Sweden: Decrease in share capital contribution
From the 1 of January 2020 the share capital contribution required to start a Swedish private limited liability company will decrease from 50 000 SEK (needed today) to 25 000 SEK.
The intention of the share capital requirement is that it shall be considered a protection for creditors and that it shall be considered as some sort of quality assurance for serious business. When lowering the share capital requirement, the protection for creditors become even less of a protection, and it will most likely not prevent unserious business.
For several years it has been an ongoing debate about the share capital requirement, and it has during the past been lowered. The decision for a further decrease of the share capital requirement is in line with the development in general in the European Union, where some entities can be registered with a capital requirement of 1 EUR.
The change of the share capital requirement can be motivated by a wider availability for the limited company form for persons that want to conduct business for example in the service sector where the need for capital is much lower than in other businesses.
If you have any questions related to setting up a business or register a private limited company in Sweden, please contact MORE (email@example.com)
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