Am I allowed to start my own business in Sweden?
Yes — starting a business in Sweden is straightforward. A sole trader needs no start capital; you apply for F-tax with the Tax Agency via verksamt.se and register for VAT and, if relevant, as an employer. You are personally liable for the business's debts. You can be VAT-exempt if turnover is at most 120,000 kr per year (raised from 80,000 kr on 1 January 2025). If you instead want a limited company, 25,000 kr of share capital is required plus registration with the Companies Registration Office. Standard VAT is 25% (12% and 6% for some goods and services).
📋 The rules
- Sole trader: no start capital, apply for F-tax
- VAT exemption with turnover ≤ 120,000 kr/year
- A limited company needs 25,000 kr of share capital
- Standard VAT 25% (also 12% and 6%)
- F-tax: you pay your own preliminary tax and social charges
🔓 Exceptions
- Some trades need permits (food, alcohol, taxi)
- Even VAT-exempt you must register and then cannot deduct input VAT
- Foreign founders need a personal or coordination number
⚠️ Penalties & fines
Running a VAT-liable business unregistered or invoicing without valid F-tax can bring a tax surcharge and back tax. Serious cases can be accounting or tax offences.
📎 Official sources
- Verksamt.se · Start a business →
- Tax Agency · VAT exemption →
- Companies Registration Office · Compare forms →
❓ Frequently asked
Do I need start capital to start a business?
No, not for a sole trader. A limited company, however, needs 25,000 kr of share capital.
When must I register for VAT?
You can be VAT-exempt if turnover is at most 120,000 kr per year, otherwise you must register for VAT.
What is F-tax?
An approval meaning you pay your own preliminary tax and social charges as a business owner.
What is the difference between a sole trader and a limited company?
In a sole trader you are personally liable; a limited company is its own legal person with its own capital.
Where do I register the business?
Sole trader and F-tax with the Tax Agency via verksamt.se; a limited company with the Companies Registration Office.
🔎 Common searches
What people search to land here:
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