AB company in Sweden (aktiebolag) — how it works and what it costs
Published: 2026-07-24
Aktiebolag (AB) is the Swedish limited company — a separate legal entity in which the owners' liability is limited to the capital they contribute. Setting up an AB requires share capital of at least SEK 25,000 and a board (styrelse), and the company keeps full accounts and files an annual report (årsredovisning) with Bolagsverket. In return, the owners' personal assets are, as a rule, separated from the company's obligations. Below we explain how an AB works, the roles, taxes, costs and who it suits. If you are comparing an AB with a sole proprietorship or looking for the full registration path, see our guides on starting a company in Sweden.
What is an AB company (aktiebolag)?
An AB is a limited company — a separate legal entity, distinct from its owners (shareholders). The key feature is limited liability: as a rule, owners risk only the capital they contribute, not their entire personal assets. This is the main difference from an enskild firma.
The company is formed by shareholders and a board (styrelse) responsible for running it. In smaller AB companies the board can be one person (often with a deputy, suppleant), and appointing a managing director (verkställande direktör) is not always mandatory. Note that limited liability does not apply if an owner signs a personal guarantee for the company's obligations — banks often require this at the start.
How much capital and which roles are needed?
An AB requires share capital of at least SEK 25,000 — a threshold lowered in 2020 from SEK 50,000. This is not a registration fee: the money stays in the company and can be used for its operations. The capital must be paid in and confirmed at registration.
In terms of roles, the company must have a board (styrelse); in smaller AB a single member is enough (usually with a deputy). A managing director (verkställande direktör) can be optional in small companies. Some roles may carry residency requirements (e.g. within the EEA), and registration needs Swedish identifiers and access to digital services. The rules are sometimes adjusted — confirm the current requirements before setting up.
How is an AB taxed and what accounting obligations does it have?
An AB is a separate taxpayer: it pays corporate income tax (bolagsskatt) on its profit. When the company distributes profit to an owner as a dividend, that is taxed separately at the shareholder level (special rules apply to close companies). In practice this means two levels of taxation, whose amounts and rules depend on the situation — confirm the details with a Swedish adviser. This guide is not tax advice.
An AB has full accounting obligations and files an annual report (årsredovisning) with Bolagsverket, where it becomes public. Smaller companies may, under certain conditions, opt out of an audit, but not out of reporting. On top of that come VAT (moms), F-skatt and employer obligations if the company hires.
What does an AB cost and who is it for?
The cost of an AB consists of: SEK 25,000 of capital (which stays in the company), a registration fee at Bolagsverket, and ongoing costs — full accounting, a possible audit and running the company. This involves noticeably more formalities than an enskild firma, but in return you get limited liability and greater credibility with counterparties and banks.
An AB suits you best when you plan to grow, want partners, plan to hire or operate in an area with higher financial risk. The table below summarises the main pros and cons of this form. Specific rates and thresholds may change — treat it as orientation, not as tax advice.
| Aspect | Pro | Con |
|---|---|---|
| Liability | limited to company assets | gone if you sign a personal guarantee |
| Capital | stays in the company, for operations | must contribute min. SEK 25,000 |
| Credibility | greater with banks and counterparties | — |
| Administration and tax | — | full accounting, årsredovisning, two levels of tax |
Frequently asked questions
- How much capital does an AB need?
- At least SEK 25,000 of share capital — a threshold lowered in 2020 from SEK 50,000. This is not a fee: the money stays in the company and can finance its operations. A registration fee at Bolagsverket is added separately.
- Does an AB protect personal assets?
- As a rule yes — the owners' liability is limited to the company's assets, so they are not personally liable for its debts. The exception is when an owner signs a personal guarantee (banks often require this at the start) — then that protection does not apply to that extent.
- How is an AB taxed?
- An AB pays corporate income tax (bolagsskatt) on its profit, and distributing profit to an owner (a dividend) is taxed separately at the shareholder level — that is, two levels of taxation. Special rules apply to close companies. Rates and rules depend on the situation and change; confirm the details with a Swedish adviser.
- Does an AB need an audit (an auditor)?
- Not always. Smaller AB companies may, under certain conditions (turnover, balance-sheet total and headcount thresholds), opt out of an audit. This does not exempt them from full accounting or from filing an annual report (årsredovisning) with Bolagsverket. Thresholds are sometimes adjusted — check the current figures.
- AB or enskild firma — which to choose?
- An AB is usually chosen with growth, partners, hiring or higher risk — because it limits liability but costs more and requires full accounting. An enskild firma is simpler and cheaper to start but comes with full personal liability. We expand on the comparison and the full registration path in our guides on the sole proprietorship and on starting a company in Sweden.
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This guide is for information purposes only and does not constitute legal or tax advice. Laws and registry rules may change — the information held in the relevant country's official registers is always decisive.