Register branch of foreign company in Sweden
This text is not ment for the foreigners only. Free entrepreneurship within European union allows operation of foreign companies in Sweden. Many people choose to register a foreign company just to pass by relatively high capital demand in order to establish a Swedish company with a limited liability (AB) and receive the same risk profile as holding Swedish AB. Many people choose English Ltd company but also other companies from countries along Baltic rim are becoming increasingly popular. All of these limited companies offer protection from the business risk arising from the company.
Swedish branch of a foreign company (SUF)
Swedish branch of a foreign company (SUF) is today mostly growing company form in Sweden. One first has to register foreign company and then branch (filial) of this company in Bolagsverket. The branch name shall be identical to the foreign company name and contain the word “filial”. When one is ready with the registrations, one gets a company that is identical to Swedish AB company, but on the better conditions. The taxation of such a SUF is identical taxation of AB. One gets Swedish registration number, can get taxational clarification (F-skatt) and Swedish VAT registration. One, however, should note that double registration (in foreign country and in Sweden) implies somewhat higher support costs for such a structure. Your company will be liable to submit some information to taxation and registration authorities even if there is no activity in foreign country, therefore it is important to have a serious service provider, who can handle these requests. Contus can today offer two types of companies to be used as basis for the SUFs – british Ltd and Lithuanian MB. Contus has an agreement with a big the british company formation firm regarding Ltds and a big office in Lithuania, which handle MBs.
SUF can have employees
Exactly as AB the UF can have the employees. Then one should register as an employer in Skatteverket.
Taxes and fees
SUF pays 21,4 procent profit tax on the profit from the year before. The owner gets a double taxation – from one side his/her salary in the company is taxed by Swedish personal income tax and Social security fees. From another side his dividend paid from the taxed profit is also taxed. The dividends are paid via the monther company and taxed at the owners hand as income of capital. The owner that works in the company is taxed in the identical way as the emploee who does not have the shares.