Thursday, November 03, 2005

Part III – Swedish Sole Trader (”Enskild firma”) - Forms of Business Ventures in Sweden

Sole Trader (“Enskild firma”)

  • A sole trader is a natural person who runs a business and represents it her/himself. The business is not a legal entity and, thus, the sole trader is personally liable for the debts accumulated in the business, the performance of contracts etc.

  • If a person not domiciled in Sweden wishes to trade as a sole trader in Sweden, he or she has to appoint a manager domiciled in Sweden, who will then be the person responsible for the business activities.

  • If the activities carried on by the sole trader is such that he would have been obliged to keep accounting records according the otherwise obsolete Book-Keeping Act of 1929, he has to register the business with Bolagsverket (the Swedish Companies Registration Office) Registration is always necessary for businesses involving trade in goods, chattels, securities or real estate, legal practise, patent offices and theatres.

  • Registration is made in the trade registry for the county in which the business is carried on and the business name is protected only in that county. However, it is allowed to apply for registration in the trade registry of more than one county.

  • The identity of the business is tied to the Swedish social security number (“personnummer”) of the sole trader. The business registered is not assigned a separate identity number and, thus, several different businesses may be registered under the same number.

  • The business name may be selected freely but may not be misleading or too general.

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