Trading partnership | Companies guide

Content

A trading partnership (handelsbolag) is a business run by two or more partners. The partnership becomes a legal entity on its registration and is then issued with a registration number consisting of ten digits.

Responsibility and risk

In a trading partnership, there is only a certain dividing line between the business enterprise and its owners. It is true that the trading partnership is a legal entity, but as a partner you still assume personal financial responsibility. This can involve considerable risk.

As a partner, you are not only personally responsible but also jointly and severally liable (with the entire sum of your assets) for the partnership's debts. This means that anyone having a claim on the partnership can demand payment of the entire amount from any one of the partners. The partner who has met the claim may then demand payment from the business or from the other partners for their part of the debt.

The partners come to an agreement to carry on business in the form of a partnership. We recommend you to do this in writing, to avoid any argument about what was agreed on. The partners represent the partnership and have equal power. No one of them may act against the wishes of the other(s), unless this has been included in the agreement.

A trading partnership must keep accounts

It is compulsory for a trading partnership to draw up annual accounts. The financial year is always a calendar year, if at least one of the partners is a private person. The income from the partnership is to be declared in your own personal tax returns.

Advantages of a trading partnership

Even if this is a fairly simple form of business enterprise, you can still have partners. You do not necessarily need a large starting capital or an auditor.

Protection of business name

If you register as a trading partnership your business name will be protected only in the county in which your business enterprise is registered.

Register the company via the internet

Use the webservice verksamt.se to register a trading partnership. You can also use application form Registration of a new enterprise – trading partnershop, nr 901 e, which should be sent in the original.

A piece of good advice

Do not order any stationery, printed matter, signs, etc. until your business and the name you applied for have been registered.