Sweden Capital Stockholm Currency Swedish krona (SEK) Language Swedish Population 9.02 million EU status member GDP 2006 $371.5 billion Employment 94.4% Exports $173.9 billion f.o.b. (2006 est.) Imports $151.8 billion f.o.b. (2006 est.)

Setting up business Number of days to start business 16 Cost (% of income per capita) 0.7% Nonwage labor cost (% of salary) 32.7% Total tax rate (% profits) 57%

 

Sweden

A 2004 report identified Sweden as the most innovative country in Europe

Sweden offers an innovative business climate to foreign investors with a highly diversified economy, headed by industries such as IT, engineering and design, pharmaceuticals and biotechnology. Sweden has excellent relations with the US, which has been responsible for some 30% of all FDI projects in Sweden since 2002, according to consultants Locomonitor, making it the biggest single investor in the country. Other major source countries for FDI include the UK, Finland, Norway and Germany.

Dynamic and innovative

Sweden is an excellent country for ICT investment and business, as many investors have recognized – 23% of all foreign direct investments in Sweden are ICT based. According to a recent study, new products are adopted faster in Sweden than almost anywhere else in the world – and many of them are invented here, too, including GSM and Bluetooth.

Research and development is flourishing in the medical and biotech sector, with some 400 companies involved in the sector. Major FDI investors, including AstraZeneca and Akzo Nobel, are locating in Sweden, taking advantage of three of the largest biotechnology clusters in Europe, in Stockholm, Gothenburg and Lund.

Creative and open

In 2004, a report by Professor Richard Florida of the School of Public Policy at George Mason University identified Sweden as the most creative country in Europe. Sweden is driven by an intense knowledge-based workforce, and the widespread use of advanced technology and innovative solutions in business and the public sector sets the tone for a dynamic investment climate.

International investors will find Sweden an easy country in which to establish and operate a business. The combination of skilled professionals, good language abilities and a practical approach to doing business contribute to smooth procedures. There is an openness to international ownership and new concepts.

Location location location

Sweden’s location makes it an ideal gateway to northern Europe, including the highly sophisticated markets to be found in its Scandinavian neighbors, and the rapidly growing economies in the Baltic countries and Russia. Reliable transportation and communication links all the countries in the region. Sweden’s position as a hub in the fast-growing Northern Europe/Baltic Sea region has led to continued high demand for externally managed services, such as contact centers and third-party logistics. There are currently some 28 FDI projects in this sector in Sweden, including DHL, Goodyear Dunlop, Teleperformance and Prologis. Sweden is likely to become even more attractive to companies in this sector as the Baltic states continue to develop their own port, road and rail infrastructures, making onward connections from Sweden more rapid and efficient than ever.

Setting up a business

There are no restrictions on foreign ownership of companies in Sweden, and setting up a company is a swift and efficient process. An off-the-shelf company already fully organized and registered can be acquired for a nominal fee from law firms or consultant firms. The share capital must be at least SEK100,000 in a private limited liability company and SEK500,000 in a public limited liability company. In addition, it is possible to set up a Swedish branch of a company registered outside Sweden without permission from the Swedish authorities.

Corporate income tax is set at 28%, although employers established in the north of Sweden are allowed a partial reduction of the social security fees payable. There are also grants linked to investments in fixed or intangible assets and to hiring, training and educating personnel. Finally, there are tax reductions available for foreign key personnel. Sweden has comprehensive tax treaties with most countries for the avoidance of double taxation, and the government is in the process of removing exit taxation on stock options.

AMCHAM Sweden

The American Chamber of Commerce in Sweden was established in 1992 and is a non-profit organization for US companies in Sweden, or other companies benefiting from membership, and has more than 230 member companies. The Chamber works to develop Swedish–American business interests within Sweden by providing advocacy, networking, business information and knowledge sharing.

 

Contact Information

American Chamber of Commerce in Sweden
Jakobs Torg 3, PO Box 16050
103 21 Stockholm
Sweden
Tel: +46 85 061 2610
E-mail: amcham@chamber.se
Website: www.amchamswe.se

 

Useful websites

www.isa.se	Swedish Investment Agency
www.ams.se	International employment and recruiting information
www.konj.se	National Institute of Economic Research
www.migrationsverket.se	Swedish migration board — relocation information
www.bolagsverket.se/in_english	Companies registration office
www.swedepark.se	Swedish science and technology parks
computersweden.idg.se/itguide	Guide to the Swedish IT industry

 

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