Lexon Incorporations: Corporate, accounting, trust
Lexon Incorporations: Corporate, accounting, trust
Sweden: Limited Partnership

General information about the country

Sweden has existed as a united and independent country since the Middle Ages. The Kingdom of Sweden has never been under the rule of any other country and has maintained independence at all times.

The political system of Sweden is a constitutional monarchy and the status of the king has continued since the Middle Ages. The king has no actual power, and in practice is a government official with a purely representative function.

Whilst the only official language of the country is Swedish, English is spoken very widely and used in most cases associated with international practice.

Sweden is a member of the European Union but continues to use Swedish krona (SEK) as its national currency, having not adopted the Euro.

Legislation

Whilst Swedish legislation is based on civil law, the Roman law played a less prominent role in the development of legal systems in the Scandinavian countries than, for example, in France or Germany. In the Scandinavian countries, there are no codes similar to the French Civil Code or the German Civil Code. Judicial practice in Scandinavia plays a more significant role than in the continental Europe.

Legal acts of Sweden are approved by the Parliament being the Riksdag, which is re-elected every four years.

It is possible to establish in Sweden either a standard company or a partnership (Kommanditbolag). To establish a partnership, there must be at least one partner who is fully responsible for the liabilities of the partnership (the General Partner), and at least one partner with limited liability (the Limited Partner).

Corporate characteristics:

Main:
Company typeLimited Partnership
Corporate legislationTrading Partnership Act of 1980
Language of company documentsSwedish, English
Corporate endingKommanditbolag
Authorised capital:
Minimum amountSEK 2
Standard amountSEK 1,000
Standard currencySEK
Permitted currenciesSEK, EUR
To be paidNo regulations
Shareholders:
Minimum number2
Maximum numberNo restrictions
Publicly accessible recordsYes
Directors:
Minimum numberNot considered by law
Local directorNot considered by law
StatusNot considered by law
Publicly accessible recordsNIL
Secretary:
Minimum numberNot considered by law
Local secretaryNot considered by law
Publicly accessible recordsNIL
Reports:
Filing an Annual ReturnYes
Fiscal yearEstablished by the company
Financial StatementsYes
Publicly accessible Financial StatementsYes
AuditorDepending on criteria (see below)
Filing a Tax ReturnYes
Corporate taxation:
On trading incomeKB is not considered as separate taxpayer
On passive incomeKB is not considered as separate taxpayer
Double Tax Treaty network:Not applicable to KB with foreign members

Additional information on taxation

Taxation in Sweden is controlled by the Swedish tax authority (Skatteverket) and the standard corporate tax rate is 22%.

A Swedish Limited Partnership must file a tax return for each year of operations by 2nd May in the year following the reporting year.

A partnership in Sweden is treated as a transparent entity for tax purposes in that the taxable subjects are the members themselves rather than the partnership.

A Swedish Limited Partnership which does not have Swedish residents as members and which does not have income received in Sweden is not subject to tax at the level of the partnership.

A Swedish Limited Partnership must prepare financial statements. The statements must be certified by a licensed auditor if the company meets at least two of the following three criteria:

Conclusions

A Limited Partnership in Sweden is a reputable and prestigious instrument. It can be used both for trading and holding purposes.

Some corporate features of a partnership in Sweden are similar to United Kingdom Limited Partnerships:

  1. It is not compulsory that a physical person is appointed as a director of a Kommanditbolag.
  2. It is not compulsory that an Operating Agreement is registered with the Companies Registration Office. An Operating Agreement for a Kommanditbolag is a private agreement between the partners.

It is important to note that legal maintenance of a Swedish Limited Partnership requires strict compliance with the regulations for preparing and filing of financial statements, as well as filing of tax returns with the Swedish tax authority (Skatteverket).

http://lexcorp.com/en/jurisdictions/sweden_kb/ - Sweden: Limited Partnership

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