Swedish small business boom expected as rules change

Swedish small business boom expected as rules change
It's becoming even easier to set up a private limited company in Sweden. Photo: Janerik Henriksson/TT
Entrepreneurs across Sweden started 100,000 more new businesses in the past decade compared to the previous ten years, and the figure is expected to keep growing.

In 2010-2019 almost 649,000 new businesses were set up in Sweden, according to a fresh report by accounting software provider Visma using statistics by the Swedish Companies Registration Office (Bolagsverket). That's a rise of 18.5 percent on 2000-2009, when 548,000 businesses were founded.

In the same period the number of new limited companies more than doubled from 212,000 to almost 435,000. The reason for the boom in such firms may be down to a rule change, according to Visma.

You used to have to invest a minimum share capital of 100,000 kronor ($10,650) to set up a private limited company, but this figure was lowered to 50,000 kronor in 2010 which is thought to be behind the increase.

“This shows that changes to laws and regulations actually have an impact and can provide a nudge in the right direction,” said Visma Spcs business expert Boo Gunnarson in a statement.

“That's why even more new businesses are to be expected now that the requirement for private share capital has been cut even further,” he added.

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And it's becoming even easier to turn your business venture into a limited company. The minimum share capital was cut to 25,000 kronor as of January 1st, 2020, in order to boost small businesses.

There are around one million businesses registered in Sweden, with the majority small companies with fewer than nine employees. A total of 64,464 new businesses were started in 2019, a one-percent increase compared to the year before, when 63,620 new businesses were set up in Sweden.

Vocabulary

limited company – (ett) aktiebolag

employee – (en) anställd

business – (ett) företag

share capital – (ett) aktiekapital

small businesses – småföretag

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