Starting a business (In Sweden) Who am I? Todays topics Type of - - PowerPoint PPT Presentation

Starting a business

(In Sweden)

Who am I?

Todays topics

• Type of companies
• Taxes and socialtaxes (skatt och arbetsgivaravgift)
• VAT (moms)
• Profit

Type of companies

What options are there?

• Sole trader (Enskild näringsidkare, also known as “enskild firma”,

“enmansbolag”, “enskild företag” etc)

• Limited liability company (Aktiebolag)
• Trading partnership (Handelsbolag)
• Limited partnership (Kommanditbolag)
• Economic association (Ekonomisk förening)
• Non-profit association (Ideel förening)
• “C-företagare”
• Do I need a company? (Enkelt bolag)

Legal entity?

Before we move on - what is a

Sole trader

(Enskild näringsidkare) Personal number is the organisation number Good:

• Simple* **
• Free***

Bad:

• No limited liability
• Not fitting if a revenue of over 1

million kronor or more.

Limited liability company

(Aktiebolag) A company that has shared and is

• wned by it’s shareholders

Both private and public versions exists Good:

• No personal liability* - only

liable for the companies own capital

• You can be a single owner

Less good:

• Costs 50 000 kronor to set up

(but investments are counted)

• Requires auditor if larger

revenue (over 3 million kronor)

Trading partnership

(Handelsbolag) Multiple people starting a simple company Good:

• Free

Bad:

• Joint liability (solidaritly!)
• Have to be at least 2 people

Limited partnership

(Komanditbolag) Not quite sole trader, not quite limited liability company Good:

• No-one really knows (kinda…)

Bad:

• “Bolagsman” is responsible for

the entire company

• Have to be atleast 2 people

Economic association

(Ekonomisk förening) Not a company, but works like one Good:

• Only liable for own capital

Bad:

• Have to be at least 3 people
• Will be seen on the
• rganisationsnummer as not

being a company.

Non-profit association

(Ideel förening) Not a company, but could work Good:

• Not really liable

Bad:

• Have to be at least 3 people
• Cannot really make a profit
• Will be seen on the
• rganisationsnummer as not

being a company.

“C-företag”

Invoicing thru another company Good:

• No need to register a company

Bad:

• Only really works for services,

very bad for selling products.

• Cannot make any pruchase on

the companies expense.

• Can be hard if not have a

personnummer

Do I need a company?

Enkelt företag

• You can just do business

without a company

○ To a certain degree

• “Enkelt Företag” is if you and

another person cooperate on something

What is best?

• Sole trader / enskild näringsidkare (for getting started)
• Limited liability company / aktiebolag (if you plan on running the

business for a couple of years)

• Trading partnership / handelsbolag
• Limited partnership / kommanditbolag
• Economic association / ekonomisk förening (if you cannot afford a

limited liability company)

• Non-profit association / Ideel förening
• “C-företagare”

What is best?

But do you really need a company?

• Up to 30 000 kr OK without a company, as “hobby”
• But needs to be reported on your tax filling

Taxes

Taxes

(and social taxes, called arbetsgivaravgifter)

Revenue (10 000) Salary (10 000) Taxes (3 000) “In hand” (7 000)

Taxes

(and social taxes, called arbetsgivaravgifter)

Revenue (10 000) Arbetsgivaravgift (2 500) Taxes (2 500) “In hand” (5 000) Salary (7 500)

Taxes

(and social taxes, called arbetsgivaravgifter)

Revenue (10 000) Arbetsgivaravgift (1 000) Taxes (1 000) “In hand” (2 000) Salary (3 000) Purchase, a computer (6 000 exkl VAT) Totalt: 8 000 kr

Important notes regarding taxes

(and socialtaxes)

• Have to apply to register in arbetsgivarregistret (at Skatteverket or at

verksamt.se)

• Is reported monthly to Skatteverket (latest the 12th each month)
• Must be reported even if no salary is payed (or risk fines)!

VAT (value added tax)

VAT

How much is VAT?

• 25 %
• 12 %
• 6 %

VAT

Different amount of VAT

• 25 % - Standard
• 12 % - Food, restaurant, hotell
• 6 % - Transport (person), books
• (0 % - momsfritt) - Officespace and

rents

VAT

VAT

• Ingående moms (when you

recieve an invoice)

• Utgående moms (when you

send an invoice)

• Utgående and ingående moms

are deducted from each other. You only pay the difference to skatteverket

VAT

VAT is payed either:

• Yearly
• Quartely
• Montly

Recommended when starting: Yearly or quarterly

VAT

Important: VAT is not your money! It is the government's money, just temporarily being in your bank account!

Profit (and more taxes)

Profit is taxed differently depending

Sole trade / enskild firma Profit is taxed as salary, but with “egenavgift” instead of “arbetsgivaravgift”. Det betyder:

• 31,42 % on top of the salary
• Taxed as salary (31,87 % in Helsingborg)

Example: Profit of 30 000 kr for a year. This gives 7 172 kr i egenavgift and 7 275 kr in taxes. Left: 15 553 Limited liability company / aktiebolag 2 steps: 1) Profit is taxed with bolagskatt (22%), 2) If you make dividens (to the sharehold(ers)) this is taxed as inkomst av kapital (30%). (there is an exeptional rule, called 3:12 regeln) Example: Profit of 30 000 kr for a year. Taxed with bolagsskatt: 6 600 kr, leaving 23 400 kr in the

• company. If dividens are payed, inkomst av

kapital skatt 7 020 kr. Left: 16 380 kr.

Important notes

Important details

• You can talk to skatteverket!
• Skatteverket assumes you know what you are doing! (especially that you know dates!)
• If you do it wrong, it can be fixed.
• If you are late, there will be fines (500 kr to many thousand kronors)
• You can persuade them to not fine you, if you show you have taken pre-caution to avoid

the mistake.

• If you do wrong, but you payed to much tax, there is seldom a problem.
• If you do wrong, but you payed to little tax, there is a problem!
• Tax crimes are very serious crimes!

Other important things

• F - skatt
• FA - skatt
• SNI number
• Organisations nummer

Verksamt.se