bolag

Bolag is the Swedish term for a company or corporation. In Swedish business law, a bolag is a legally independent entity created to conduct commercial activities, own assets, and enter into contracts, separate from its owners. The term covers several forms, of which the most common are aktiebolag (AB), handelsbolag (HB), and kommanditbolag (KB). An ekonomisk förening is also described as a bolag in everyday usage, though it has a cooperative character.

Aktiebolag, or AB, is the standard form for a limited liability company. Shareholders own the company through shares, and liability is limited to the contributed share capital. Private ABs require a minimum share capital, and public ABs require a higher minimum capital. An AB is managed by a board of directors and a managing director, and it must hold an annual general meeting. It is registered with the Swedish Companies Registration Office (Bolagsverket) and must prepare an annual report and pay corporate tax.

Handelsbolag, or HB, is a general partnership where partners have joint and several liability for the business’s debts. Kommanditbolag, or KB, combines general partners with unlimited liability and limited partners whose liability is limited to their contributed capital. In a KB, limited partners typically do not participate in day-to-day management.

Registration and regulation: Bolagsverket handles company registration; Skatteverket administers taxation, VAT, and payroll matters. Larger bolag may be subject to audits and stricter reporting requirements. The choice of bolag affects liability, governance, taxation, and ongoing reporting obligations, as well as the ability to raise capital and operate domestically or internationally. The term bolag is also used generally to refer to a business enterprise, regardless of its legal form.