Establishing business in Sweden

Sweden is a well-established high-growth market and prominent international player, proud to have been the birthplace of many renowned multinational companies in industries such as the motor vehicle, telecommunications and technical industries to name just a few.

Are you considering joining this great market and starting a business in Sweden? Or maybe hiring a local Swede or sending someone from your organization to Sweden to expand your business?

While it may seem as straight forward signing an employment agreement with an employee or sending someone already within your organization, there are several aspects to consider before embarking on this journey.

Doing business in Sweden or having someone perform their work tasks from Sweden without any local business presence can often lead to registration and reporting requirements – both as an employer and as a company.

The ongoing global trend for individual nations to protect their tax base continues apace and the existence of permanent establishments has become a hot topic in Sweden in recent years. New registration and reporting requirements for foreign companies have also increased the Swedish Tax Agency’s permanent establishment reviews. More and more foreign companies are thus nowadays finding themselves having to register with the Swedish tax Agency and disclose information on their Swedish dealings.

KPMG Tax & Legal has identified a greater need from clients to receive broad spectrum and cross-practice advice and services when establishing a business in Sweden.

• permanent establishment reviews and the consequences thereof,
• legal advice on branch or company setup,
• employer and employee obligations,
• review of VAT obligations,
• residence and work permits,
• labor law assistance such as employment contracts, employee rights and employers’ obligations,
• establishing a profit allocation model to a permanent establishment,
• assistance and contacts registering with the Swedish authorities etc.