What Is an Aktiebolag?
An aktiebolag is a Swedish limited company. It is a separate legal entity from its owner, which means:- Limited liability — your personal assets are protected if the company runs into financial trouble
- Separate economy — the company has its own bank account, accounting, and tax filings
- Requires share capital — a minimum of 25,000 SEK (aktiekapital) must be deposited when forming the company
AB vs Enskild Firma — Which Should You Choose?
| Aspect | Enskild Firma | Aktiebolag (AB) |
|---|---|---|
| Liability | Personal — you are responsible for all debts | Limited — the company is a separate entity |
| Share capital | None required | 25,000 SEK minimum |
| Tax | Income tax + egenavgifter (~28%) on profit | Corporate tax (20.6%) + salary/dividends to yourself |
| Administration | Simple bookkeeping, no annual report requirement for most | Annual report (årsredovisning), board, sometimes auditor |
| Best for | Starting out, lower revenue, testing an idea | Higher revenue, want liability protection, long-term business |
How to Register an AB
- Choose a company name — check availability at Bolagsverket
- Create articles of association (bolagsordning) — a document describing the company’s purpose and rules
- Deposit share capital — transfer at least 25,000 SEK to a bank account opened for the company
- Register at Bolagsverket — submit your registration via verksamt.se, the joint portal for Bolagsverket and Skatteverket
- Register for F-skatt and VAT — done as part of the verksamt.se registration
- Wait for registration — typically takes 1–2 weeks
You can also purchase a shelf company (lagerbolag) for a faster start, but most freelancers register a new AB.
After Registration
Once your AB is registered:- Open a business bank account — required for all AB transactions
- Set up bookkeeping — either through software or an accounting firm
- Register in Aourly — when you log in with BankID, your AB will appear in your company engagements from Bolagsverket. Select it to start using Aourly with your company.
Tax Considerations
Running an AB involves several tax areas to be aware of:- Corporate tax — 20.6% on the company’s profit
- Salary to yourself — the company pays arbetsgivaravgifter (~31.42%) on top of your gross salary
- Dividends — governed by the 3:12 rules (fåmansbolagsregler) for closely held companies, which provide favorable tax rates up to a certain amount
- VAT — most consultants charge 25% moms and file VAT returns monthly or quarterly
- Annual report — an årsredovisning must be filed with Bolagsverket each year
Common Questions
Can I switch from enskild firma to AB?
Can I switch from enskild firma to AB?
Yes, but it is not a simple conversion. You typically form a new AB and transfer your business activities to it. Consult an accountant to handle the transition properly, especially regarding ongoing contracts and assets.
How much should I earn before switching to AB?
How much should I earn before switching to AB?
There is no fixed number, but a common guideline is that an AB starts making tax sense when you consistently invoice above 400,000–500,000 SEK per year. The break-even depends on your personal situation, expenses, and how much you can utilize the 3:12 dividend rules.
Do I need an auditor?
Do I need an auditor?
Small ABs are exempt from the audit requirement if they meet at least two of these criteria for two consecutive years: fewer than 3 employees, less than 3 million SEK in assets, and less than 1.5 million SEK in revenue. Most freelancer ABs qualify for the exemption.
What is aktiekapital and can I use it?
What is aktiekapital and can I use it?
Aktiekapital (share capital) is the minimum 25,000 SEK you deposit when forming the company. It becomes part of the company’s equity and can be used for business expenses — it does not need to sit untouched in the account. However, if the company’s equity falls below half the share capital, special rules apply (kontrollbalansräkning).
Sources: Bolagsverket, Skatteverket, Aktiebolagslagen (2005:551). Information current as of 2025. Rules and amounts may change — always verify with official sources.