Does your company fulfil the residency requirement after Brexit?

The UK left the EU on 31 January 2020. On 1 January 2021, the UK will also leave the EEA, which has consequences for certain companies.

Does your company have representatives who are resident in the UK?

On 1 January 2021, all representatives in limited companies, economic associations and branches, who are resident in the UK will be considered to be residents outside the EEA. A certain number of the representatives must live in the EEA. If the company has representatives who are resident in the UK, the board of directors might no longer fulfil the requirement on residency after 1 January 2021. You therefore need to review if the company fulfils the requirement.

Who must reside in the EEA?

These representatives in a limited company and an economic association must live in the EEA:

  • at least half of the board members, including employee representatives
  • at least half of the deputy board members, including employee representatives
  • the managing director
  • all deputy managing directors
  • at least one of the special company signatories, if there are any.

These representatives in a branch office must live in the EEA:

  • the managing director
  • all deputy managing directors.

Register new representatives

Limited companies and economic associations must choose new representatives at the general meeting so that the requirement on residency is met and then register the change with us. You can do the registration in our e-service at verksamt.se (in Swedish only) External link. .

Branches must choose new representatives so that the requirement on residency is met and then register the change with us. Use the form Application for changes for a branch, number 888 e (322 kB) Pdf, 321 kB. .

Apply for an exemption

You can also apply for an exemption from the residency requirement. Use the form Application for exemption from EEA residency requirements, number 814 e (227 kB) Pdf, 227 kB. .

Frequently asked questions

Here are some frequently asked questions regarding Brexit.

When is a representative considered to be resident in the UK?

We proceed based on the address that is registered or that the company has reported to us. Accordingly, a representative who has his or her address registered in the UK is considered to be a resident of the UK.

Can the company apply for an exemption on the basis of Brexit?

The company, association or branch should primarily review if it is possible to choose representatives so that the requirement on residency is met.

If the company, association or branch needs to apply for an exemption, we encourage them to do so well in advance of the end of 2020.

Does it cost as much to apply for and exemption on the basis of Brexit?

Yes, an exemption from the residency requirement currently costs SEK 475 for limited companies and associations and SEK 685 for branches regardless if the exemption concerns Brexit or not.

How long will the form Application for exemption from EEA residency requirements due to Brexit, no. 814 be, be available?

The form will be available a few months after 1 January 2021.

What applies if a company already has an exemption from the residency requirement today, must it be re-applied for given Brexit?

Yes, in most cases if the company has representatives who live in the UK.

What happens after 2020 with the companies that do not meet the residency requirement due to Brexit?

After the end of the year, we will register a remark in the registry that the residency requirement is not met. This means that the board of directors does not meet the requirements of the law.

How long is the processing time for exemption cases?

We process applications for exemptions due to Brexit on a running basis.

Will the company have its exemption approved?

We make an assessment in each individual case, but will be generous in our assessment of whether an exemption can be granted or not.

For what period of time will the exemption be granted?

We make an assessment in each individual case, but will be generous in our assessment regarding the time for the exemption.

Does Northern Ireland count as a country inside or outside the EEA after 1 January 2021?

Northern Ireland is a part of the UK and will not belong to the EEA after 1 January 2021.

Can a special process service recipient be registered so that a branch office can avoid applying for an exemption?

No.