Starting and registering as a sole trader

1. Register your business

To be able to start a sole trader, you need to register the business with the Tax Agency. The easiest way to do this is through the business registration service.

The service also allows you to:

• apply for F-tax or FA-tax
• register for VAT
• register as an employer, if you are going to employ anyone
• register SNI codes that describe your business
• add a visiting address
• file a preliminary income tax return

If you are unable to use the e-service, you can apply using a paper form instead. The form is submitted to the Tax Agency.

Company registration form (SKV 4620) at skatteverket.se (in Swedish)

F-tax, VAT, employer and SNI

When you start your business, you must have F-tax approval and you usually need to register for VAT. The easiest way to do this is via the service here at verksamt.se.

F-tax or FA-tax approval

As a rule, if you are starting a sole trader business, you must have F-tax approval. F-tax approval means that you are responsible for paying tax and individual social security contributions on the remuneration for work you have done for someone. If you only have income from your sole trader, you must apply for F-tax. If you are going to start a sole trader simultaneous with your employment elsewhere, or if you expect to be employed while operating your sole trader, you should apply for FA-tax approval.

Approval for F-tax at skatteverket.se

VAT registration

You usually need to register for VAT (value added tax), which is a tax we all pay when we buy goods and services. VAT is often included in the price and therefore not a concern for individuals. As an entrepreneur, however, you must declare and pay VAT.

Declare and pay VAT

Employer registration

If you have employees, you must register as an employer. As an employer, you must submit a monthly PAYE tax return. You must do so even if you have not paid any salary or other taxable remuneration.

Become an employer

Reporting a cash register

You must have a certified cash register if you accept cash or credit card payments for goods or services. A cash register must be able to record payments made using different payment methods. Examples of payment methods include: cash; credit and debit cards; other electronic payment services (such as Swish); gift cards; coupons, etc.
For registration purposes, please use the Swedish Tax Agency’s e-service: “Anmäl, ändra, felanmäl och avanmäl kassaregister” (“Register, report changes, report faults and deregister cash registers”).

Cash registers at the Swedish Tax Agency

Reporting excise duties

Excise duties are taxes on certain goods and services, such as alcohol, waste, energy and tobacco. Excise duties are often used to steer consumption in society, for example.

For some excise duties, you must apply to be registered with the Swedish Tax Agency. For others, you can apply to the Swedish Tax Agency to become an approved business operator.

Reporting and paying excise duty

Staff registers

You must keep a staff register if you carry out business activities in certain industry sectors. These include: construction; automotive; body and beauty care; food wholesale; tobacco wholesale; restaurant; and laundry. A staff register is a record of the people working on a construction site or business premises.

As a construction business owner, you must report each building site to the Swedish Tax Agency before construction work begins. The easiest way to do this is by using the Swedish Tax Agency's e-service “Se, anmäl, ändra och avanmäl byggarbetsplatser” (“View, register, report changes and deregister construction sites”).

Staff registers at the Swedish Tax Agency (in Swedish)

2. Register your business name

You can, but are not usually required to, register your business name. Sometimes, however, it may be necessary to protect the business name. This applies for example if you you participate in public procurement or if your company needs a licence to operate a certain activity.

You do not have to decide when you start your business, but can choose to protect the business name at a later stage.

If you want to protect the company name, you do so by registering it with the Swedish Companies Registration Office. The name will then be protected in the county where the company is registered.

Sole trader at bolagsverket.se

Use the service Protect business name if you want to protect your business name. The Swedish Companies Registration Office will send you a registration certificate when the name is registered. It costs from 1,200 SEK to protect the business name.

If you cannot use the service, you must contact the Swedish Companies Registration Office.

Contact us at bolagsverket.se

Current processing times at bolagsverket.se

3. Check business licensing requirements

You should learn whether your business requires a license, registration or any other form of application to public authorities, municipalities or other organisations. Special requirements may be imposed on the operator or the premises used by the business.

Find permits

Spouses can run a sole trader together

Spouses or cohabitants with joint children can run a sole trader together. To be considered as running a joint business, you must have equivalent positions in the business. The Tax Agency considers factors such as job duties and education. It is enough for one of you to register for F-tax. The person who registers will then manage the joint accounts. The other person declares their share of the income in their income tax return with the so-called NE annex. However, you must both be registered for VAT and declare your respective share of VAT.

You can also choose to have only one of you declare all VAT. Then you must appoint a representative and form a simple partnership.

Simple partnership at skatteverket.se (in Swedish)

If the business requires specific skills or experience that only one of you has, the other is considered a helpmeet. Only the one directing the company can be approved for F-tax and VAT. The helpmeet can only share in the company's profits but, in the NE annex, may report an income not exceeding the market rate of remuneration for work performed.

Sole trader at bolagsverket.se

Taxes and contributions for sole traders at skatteverket.se (in Swedish)