Formation of Swedish joint stock company
The limited liabilty company (aktiebolaget) is a business organization that suits when there several owners. Limited liabilty company (aktiebolaget)is a separate legal entity.
You have to pay in share capital
When you start a limited liabilty company, you must have at least 25 000 to pay the share capital. The share capital corresponds to a number of shares that shareholders have as proof of his holding in the company multiplied by the nominal value of each share. The share capital may be cash or property that is of benefit to the business. In the later case the property is called apportegendom and shall be valued by an auditor.
So the limited liability company is run
Swedish limited liabilty company is normally represented by a the Management Board and in some cases by a Chief Executive Officer (CEO). The Board may consist of one or two members with at least one deputy or three members, with or without deputies. It may be good idea for the company to have a board composed of experienced people with different skills and business contacts. If the company shall have a Chief Executive Officer he or she is appointed by the Board. In a private company, the same person can be both director and Chief Executive Officer.
The shareholders’ ability to influence the operations of the company is only executed on annual general shareholder meetings and extraordinary shareholder meetings, where shareholders appoint the Board member and the auditor, as well as draw the general lines for the business. Small companies may choose not to have an auditor. If the corporation has an auditor, he or she shall audit the accounts once a year. The auditor should also review the Company’s financial statements and the Board’s and the CEO’s management.
Taxes and fees
The limited liability company pays 21,4 per cent of corporation tax on the profit for the last year. The owner of limited liability company is taxed on wages the company pays him and the dividends on shares. In a limited company profits distributed to shareholders through dividends. Dividends are taxed at the shareholder as capital income. Special taxation rules apply to closely held companies (fåmansföretag). However in general, owners who work in the company is considered an employee and his/her salary is taxed in the same manner as for employees who do not have shares.