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Limited company

Limited company

A limited company is a business form that is its own legal entity and is owned through shares.

What is a limited company?

A limited company (Swedish: aktiebolag, AB) is a business form in which the company is its own legal entity, separate from its owners. Ownership is divided into shares, and share owners are shareholders. It can be formed by one or more people or other companies.

 

What is required to start one?

A private limited company needs share capital of at least SEK 25,000 (since 2020), articles of association, a board and a share ledger. It is registered with Bolagsverket. A key benefit is that shareholders' liability is normally limited to the capital they invest.

 

A share ledger from day one

As soon as the company is formed a share ledger must be set up. Getting it right from the start saves time later — NVR helps you create a correct share ledger.

How NVR works for limited companies
Henrik Kristensen, NVR
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Related terms

Share

A share is a unit of ownership in a limited company that gives the right to vote and to receive dividends.

Share ledger

A share ledger is a record of a company's shares and who its shareholders are.

Shareholder

A shareholder is a person or company that owns one or more shares in a limited company.

Company

A company is a collective term for business forms run jointly, such as a limited company or partnership.