A branch is not the same as a limited company

A branch is part of a foreign-based company. If a foreign company wishes to carry on business in Sweden, it can do so through a branch. Make sure you know about the requirements for starting a branch and for the foreign-based company before you register a branch.

A branch is part of a foreign-based company and is not a legal entity. You do not get a limited company by registering a branch. A branch has a Swedish company registration number and is subject to Swedish law but it is not a legal entity.

It is important to remember that a branch is not the same thing as a limited company.

If you choose to register a branch, there are requirements to be met for both the branch and the foreign-based company connected to it. Here are some examples:

  • The branch must keep its own accounting records, kept separate from the foreign-based company.
  • Every year the branch must file an annual report for the foreign-based company and in some cases for the branch as well.
  • Taxes and other charges must be paid as required.
  • The foreign-based company must follow the rules that apply in Sweden.

It is a good idea to contact your bank, the Swedish Tax Agency (Skatteverket) and an accountant for advice before you register a branch.

We also have information about starting a limited company.

Set up a limited company

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