Sole proprietorship in Sweden (enskild firma) — taxes and costs
Published: 2026-07-24
Enskild firma is the Swedish sole proprietorship — the simplest business form, run by one person responsible for the business. It requires no capital and is cheap to set up, but the owner is liable for obligations with their entire personal assets. For tax, the business is reported together with the owner's income, and a key element is the F-skatt approval. Below we explain liability, taxes, costs and VAT (moms) in an enskild firma, and who this form suits. To compare it with an AB company or see the full registration path, see our umbrella guide on starting a company in Sweden.
What is an enskild firma?
An enskild firma is a business run by one person who is personally responsible for it. The business is not a separate legal entity distinct from the owner — this is the key difference from an AB. In practice, the owner is liable for the business's debts with all of their assets, including personal ones.
Instead of a separate company number, an enskild firma uses the owner's personal number (personnummer) and a Swedish organisation number tied to the person. The form is most often chosen by freelancers, tradespeople and those starting out on a small scale who value simplicity and a low start-up cost.
How is an enskild firma taxed, and what is F-skatt?
An enskild firma's profit is taxed as the owner's personal business income (näringsverksamhet) — there is no separate company tax. On the income you pay income tax and the entrepreneur's own contributions (egenavgifter). During the year you usually pay advance tax (preliminär skatt) set on estimated income.
A key element is F-skatt — an approval at Skatteverket meaning the business handles its own tax and contributions. Without F-skatt a client may be required to withhold tax, so most businesses apply for it. Specific rates and rules depend on the situation and change — confirm the settlement with an accountant or adviser. This guide is not tax advice.
What does it cost and what obligations does it have?
An enskild firma is cheap to start: it requires no capital, and registering tax matters (F-skatt, moms) at Skatteverket is essentially free. Optional registration of the business name at Bolagsverket carries a fee but is not mandatory. This is the main cost advantage over an AB.
Obligations are simpler than in an AB: the business keeps accounts (bokföring), files tax and — once turnover exceeds the threshold (currently around SEK 120,000 a year) — registers for VAT (moms). An enskild firma usually has no audit requirement. If it hires, employer obligations apply. The main risk is not the cost but personal liability.
Who is an enskild firma for, and when is an AB better?
An enskild firma suits a small scale, a single owner and limited risk best — when you value simplicity and a low start-up cost. As turnover grows, with hiring, partners or greater financial risk, limiting liability — which an AB provides — matters more. The table below summarises the main pros and cons of an enskild firma.
| Aspect | Pro | Con |
|---|---|---|
| Start-up | no capital, cheap registration | — |
| Liability | — | full, with personal assets |
| Administration | simpler accounting, usually no audit | no clear separation of business from person |
| Tax | no separate company tax | profit as personal income + egenavgifter |
Frequently asked questions
- Does an enskild firma separate business assets from personal ones?
- No. In an enskild firma the business is not a separate legal entity, so the owner is liable for its obligations with all of their assets, including personal ones. This is the key difference from an AB, where liability is limited to the company's assets.
- What is F-skatt and why does it matter?
- F-skatt is an approval at Skatteverket meaning the business handles its own tax and contributions. Without it a client may be required to withhold tax from payment, which complicates cooperation — so most businesses apply for F-skatt, and counterparties often check for it.
- How much does it cost to start an enskild firma?
- An enskild firma requires no capital, and registering tax matters (F-skatt, moms) at Skatteverket is essentially free. A fee only appears with the optional registration of the business name at Bolagsverket. The main costs are ongoing accounting, not the registration itself. It is worth confirming current fees.
- Does an enskild firma need VAT (moms)?
- As a rule a Swedish business is subject to VAT (moms), but the smallest businesses below a turnover threshold (currently around SEK 120,000 a year) may use an exemption. Registration is handled by Skatteverket. The threshold is sometimes changed, so confirm the current figure and whether it applies to you with an adviser.
- When is an AB better than an enskild firma?
- Usually when financial risk grows, you plan to hire, want partners or want to separate business assets from personal ones. An AB limits liability to the company's assets but requires SEK 25,000 of capital and full accounting. We expand on the comparison in a separate guide on the AB company.
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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.