What is a share certificate?
A share certificate is a document (originally always on paper) that acts as proof that you own one or more shares in a company. Historically, the share certificate was a formal security required to prove ownership and to be able to sell the shares.
Previously, physical share certificates were very common, but with digitalization, most Swedish limited companies have transitioned to electronic share registers and dematerialized (electronic) shares.
The role of share certificates today
In public (listed) companies, share certificates are almost never used anymore, as all shares are registered electronically in a securities depository.
For unlisted companies, especially smaller ones, share certificates are still legally valid and sometimes requested by owners to get physical proof of their investment. However, many newly started unlisted companies choose to skip share certificates altogether and rely entirely on the company's digital share register to prove ownership. This is safer and simpler.