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 or FA-tax approval

If you run a business, you can apply for approval for F-tax. 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 your sole proprietorship 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 register your sole proprietorship in order to protect your business name. The Swedish Companies Registration Office will send you a registration certificate when the company is registered. It costs from 1,800 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 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 who run a business together

When spouses run a business together, there are two different sets of rules for how income can be allocated. If both of you have an equivalent position in the business in terms of tasks and qualifications, the income must be divided based on the work and other contributions made. The same applies if the business operates at a loss.
If one of you, considering education, work responsibilities, and other circumstances, has a more leading role, that person is considered to be running the business, and the other is considered an assisting spouse. The assisting spouse may not receive a larger share of the income than what corresponds to a market-based compensation. An assisting spouse cannot share in any loss from business operations.

Salary and owner’s withdrawals at the Swedish Tax Agency (in Swedish)

Simple partnership

If two or more people want to run a business together without forming a limited company or a partnership, you can set up a simple partnership (‘enkelt bolag’). An example of a simple partnership could be siblings or spouses who jointly own an agricultural property.

A simple partnership is not a legal entity and therefore cannot conduct business on its own. Each partner may, however, individually apply for approval for F-tax.

As partners, you can choose to report VAT and employer contributions individually or appoint one of the partners as a representative. The representative then uses a special reporting number. Each partner must, however, submit their own NE annex and report their share of the business’s profit or loss. Profits and losses are divided equally between the partners unless otherwise agreed.

Simple partnership at skatteverket.se (in Swedish)

Sole trader at bolagsverket.se