A trading partnership (handelsbolag) must have two or more partners. A trading partnership is a legal entity, but the partners are personally responsible for the partnership’s debts.
A trading partnership becomes a legal entity when it is registered with Bolagsverket. A legal entity may sign agreements, have employees, own things, and be a party of a legal trial.
When the trading partnership has been registered with Bolagsverket, it receives a registration number. The number is used as an identity number for contact with authorities and others.
A person who wishes to be registered in a trading partnership must not
- be declared bankrupt,
- be prohibited from carrying on business, or
- have a custodian pursuant to the Parental Code.
- The business name must contain the word “handelsbolag”.
- The partners are personally responsible for the agreements and debts of the trading partnership.
- If you become a partner in an already existing trading partnership, you will also become personally responsible for the partnership’s previously existing debts.
- If you are younger than 18, you need a guardian’s or chief guardian’s consent to enter into a trading partnership.
- A trading partnership with only natural persons registered as partners must have an auditor if the partnership is considered ‘large’. Read more on the page Auditor – trading partnership, where you also can see what applies when there are one or more legal entities registered as partners.
- If a trading partnership has legal entities registered as partners, or if the partnership is considered ‘large’, an annual report must be filed. Read more on the page Annual reports – trading partnership.
- There are no requirements for start-up capital.