A limited company (aktiebolag) is a legal person owned by its shareholder or shareholders. The dividing line between the company’s finances and the shareholders’ private finances is well-defined.
What is a limited company?
A limited company is a legal entity with its own rights and responsibilities, which, for example, limits your liability for the company’s debts.
If you are a European Economic Area (EEA) country national, starting a limited company is fairly straightforward. You should register your limited company with Bolagsverket before you begin operating your business.
You can start a limited company on your own and be the sole owner, but there has to be at least two people registered on the company and you need a minimum starting capital of 25,000 Swedish kronor.
Compared to being a sole trader the administration is more demanding, and you have to file an annual report with Bolagsverket every year.
Closing a limited company takes some effort and can be very time-consuming. It has to be sold or liquidated.