Sweden-dexin consulting

Sweden

As for GDP, Sweden is the 16th richest country in the world and citizens enjoy a higher standard of living. Sweden is an export-oriented mixed economy and timber, hydropower and iron ore are its resource bases of an economy that attaches great importance to foreign trade. The engineering sector in Sweden accounts for 50% of outputs and exports, while the telecommunications, automobile and pharmaceutical industries are also important.

Industry

Since the 20th century, Swedish industry has transformed from traditional industries with low added value, such as wood and iron ore processing, into modern industries with high technology and technical input, such as automobile, precision and professional engineering. By 2000, major industries include information technology (telephone, radio and computer equipment), communications, pharmaceuticals, precision equipment (bearings and weaponry), high-quality steel, automobiles, electric motors and other electrical equipment, printing material and publications (including software and Population music), home and office furniture, and processed food.
Law

Swedish company law is largely based on statute laws applicable to various specific legal entities in Sweden. Swedish companies can be operated as trade partnership enterprises, limited partnership enterprises, economic associations or sole proprietorship (unincorporated entities). Like other EU countries, Sweden can also establish a European company (SE) in accordance with No. 2157/2001 Council Regulation (EC) and No. 517/2013 Council Regulation (EU) on May 13, 2013, and register a European Economic Interest Group (EEIG) like other countries in the European Economic Area. However, foreign companies and investors usually do not choose these legal entities when establishing a business in Sweden, so they are not the part contained in Swedish company law. Foreign companies and investors that develop business in Sweden usually form subsidiaries in the form of a limited liability company and another choice is to set up a branch in Sweden.
Taxation

Swedish corporate tax is 21.4% and 20.6% after December 31, 2020. Resident taxpayers are taxed based on global income, while foreign taxpayers are only taxed based on the profits they earn in Sweden. There is no special tax rate for foreign companies. Business-related capital gains from the sale of shares in a resident company are usually tax-free. If the company holds shares equivalent to at least 10% of the voting rights, or has held shares for at least one year in the course of business, quoted/listed shares are considered to be held for business reasons; while unquoted or unlisted shares are always considered to be held for business reasons. Capital gains not related to business are treated as business income with a tax rate of 21.4%.
Advantages

Sweden has world-class infrastructure, highly-skilled workforce, low-level corruption, less bureaucracy and friendly business culture. Swedish business environment is extremely helpful to foreign direct investment and that is why Sweden is a country with a very innovative culture. Companies such as Ericsson, Volvo, AstraZeneca and Sandvik all rose from Sweden, and Spotify, Klarna and iZettle are all companies based on innovation. As the part of EU, Sweden provides market access for 28 countries and 510 million consumers. As the largest market in Scandinavia, Sweden is an ideal location for concentrated construction operations in northern Europe. In terms of its scale, Sweden is one of the world's largest beneficiaries of foreign investment. The Nordic economies are the one with the best macroeconomic performance in the western world in the past decade. Sweden, Norway, Denmark and Finland rank among the top ten economies in the world and have high purchasing power. Sweden's strong public finances, sound banking system, political stability and good economic performance make it a stable place to run businesses. Sweden has a good infrastructure through extensive public investment. The government has allocated 522 billion Swedish kronor (56 billion euro) for infrastructure projects in the next decade. Sweden is also one of the countries with the largest research and development investment in the world. Swedish companies benefit from close cooperation with new materials research institutions and products developed by industries.