Frequently asked questions about different forms of business
Frequently asked questions about different forms of business
If there are two or more of you who are going to start a business, you can choose between:
- Trading company
- Limited partnership
- Limited company
If there are three or more of you who are going to start a business, you can also choose to start an association.
It is possible to change the legal form of your business. You can do so by registering a new legal form of business, closing your old company and transferring all or part of your business to the new company. In other words, you don't actually "change" to another legal form of business, but start from scratch and re-register. This means it is possible to start as a trading partnership and later register as a limited company and continue your business operations in this company.
Tax rules for changing the legal form of your business and the liquidation procedure for the old company may be lengthy and complicated. It is therefore recommended that you contact an auditor or lawyer with knowledge in this area.
The Swedish Companies Registration Office charges a registration fee that varies depending on the type of business you register.
All cases that you submit to the Swedish Tax Agency are free of charge.
When you registered your company with the Swedish Companies Registration Office, you also receive name protection. The extent of the protection varies depending on the type of business you have chosen.
- Sole trader: protection in the county where the company is registered.
- Trading companies and limited partnerships: protection in the county where the company is registered.
- Limited company: protection throughout Sweden.
- Economic association: protection throughout Sweden.
- Tenant-owner association: protection in the county where the association is registered.
- Non-profit association: protection in the county where the association is registered.
- Branch: protection throughout Sweden.
To protect your brand or logo, contact the Swedish Intellectual Property Office, PRV.
Auditor of a limited partnership
There is normally no requirement for an accountant in the business forms sole trador, trading company and limited partnership. Even small limited companies can choose not to have an accountant.
Auditor of a trading partnership