Self-Employed in Sweden: Sole Trader or Limited Company?

Many people who move to Sweden don't want to work (only) as employees – they want to do their own thing as a freelancer, craftsperson, with a small online shop or a holiday rental. The good news: starting a business in Sweden is relatively straightforward, and almost everything can be done online.

In this post, we show you which business form suits you, how registration works and which taxes and obligations you need to know about.

Enskild firma or aktiebolag – which form suits you?

For most founders, there are two main options:

Enskild firma (sole trader)

The enskild firma – officially enskild näringsverksamhet – is the classic sole proprietorship. You run the business under your own personal identity number (personnummer).

• No minimum capital required
• Registration with Skatteverket is free
• Simple bookkeeping and year-end accounts
• You are personally liable with all your private assets
• The profit is taxed as your personal income

Aktiebolag (AB)

The aktiebolag is a private limited company, comparable to a German GmbH or a British Ltd. It is a separate legal entity.

• As a rule, you are not personally liable with your private assets
• Profits in the company are taxed at the corporate tax rate (bolagsskatt) of 20.6%
• At least SEK 25,000 in share capital (aktiekapital) is required
• Registration with Bolagsverket costs a fee
• More admin: an annual report (årsredovisning) must be filed with Bolagsverket

Our tip: For a small start with limited risk, many choose the enskild firma. If your business grows or you face higher liability risks, switching to an AB can make sense. For bigger decisions, get advice from an accountant (redovisningskonsult).

Registering via verksamt.se

Your central starting point is verksamt.se. The portal is run jointly by Skatteverket (the Swedish Tax Agency), Bolagsverket (the Companies Registration Office) and Tillväxtverket. You'll find all the forms and information in one place.

This is how registration typically works:

1. Check the prerequisites: You need a personnummer (or coordination number, samordningsnummer) and, in practice, BankID to register online.
2. Choose your business form – enskild firma or aktiebolag.
3. For an AB: Pay the share capital into a bank account, get a confirmation from the bank and register the company with Bolagsverket.
4. Register with Skatteverket (skatte- och avgiftsanmälan): This is where you apply for F-skatt, VAT registration and, if needed, registration as an employer.
5. Set your preliminary tax: You estimate your profit for the first year.

What does it cost?

All registrations with Skatteverket are free of charge. Bolagsverket charges fees (as of 2026, according to verksamt.se):

• Registering an aktiebolag: SEK 2,400 via e-service, SEK 2,700 by post
• Enskild firma: registration with Bolagsverket is voluntary in many cases and protects your business name – it costs SEK 1,800 via e-service or SEK 2,100 by post

You can find the current fees on the verksamt.se fees page.

F-skatt – your ticket to getting clients

F-skatt (företagsskatt, business tax) is an approval from Skatteverket confirming that you pay your own tax and social security contributions. This is crucial for your clients: if they hire a contractor with F-skatt, they don't have to pay tax or employer contributions for you.

• Without F-skatt, many companies simply won't hire you.
• You pay a monthly preliminary tax (preliminärskatt) based on your estimated profit.
• After your tax return, everything is settled – you either get money back or have to pay extra.

Common mistake: Underestimating your profit. That can lead to a big tax bill the following year. It's better to adjust your preliminary tax during the year if business goes better than expected.

Moms – Swedish VAT

Moms is Swedish VAT. The standard rate is 25%, with reduced rates of 12% and 6% for certain goods and services.

• Small business exemption: If your annual turnover is no more than SEK 120,000 (and didn't exceed that in either of the two previous years), you can be exempt from VAT.
• If you exceed the limit, you must charge VAT from the sale that takes you over it and register with Skatteverket.
• You can also register voluntarily – then you can deduct input VAT (ingående moms) on your purchases.

Depending on your turnover, you report VAT monthly, quarterly or annually in a momsdeklaration.

Egenavgifter – your social security contributions

As the owner of an enskild firma, you don't pay employer contributions but egenavgifter – social security contributions on your profit. They fund your pension, sickness benefit, parental benefit and so on.

• For 2026, full egenavgifter are 28.97% (for people born in 1959 or later who actively run a business).
• There is a standard deduction (schablonavdrag) of 25% of the egenavgifter in the calculation.
• On top of that, you pay regular municipal (and possibly state) income tax on your profit.

An aktiebolag works differently: if you pay yourself a salary, the AB pays employer contributions (arbetsgivaravgifter) – 31.42% in 2026. The AB's profit is taxed at 20.6%.

Our tip: Set aside a fixed share of every payment for taxes and contributions – many use roughly a third as a rule of thumb, but this can vary depending on your profit and municipality.

Bookkeeping – what you need to document

Businesses in Sweden are required to keep accounts (bokföringsskyldighet). This means:

• All business transactions must be recorded.
• You must keep receipts and invoices (verifikationer) for 7 years.
• Keep business and private finances strictly separate – ideally with a dedicated business account.
• An enskild firma prepares year-end accounts and submits its figures with your personal tax return (the NE appendix).
• An AB prepares an årsredovisning and files its own tax return.

There are plenty of Swedish accounting programs that make bookkeeping, VAT returns and year-end accounts much easier. Many founders also get help from an accounting firm (redovisningsbyrå).

Contacting Skatteverket

Skatteverket is a surprisingly helpful point of contact:

• On skatteverket.se you'll find detailed information on all business forms, F-skatt and VAT.
• Skatteverket offers free webinars for people who want to start a business – you can ask your questions directly.
• You can also get information by phone and at service offices, often in English too.

We can't provide tax advice here. For specific questions about your situation, contact Skatteverket or a tax advisor directly.

Checklist for getting started

• Personnummer and BankID in place
• Business form chosen (enskild firma or AB)
• For an AB: SEK 25,000 share capital paid in and registered with Bolagsverket
• Skatte- och avgiftsanmälan submitted to Skatteverket via verksamt.se
• F-skatt approved
• VAT obligation checked (SEK 120,000 turnover limit)
• Business account opened
• Accounting software set up
• Reserves planned for taxes and egenavgifter

Our conclusion

Thanks to verksamt.se and Sweden's digital authorities, becoming self-employed in Sweden is surprisingly easy. The enskild firma is ideal for an uncomplicated start, while the aktiebolag offers more protection and tax planning options but comes with more admin. Most importantly: apply for F-skatt, keep an eye on the VAT threshold, keep clean books and set aside enough money for taxes. Then nothing stands in the way of your Swedish business!