Ansvarsförening

Ansvarsförening, often translated as "responsibility association" or "responsibility company," is a type of business entity commonly used in Sweden. It is a form of limited liability company (LLC) that combines elements of both a private limited company (AB) and a public limited company (HB). The primary characteristic of an ansvarsförening is that it is owned by its members, who are also the primary decision-makers.

The members of an ansvarsförening are personally liable for the company's debts and obligations up to the amount of their capital contributions. This means that if the company's assets are insufficient to cover its liabilities, the members' personal assets may be at risk. However, this liability is limited to the extent of their investments, unlike in a public limited company where shareholders' liability is generally unlimited.

Ansvarsförening is a popular choice for small to medium-sized enterprises (SMEs) in Sweden due to its flexibility and the ability to issue different types of shares. It allows for a more democratic structure where members have a significant say in the company's operations and decisions. The company's profits are distributed among the members based on their shareholdings.

To establish an ansvarsförening, a minimum of two members is required, and the company must have a board of directors. The members can be individuals, other companies, or even foreign entities. The company's activities are governed by its articles of association, which outline the rules and regulations for the company's operation. Ansvarsförening is subject to Swedish company law and must comply with relevant regulations and reporting requirements.