Branch

A foreign company wishing to operate in Sweden without registering a subsidiary may open a branch. A branch is a foreign company's local office in Sweden with its own administration and corporate identity number.

A branch is not the same as a limited company

A branch is part of a foreign-based company and is not a legal entity. If a foreign company wishes to carry on business in Sweden, it can do so through a branch. You do not get a limited company by registering a branch. A branch has a Swedish company registration number and is subject to Swedish law but it is not a legal entity.

Make sure you know about the requirements for starting a branch and for the foreign-based company before you register a branch.

If you choose to register a branch, there are requirements to be met for both the branch and the foreign-based company connected to it. Here are some examples:

• The branch must keep its own accounting records, kept separate from the foreign-based company.
• Every year the branch must file an annual report for the foreign-based company and in some cases for the branch as well.
• Taxes and other charges must be paid as required.
• The foreign-based company must follow the rules that apply in Sweden.

It is a good idea to contact your bank, the Swedish Tax Agency (Skatteverket) and an accountant for advice before you register a branch.

We also have information about starting a limited company.

Set up a limited company

Some typical features of a branch

• A branch is not a separate legal entity, it is a part of the foreign-based company.
• A foreign company may only have one branch in Sweden.
• The foreign-based company shall appoint a managing director to run the business activities in Sweden.
• The managing director represents the branch and is responsible for registering the branch with Bolagsverket.
• A branch is subject to Swedish law and the decisions of Swedish authorities regarding legal matters in connection with its business activities in Sweden.
• A branch has no independent capital and its assets and liabilities are a part of the total assets of the foreign-based company.
• A branch is to keep its own accounting records, and these are to be kept separate from the foreign-based company. Read more on the page Annual reports for branches.
• The accounts of a branch and the administration of the managing director are, when required, subject to examination by an authorized or approved public accountant.
• When a branch has been registered with Bolagsverket, it receives a Swedish registration number.