Swedish BankID can sign electronically, improve digitalization, cut down Swedish Authorities’ processing time and help with online banking.
Accounting
When conducting business activity in Sweden through a branch or a limited company you are required to maintain accounting records according to the Swedish Bookkeeping Act.
Bookkeeping
Bookkeeping is part of the accounting. All business transactions must be recorded on a current basis and there must be supporting vouchers for all accounting entries. The bookkeeping involves registering all transactions in a chronological and systematic order.
Limited companies and branches are required to comply with Swedish bookkeeping regulations. A branch must keep its accounts separate from those of the foreign based company.
Archiving
You have a statutory responsibility for the archiving of accounting information.
The accounting data need to be adequately archived, which means stored in such a way that it does not risk being destroyed or lost under normal circumstances. It needs to be clear, accessible and in order. Meaning, easily accessible and stored in a clear manner. Authorities shall without difficulty or delay be allowed access to the information, if necessary.
If original paper documents are transferred to digital format, the original paper documents still need to be archived for three (3) years from the end of the calendar year in which the financial year was completed (Swedish Bookkeeping Act 7:6).
Accounting data
The accounting must be in a definite form. Which means that the accounting may not be deleted or otherwise made illegible.
In Sweden it is therefore very common to use an accounting software since you cannot prepare your bookkeeping in a spreadsheet such as Microsoft Excel.
Storage abroad
The accounting data, both paper documents and machine-readable media shall be stored in Sweden.
However, in certain cases it may be stored abroad, outside of Sweden, either temporarily or permanently. You need to identify all types of accounting data, its format and where servers are located in order to determine if storage abroad is possible, and then if it needs to only be reported to Skatteverket, the Swedish Tax Agency or if permission is to be requested from the Swedish Tax Agency.
A branch is required to maintain accounting records in Sweden for the operations conducted in Sweden.
Tax
Tax account
When registering your company for taxes in Sweden a specific tax account is set up with Skatteverket, the Swedish Tax Agency.
The tax account shows all of the tax transactions such as tax payments, VAT returns, withheld taxes, social security contributions, preliminary tax instalments, final tax assessment etc.
Value added tax, VAT
VAT is paid on almost all consumption of goods and services. In Sweden we have different VAT rates depending on type of goods or service. The VAT treatment is rather complex and depends on several variables.
If you perform economic activities, you will most likely add VAT on your sales which you then need to pay to the Swedish Tax Agency in connection with filing a VAT return.
Also, in most cases you will pay VAT on your purchases and you might have the right to deduct that VAT.
Corporate income tax, CIT
The CIT is calculated annually and a corporate income tax return is filed with the Swedish Tax Agency.
Preliminary tax assessments are calculated based on last year’s corporate income tax return, split into monthly instalments.
The preliminary tax payments are credited against the final tax liability. If preliminary tax payments exceed the amount of final taxes due, you will be refunded.
Employer
If you have employees you must register as an employer before you process the first payroll run.
When you are registered as an employer with the Swedish Tax Agency you must file an employer’s contributions and PAYE tax return every month. These are also payable upon filing deadline.
Payroll
We tailor our payroll services to your needs
Payroll run
When preparing payroll runs we need access to and we process a lot of personal data. It is of the utmost importance that we do so in accordance with applicable laws and that the details have been agreed upon before we start providing our services.
In Sweden it’s very common for employees to receive monthly salaries and absence is usually deducted from the salary.
Swedish employees may request allowances from Försäkringskassan, the Swedish Social Insurance Agency, to cover some of the salary deductions.
It is also the employer’s responsibility to make sure each employee takes their vacation, at least 20 days of vacation each year, according to the Swedish Annual leave Act. Excess days can be saved but needs to be taken before five years has passed.
PAYE tax return
After each month’s payroll run you will need to file the PAYE tax return with the Swedish Tax Agency.
Year end closing
In connection with the vacation year end, holiday pay calculations are to be made. Some companies choose to grant their employees access to their vacation days during the running year and some companies let their employees gain access to their vacation days the following year.
Employment agreement
We at MoveByNumbers are not HR specialist, we do not draft employment agreements. We are here to assist you with processing Swedish payroll. We can refer you to HR specialists within our network if you wish.
Financial reporting
Periodic reporting
Depending on your company’s need, or perhaps your stakeholders’ requirements, we can prepare periodic financial reportings, either monthly or quarterly.
The financial overview is always available online with real time cloud accounting, also shows the reconciled periodic reporting.
Year end closing
In preparation of the financial year end closing we arrange for a meeting where we discuss your business and plan for the year end and year to come.
We share a checklist of the information required and we review the year gone by; how did it go, did anything particular happen or is expected to happen?
Annual Report
Every limited company in Sweden must prepare and file an annual report with Bolagsverket, the Swedish Companies Registration Office, every year. This rule also applies to dormant companies and companies in liquidation.
The annual report of a Swedish branch and/or its foreign based company may need to be filed with Bolagsverket, depending on if the foreign based company is situated within the European Economic Area (EEA) or not.
The management of the company is responsible for the preparation, the content and the publication of its Annual Report.
Statistics Sweden
Statistikmyndigheten, Statistics Sweden, supplies users and customers with statistics for decision making, debate, and research. The statistics are based on information provided by companies, government agencies, and private individuals.
Upon request, your company is required to report statistics to Statistics Sweden. The requests relate to different subjects and have different reporting frequencies.
MoveByNumbers’ services
MoveByNumbers perform accounting and payroll services in Visma Online software
Accounting
- Bookkeeping- Cash flow statement
Tax
- VAT returns
- Income tax returns
- K10 form for individual shareholder
Payroll
- Payroll- PAYE tax returns
- Salary slips to employees, electronically
- Year end closing and holiday pay calculations
Financial reporting
- Financial Year end closing- Annual report according to K2 or K3
- Sustainability reporting according to NSRS
- Statistics Sweden
Advisory
- Cash flow forecasting- Goal achievement process
- Identifying business opportunities
- Business update meetings, in person or via video
- Business plan
- Budget report
Digitalization
- Identify software solutions need- Select API
- Set up integrations
- User access and proxies
- Run through of software solution
Starting business in Sweden?
We can assist with setting up a company with Swedish shareholders. If foreign shareholders, we have other service providers within our newtork.
How to do accounting in Sweden?
We offer accounting and consulting services in Sweden. We are authorized accounting consultants and we are a trustworthy service provider who will support you along the way.
MoveByNumbers' Fundamentals
Depending on what services you and your company are in need of, you can rest assured that MoveByNumbers always provide:
- Personal contact
- Quality assured deliveries
- Real time cloud accounting
- Personalized solutions
- Business development support
- Advisory
MoveByNumbers' Quality
We strive to provide all of our clients with high quality services. In order to do so we aish to understand you and your business. What are your goals? Why do you do what you do?
Together, we will identify your needs so we can set mutual expectations to ensure an efficient collaboration. We personalize your software solution and provide real time cloud accounting so you can use the accounting as a basis for your business operations.
MoveByNumbers has extensive experience in financial management, accounting and tax. We are authorized accounting consultants in Sweden and are listed in the Anti Money Laundering register which means we undergo regular quality checks. In other words, we are trustworthy service provider and we can support you along the way.
