Do you need to register a branch?

Foreign companies have to run their business activities in Sweden through a branch, unless their operations here are in a Swedish subsidiary or an agency. If you do not want to register a branch you can apply for an exemption.

When do you have to register a branch?

Here are some examples of factors that may mean that a foreign company needs to register a branch:

  • The business activity is professional
  • The business activity is carried out for profit and acquisition purposes
  • The company regularly sells goods or services in Sweden
  • The business activity is long-term
  • The business activity is extensive (financially or in terms of the number of employees)

In some cases a foreign company does not need to register a branch

There are exceptions to the requirement for registering a branch, e.g. for:

  • Transports to and from Sweden, of both passengers and goods
  • Advertising and exhibiting goods
  • Taking orders for goods and similar
  • Artistic activity
  • Individual commissions
  • Works contracts undertaken during a maximum of 1 year
  • Business activities comprehended by the provisions on the free movement of goods and services in the EEA Treaty, or corresponding provisions in the EEA Agreement (this applies if the company is only temporarily carrying out business activity in Sweden)

Applying for an exemption

If you are unsure of whether you need to register a branch, or if you know that need to but wish not to, you can apply for an exemption. We will then determine whether we consider requirements for registering a branch to be present, and whether there are any reasons for granting an exemption. You will receive a reply from us when we have reached a decision.

Contents of the application

There is no form for this, instead you have to write your own application for an exemption in which you describe the business activity and its setup in Sweden. It is helpful if you describe the following:

  • Type of business activity
  • How the activity in Sweden is going to be carried out
  • Number of employees
  • Turnover
  • Duration
  • Fixed place of business

If we need more information in order to reach a decision in the matter we will ask you to provide it.

Application fee

Fees for a branch.

The fee for applying for an exemption from the requirement to register a branch is SEK 1,200.

Appeal

If we decide not to grant you an exemption from the requirement to register a branch, you can appeal our decision to the Administrative Court.

Frequently asked questions

Below are some frequently asked questions about the requirement to register a branch, and answers to them.

How do I know if I have to register a branch?

The principal rule is that if a foreign company is carrying out business activity in Sweden, and is not doing so via a subsidiary or an agency, it has to register a branch.

If you want a definitive decision you have to apply for an exemption from the requirement to register a branch. We will then examine whether this requirement applies for you in the first place. If we determine that it does, we will then examine whether there are any reasons to grant an exemption.

The company only has one employee in Sweden, without any extensive business activities being carried out in the country. Do I have to register a branch?

There are different factors which determine whether you need to register a branch or not. Even if the company only has one employee, there may be other factors that oblige you to register a branch. Read more under the heading “When do you have to register a branch?”.

When is a business activity temporary?

There is no general answer to this question. A rule of thumb is between 6 months and 1 year – i.e. if the business activity is going to be carried out for a maximum of 6 months or a maximum of 1 year it may be considered temporary and therefore not require registration of a branch. But there may be other factors that nevertheless oblige you to register a branch, such as what type of business activity it is, what its turnover is, and how many employees it has.

Construction activities carried out for a maximum of 1 year do not need to register a branch.

The company already has a fixed place of business registered with the Swedish Tax Agency. Do I have to register a branch?

A registration with the Swedish Tax Agency is not the same thing as registering a branch with us at the Swedish Companies Registration Office. You may therefore need to register a branch with us even if your company is registered with the Swedish Tax Agency.