3 things to consider when starting a limited company

The legal process and registration required to start a Swedish limited company in Sweden is a simple game compared to other countries. This is inexpensive and usually does not take as long as Swedish authorities usually work favorably for those who want to start businesses. Before you get to form your own limited company, there are a few key points you should keep in mind. You obviously need to think up a good name for your company, and once you get started how you handle accounting and taxation. In addition, if you have really thought about the right corporate form, ie whether it should be a limited company, individual company or another corporate form.

Company Name

The company name sets the tone for your business. More often than not, the name is the first impression we have of a company, which may appear in internet search results when looking for a particular service or product. Either you see a sign outside a store or office, or someone has told you about a company through word of mouth. Another example might be that you received advertising by mail or e-mail. The first impression really plays a role here, so be sure to choose a name that really speaks to the target market and market that you are going to sell within.


Many start-up companies decide to appoint an accountant or accounting firm to help them with their accounting and taxation. When selecting an accountant, you may want to consider choosing a company that specializes in the entrepreneurial market as they will have experience in dealing with common issues that may arise. If you live in the capital and have your business there, an accounting firm in Stockholm may be relevant.

Public limited company or individual company?

The type of company you choose to register will affect your payout and your personal responsibility in the event of a debt. The two most popular corporate structures in Sweden today are public limited companies and individual companies. A limited company is incorporated with a start-up capital; while an individual firm does not require capital in the same way but more a registration cost that is not as significant.

Start a limited company

For most people who set up a business they expect to feed on, a limited liability company is the most appropriate and popular choice in our country today. This is because you can divide the company into lots of “parts” or “shares”. This allows you to “co-own” the company with business partners or sell shares to other people through return on investment.

Each shareholder has the right to take part of his profits in relation to his share of the ownership. It also means that each owner is responsible for contributing to the nominal value of their shares, if, for example, companies should stand with debts they cannot pay.

Individual company

This structure is generally used by smaller businesses that are in the start-up phase or those that do not bring in much money. There are no shares or shareholders, so the company is not divided into shares and is not sold to other persons.

These were just three of many important points to consider when starting a limited company.

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