- The business activities of a Swedish Economic Association (“Ekonomisk förening”) must be of financial benefit to a member, for example as producer, consumer or employee.
- An Economic Association must also be open to all and, in principle, it cannot refuse membership to anyone.
- A Swedish Economic Association (“Ekonomisk förening”) is formed by three or more natural persons or legal entities.
- All members of an Economic Association may be foreign nationals or companies and no special acquisition permit is required.
- The Economic Association is a legal entity and is issued with a registration number (“organisationsnummer”).
Board and Managing director
- The board of an Economic Association shall consist of at least three members; normally also members of the Association.
- A managing director has to be appointed in an Economic Association only if the Association has more than 200 employees.
- An Economic Associations must keep accounts and shall prepare annual reports kept available to the public.
- Normally, an Economic Association does not need an approved or authorized public accountant. The auditor appointed must be competent enough to audit the Association´s activities. However, independent auditors may be required in large Associations.
- The registered business name of an Economic Association is protected throughout the country.
- A limited company may have a split financial year, which can facilitate financial planning with regard to taxes, credits, salaries and interest.
Responsibility and risk
- Every member of an Economic Association has to pay an agreed amount as contributed capital. It is also normal to pay an annual membership fee. There is, however, no requirement for a fixed capital comparable to the share capital of a limited company.
- In spite of this, the members have no personal responsibility for the debts or other obligations of the Association.
- N. B.!! The board of directors and the managing director, if any, has extensive responsibility and in certain circumstances, these persons can become personally responsible for the Association’s debts; especially unpaid taxes and social contributions.