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Verksamt logotyp

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Here you can compare different business types. The table gives you an overview of the most common business types and what distinguishes them.

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Sole traderLimited companyLimited partnershipTrading partnershipEconomic association
Legal entityNoYesYesYesYes
Number of ownersOnly 1 person At least 1 person or enterpriseAt least 2 people or enterprisesAt least 2 people or enterprisesAt least 3 people or enterprises
Owner liabilityThe business operator is personally liable for the agreements entered into and for the debts of the enterprise.The company can enter into agreements and is liable for its debts.The partnership can enter into agreements. The general partner is liable if the partnership cannot pay its debts.The partnership can enter into agreements. The partners are liable if the partnership cannot pay its debts.The association can enter into agreements and is liable for its debts.
Capital requirementNoAt least SEK 25,000.General partner: no Limited partners: at least SEK 1NoYes, in the form of a cash or work investment.
RepresentativesThe sole traderThe board of directorsThe general partnerThe partnersThe board of directors
RegistrationWith the Swedish Tax Agency and possibly the Swedish Companies Registration OfficeWith the the Swedish Companies Registration Office and the Swedish Tax AgencyWith the the Swedish Companies Registration Office and the Swedish Tax AgencyWith the the Swedish Companies Registration Office and the Swedish Tax AgencyWith the the Swedish Companies Registration Office and the Swedish Tax Agency
Name protectionIn the countyNationwideIn the countyIn the countyNationwide
Form of taxationF or FA tax (FA tax for income from both the business and employment) The company: F tax The owners: A tax (employees)The partnership: F tax Partners: SA tax (special debited A tax)The partnership: F tax Partners: SA tax (special debited A tax)The association: F tax The members: A tax (employees)
TaxationThe business operator is taxed for the surplus (income tax + social security contributions).The company is taxed on its profit (corporation tax). The owners are taxed on salary withdrawn and possible dividends (income tax + possible gains tax). Partners are taxed for their part of the partnership’s surplus (income tax + social security contributions).Partners are taxed for their part of the partnership’s surplus (income tax + social security contributions).The association is taxed on its profit (corporation tax). The members are taxed on salary taken out and possible dividends (income tax + possible gains tax).
Annual report and auditorOnly annual accounts. Auditor is not required.All limited companies must file an annual report, and in certain cases an auditor’s report, with the Swedish Companies Registration Office. Small companies may choose not to have an auditor. Find out more at the website of the Swedish Companies Registration Office. If the limited partnership has a legal entity of a certain size as a co-owner, the partnership must appoint an accountant and submit an annual report to the Swedish Companies Registration Office.If the trading partnership has a legal entity of a certain size as a co-owner, the partnership must appoint an accountant and submit an annual report to the Swedish Companies Registration Office.An annual report must be prepared and an auditor must be appointed.
Allocation of profit and lossNormally only to the business owner. Exceptions are spouses and cohabitants with mutual children.Profit can be allocated to the shareholders in the form of a dividend.As per agreement if such an agreement exists. If no agreement exists and the partners cannot agree on the allocation, the issue must be decided in court.As per agreement if such an agreement exists. Equal distribution otherwise.Profit can be divided between the members in the form of a bonus.
Income as the basis of sickness benefitsSurplusSalary withdrawnThe surplus for the partners individuallyThe surplus for the partners individuallySalary withdrawn
Qualifying period1, 7, 14, 30, 60 or 90 daysSick leave deduction1, 7, 14, 30, 60 or 90 days1, 7, 14, 30, 60 or 90 daysSick leave deduction
Pensionable incomeSurplusSalary withdrawn The surplus for the partners individuallyThe surplus for the partners individuallySalary withdrawn
Register beneficial ownershipNoYesYesYesYes

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