Published in January 2007
Invest in Sweden Agency P.O. Box 90 SE-101 21 Stockholm, Sweden
Phone: +46 8 402 78 00 Fax: +46 8 402 78 78 E-mail: isa@isa.se www.isa.se
fact sheet
A limited liability company is a legal entity,
with a clear distinction between the company
and the owners. The limited company can
enter into agreements and be the owner of
property (for example real estate) or other
assets. The limited liability company can
also be a party in a legal proceeding. The
limited liability company must always have a
minimum of 100,000 SEK in share capital.
Requirements to become a founder
One or more founders form a limited liability
company. Since one individual or legal entity
may own all the shares in a limited liability
company, only one founder is required.
Founders (one or more) must subscribe for
all the shares in the company.
A founder may be an individual resident
in the European Economic Area (EEA), a
Swedish legal entity or a legal entity which is
incorporated pursuant to the laws of a member
state of EEA and which has its registered
office, its headquarters or its principal place
of business within the EEA.
A partnership, which is formed pursuant
to the laws of a member state of the EEA,
may also act as a founder, if each partner
with unlimited liability is resident within the
area. Residents from outside the EEA may
act as founders only after obtaining approval
from the Swedish Companies Registration
Office (Bolagsverket).
A founder must be an adult (18 years of
age) and must not have a custodian pursu-
ant to Chapter 11, Section 7, of the Parental
Code (Föräldrabalken), nor be in a state of
bankruptcy. Nor may a person who has
been declared subject to a trade prohi-
bition pursuant to Section 6 of the Trading
Prohibition Act (Lag om näringsförbud) be a
founder.
Characteristics
A limited company has three important parts:
shareholders
board of directors
approved or authorized public accountant
The shareholders invest capital and
decide on the basic rul