aktiebolag

Aktiebolag (AB) is the Swedish term for a limited liability company, a corporate form that is a separate legal entity from its owners. The liability of the shareholders is limited to the amount they have paid for their shares, so personal assets are not at risk for the company’s debts.

There are two main types: private aktiebolag (private AB) and publikt aktiebolag (public AB). A private AB requires a minimum share capital of 25,000 kronor, while a public AB requires at least 500,000 kronor. The company can own assets, enter into contracts, sue and be sued, and issue shares to raise capital.

Governance and management: An aktiebolag is managed by a board of directors (styrelse) and, in many cases, a managing director (verkställande direktör). Shareholders appoint the board at the general meeting. The board is responsible for the company’s overall management and governance, while the MD/CEO handles daily operations. Public companies generally face stricter governance requirements and may have more independent directors.

Formation and registration: To form an AB, founders prepare articles of association (bolagsordning), appoint directors, and register the company with the Swedish Companies Registration Office (Bolagsverket). The company becomes a legal entity upon registration. It must have a registered office in Sweden and a unique corporate name that passes a name check.

Reporting and compliance: ABs must keep accounting records and prepare annual reports. Most ABs must hold an annual general meeting and file accounts with Bolagsverket. Audit requirements depend on size; smaller ABs may be exempt from mandatory audits but still have ongoing reporting obligations.