Branch registration

A branch is the foreign company itself, operating in Sweden under a registered name. There is no separate legal personality and no liability shield: the parent's balance sheet and obligations extend straight through. That is the whole trade-off, and it cuts both ways: no share capital is required, and the branch's results consolidate directly into the parent.

The general rule is that a foreign company carrying on business in Sweden, other than through a subsidiary or an agent, must register a branch. That obligation is easy to trigger accidentally: a long-running project, a local team, or a tender requirement can all put you over the line before anyone has decided to establish here.

What we do

• Assess whether your activity actually requires a branch, or whether a subsidiary fits better
• Prepare the registration and the parent-company documentation
• Advise on the managing director appointment and the EEA residency requirement
• File with Bolagsverket and handle queries
• Set up the branch's separate accounting obligations with your provider

Branch or subsidiary

Most foreign groups arrive expecting a branch to be the lighter option and leave with a subsidiary. A branch avoids share capital and a separate audit in some cases, but it exposes the parent, complicates contracting with Swedish counterparties who prefer a local entity, and gives you less flexibility if you later sell the Swedish business. Where you intend to trade here for years rather than months, the AB is usually the better structure. We will tell you which, and why, before you commit.