Succession of generations of limited company
Here you will find information on what to do when qualifying shares in a limited company are transferred to a new owner.
Important points for a generational change of a limited company
1. Prepare for the generational change
It is always a good thing to tell the children about your plans well in advance. Then everyone who wants to will get a chance to be involved in the business before decisions are made. Everyone also gets a chance to have their say and this can reduce the risks of future conflicts.
Another good idea is to let the next generation get to know the different parts of the family business before the handover. Distinguish between ownership and operational management. Children who are interested may well take over ownership, without taking operational positions in company management. Just as with the purchase of a company, it is good if the person taking over does their analysis of the company and also their own valuation.
If you, as the owner of the company, want the shares to be distributed according to performance and participation in the business, it may be a good idea to be prepared. It is not unusual for children who, despite not having been active in the business, consider themselves entitled to equal shares in the company according to inheritance law. Therefore, it can be good to carry out a generational change in connection with, for example, retirement instead of waiting and letting it become a matter for the estate.
2. Report a change of the address and board to the Swedish Companies Registration Office
If the company's address or board has changed, you must notify the Swedish Companies Registration Office. You do that in the service here at verksamt.se.
Change the board of directors and other information
3. Report a change of partners and visiting address to the Swedish Tax Agency
You change information about partners in a close company to the Swedish Tax Agency in the service here at verksamt.se. Don't forget to also update the company's share register. If the company's visiting address has changed, you also report this.
Register and change F-tax, VAT, employer and SNI
If you are unable to use the service, you can use a paper form to report the change of visiting address and partners.
Download the Swedish Tax Agency's form SKV 4639 (in Swedish)
If a shareholder dies
The shares pass to the estate when a shareholder dies. If the same person has also served on the board of the company, that responsibility passes to the estate owners. It is now the estate owners who are responsible for assets and liabilities and that taxes and fees are reported and paid. It applies until the estate has been transferred.
Probate - what to think about at skatteverket.se (in Swedish)
The Bereavement Guide - for those who have lost someone close (in Swedish)
4. Report the shares in the income tax return
A beneficial transfer of qualified shares - that is, if the transfer takes place by gift, inheritance or will - shall not be subject to taxation. Instead, the new owner takes over the cost amount.
Shares in case of inheritance, gift or estate division at skatteverket.se