What is a private limited company?
In Sweden, limited companies are divided into two categories: private limited companies (AB) and public limited companies (publ). The vast majority of unlisted companies and early-stage startups operate as private limited companies.
Requirements and rules
- Share capital: Minimum requirement of 25,000 SEK in starting capital.
- Investments: A private company may *not* offer shares or distribute advertisements about share purchases to the general public.
- Board & Management: The rules for the board and CEO are not as strict as for public companies (for example, there is no legal requirement to have a CEO, and the board can get by with fewer members).