Private and public limited companies

There are two types of limited companies in Sweden: private limited companies and public limited companies.

Private limited companies

A private limited company is usually owned by one or two people. To set up a limited company you must invest a minimum share capital of SEK 25 000 or the equivalent sum in Euros.

The shareholders elect the board of directors, which must consist of at least one member. If the board consists of only one or two members it must also have a deputy member. If the board consists of two or more members the board must appoint one of the members as chair of the board.

Appointing a managing director is optional in a private limited company. Appointing an auditor however is not, but there are exemptions from this rule if the company is small.

Apply for exemption from residency requirements

Public limited companies

The shares of a public limited company can be sold to the public. To set up a public limited company you must invest a minimum share capital of SEK 500 000 , or the equivalent sum in Euros.

A public limited company must have a board of directors consisting of at least three elected board members. One of the members must be appointed chair of the board. A managing director must also be appointed. The managing director can be a board member but not chair of the board.

A public limited company must appoint an auditor.

Tabel showing differences with private and public limited companies.

Criteria

Private limited company

Public limited company

Can sell shares to the public

No

Yes

Minimum share capital

SEK 25 000

SEK 500 000

Minimum amount of board members

1 member

3 members

Managing director

Optional

Mandatory

Auditor

Recommended and sometimes mandatory

Mandatory