Open a Sole Trader in Sweden
Learn how to register a sole proprietorship (enskild firma) in Sweden, from choosing the business name to tax registration. Contact our lawyers for help.
If you want to open a sole trader in Sweden, our lawyers are at your disposal with various services.
| Quick Facts | |
|---|---|
| Applicable law | Swedish law (specifically the “Lagen om företagsnamn” and “Skatteförfarandelagen”). |
Special requirements related to the name (YES/NO) | No, the business name can be anything, but it cannot mislead or infringe on existing trademarks. |
Activities permitted | All legal business activities. |
| Registration availability for foreigners (YES/NO) | Yes, on certain conditions. |
| Special requirements for foreign citizens (if any) | Must have a Swedish personal identification number (personnummer) or coordination number (samordningsnummer) to register. |
| Authority to be registered with | Swedish Tax Agency (“Skatteverket”). |
| Tax registration required (YES/NO) | Yes, registering with the Swedish Tax Agency for tax purposes is mandatory. |
| VAT registration requirement (YES/NO) | Yes , if the annual turnover exceeds SEK 120,000 (approx. EUR 11,000). |
| Taxation of sole traders in Sweden | Sole traders in Sweden are taxed on personal income, and the business’s profits are added to the individual’s income tax. |
| Personal income tax rate | Progressive tax rate. The national income tax rate is 20% (above a certain threshold), and municipal taxes range from about 29% to 35%. |
| Minimum share capital required (YES/NO) | No |
| Local bank account required (YES/NO) | No. Recommended for clear financial records, though not mandatory. |
| Registration steps | Obtain the Swedish personal identification number, Register with the Tax Agency for a F-tax certificate, Apply for VAT registration with the Tax Agency (if necessary, based on your turnover), Open a business bank account (optional but recommended), Start operating your business once registered. |
| Registration documents | Personal identification number (personnummer) or coordination number (samordningsnummer), Completed registration forms for tax purposes from the Swedish Tax Agency, A description of your business activity (in some cases), Proof of a Swedish address (e.g. utility bill, lease agreement). |
| Support in setting up a sole trader in Sweden (YES/NO) | Yes, we offer support in setting up a sole trader in Sweden and many other business types. |
Who can operate a sole proprietorship in Sweden?
Both Swedish and foreign citizens can set up sole traders in this country.
Are there any special requirements to comply with if I am a foreigner setting up a sole proprietorship in Sweden?
If you are a non-EU/EEA citizen, you must obtain a Swedish residence permit before registering as a self-employed person.
You must also obtain a coordination number with the Swedish Tax Agency.
What are the main characteristics of the sole proprietorship in Sweden?
The following:
- it can be created by a single natural person;
- the person must be at least 16 years of age;
- the applicant must not have been declared personally bankrupt;
- the applicant must not have been convicted of any crime related to trading activities;
- it is a non-corporate business form, which means the person has unlimited liability for the business’ obligations;
- it is also subject to different tax criteria than companies in Sweden;
- it does not require a minimum capital.
What are the steps to open a Swedish sole trader?
The procedure of setting up a sole proprietorship in Sweden is quite simple and implies the following steps:
- filing an application with the Swedish Tax Administration office in your city;
- registering as an employer, which is an optional step.
Do I need to reserve a special trading name as a sole trader in Sweden?
No, you are not required; however, you can do that, especially if you want to have your name protected. Then, you can also proceed to have it registered as a Swedish trademark.
Do I need to apply for a VAT number as a sole trader in Sweden?
VAT registration becomes mandatory if your annual turnover exceeds SEK 120,000 per year.
Our Swedish accountants can guide in the procedure if you want to perform this action voluntarily.
Do I need to apply for any specific license when doing business as a sole trader in Sweden?
It depends on the type of activity undertaken. You may need a special business license, a permit to use the premises for your activity, or both.
You can consult with one of our Swedish lawyers on this aspect based on the operations you will carry out.
How long does it take to register a sole proprietorship in Sweden?
Approximately one week.
What are the tax responsibilities of a sole trader in Sweden?
Just like any other business, a sole proprietorship must also pay taxes in Sweden. Among these, we mention the following:
- the income tax;
- the value added tax;
- social security premiums.
You should also know that any business expenses will come out of your pocket, as there is no legal distinction between your person and the company.
If you need accounting services for your business, our CPA in Sweden is at your disposal.
If you need support in setting up a sole trader in Sweden, do not hesitate to get in touch with our law firm. We are at your disposal with various services connected to your small business.
Johan Olehäll, Lawyer · 13 October 2026Johan Olehäll has an LL.M. (Master of Laws) and is founder of VS Legal Counsel.