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Doing business in sweden
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Doing business in Sweden, a country overview

Doing business in Sweden, a country overview

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Doing business in sweden Presentation Transcript

  • 1. Doing Business in Sweden Sherif Mohamed Stefan Schübel
  • 2. Agenda Geography & History Demography Economic Status Doing Ease of BusinessBusiness in doing Entities Tax Labor Law Sweden business Business Culture
  • 3. GEOGRAPHY & HISTORY 3
  • 4. 4
  • 5. GeographyCountry • Size: 450,295 km2 • 3rd largest country of the EU • Ranked 55 biggest globally • Divided in 21 countiesScenery • 53 % Forest • 11 % Mountains • 8 % Cultivated Land • 9 % Lakes (e.g. Vanern) & Rivers (Ume, Torne, Angerman)Natural Resources • iron, ore, copper, lead, zinc, gold, silver, tungsten, uranium, arsenic, feldspar, timber, hydropower. Geography & History * Demography * Economic Status * Doing Business in Sweden * Business Culture 5
  • 6. History• The Viking era (800-1050 AD).• Christianity began in the 9th century.• 14th century it united with Norway and Denmark.• Independence from the Danish occupation in 1523 under Gustav I Vasa.• Great European power.• Neutrality during both World Wars.• Joined the European Union in 1995. Geography & History * Demography * Economic Status * Doing Business in Sweden * Business Culture 6
  • 7. Nobel Prize• chemist, engineer, entrepreneur, innovator• invention of Dynamite in 1867 to be used in mining• Alfred Nobel formed the Noble prize due to regrets of using dynamite in wars Geography & History * Demography * Economic Status * Doing Business in Sweden * Business Culture 7
  • 8. DEMOGRAPHY
  • 9. DemographyGeneral• Human Development Index: 0.885 in 2010• Ranked place 9 out of 169• GNI: $36,936 Geography & History * Demography * Economic Status * Doing Business in Sweden * Business Culture 9
  • 10. DemographyPopulation• Number inhabitants: 9,433,875  22 inhabitants / km2• 90% live in the south• 85 % live in cities• Average family: 1.26 children• Life expectancy men: 79• Life expectancy women: 83 Geography & History * Demography * Economic Status * Doing Business in Sweden * Business Culture 10
  • 11. DemographyLanguages• Total: ~ 200• Most Common: Swedish, English, Finnish, all Sami dialects, Torne Valley Finnish (Meänkieli), Romani and YiddisEthnic groups• Swedes, Finns, Sami• Immigrants: Iraquis, ex Yugoslavia nationals, Somalis, Iranians, Norwegians, Danes, Turks and Poles Geography & History * Demography * Economic Status * Doing Business in Sweden * Business Culture 12
  • 12. DemographyReligions• 87 % Evangelical Lutheran• 13 % Roman Catholic, Orthodox, Baptist, Muslim, Jewish and BuddhistWeather• Influences: Gulf Stream, Atlantic winds• South: temperate• North: subarctic Geography & History * Demography * Economic Status * Doing Business in Sweden * Business Culture 13
  • 13. DemographySociety• “Swedish welfare policy”Large public sector + welfaresystem• “the Swedish model”• “the third way”• “ the middle way” Geography & History * Demography * Economic Status * Doing Business in Sweden * Business Culture 14
  • 14. Government• Constitutional Monarchy.• Civil law system is influenced by the Roman-Germanic Authority law. Monarch Legislative Executive Judicial Branch Branch Branch Geography & History * Demography * Economic Status * Doing Business in Sweden * Business Culture 15
  • 15. ECONOMIC STATUS
  • 16. Economic StatusCurrency• 1873 introduced krona (SEK) = 100 öre• In 2003 56% of the Swedes denied the Euro• 1 Euro = SEK 9.1802Imports / Exports• Imports (2010): 106710 million €• Exports (2010): 113600 million €• Net Trade of goods: 6890 million € Geography & History * Demography * Economic Status * Doing Business in Sweden * Business Culture 17
  • 17. Economic StatusGDP• National Accounts of GDP: € 83,250 million• GDP per Capita: € 35,260Inflation• Inflation rate May 2011: 3.3%• Consumer price increased by 0.2 % Geography & History * Demography * Economic Status * Doing Business in Sweden * Business Culture 18
  • 18. Economic StatusLabor market• Employment: 4,606,000 people• Unemployment: 395,000 people• Unemployment rate 7,9 %Interest rate• Short-term treasury discount notes: 1.91%• Long-term government bonds: 3.01% Geography & History * Demography * Economic Status * Doing Business in Sweden * Business Culture 19
  • 19. Economic StatusMain economic activities• Core industries with high level of investment: engineering industries, forestry, information and communication technology, biotech and life science industries, environmental industries and renewable energy and functional foods• “Swedish economic miracle”Biggest companies• Volvo, Vattenfall, Ericsson, Skanska AB, SCA, H&M Hennes & Mauritz• http://www.youtube.com/watch?v=fFHRAuvjOtQ&feature=related Geography & History * Demography * Economic Status * Doing Business in Sweden * Business Culture 20
  • 20. Economic StatusR & D• Leading position in scientific R &D• Highest gross expenditures per capita• Carried out by universities and institutions of higher learning• Extensive research infrastructure, including science parks, large universities, research institutes Geography & History * Demography * Economic Status * Doing Business in Sweden * Business Culture 21
  • 21. DOING BUSINESS IN SWEDEN
  • 22. Ease of Doing Business in Sweden Parameter Rank (2011) Ease of doing business 14 Starting a business 39 Dealing with construction permits 20 Registering property 15 Getting credit 72 Protecting investors 28 Paying taxes 39 Trading across borders 7 Enforcing contracts 52Geography & History * Demography * Economic Status * Doing Business in Sweden * 18 Closing a business Business Culture 23
  • 23. Ease of Doing Business in SwedenTo open a business in Sweden: 1. An entrepreneur has to be at least 18 years old. 2. not declared incapable 3. not under bankruptcy quarantine 4. No swedish partner (it depends!!) 5. Check whether license is needed * You pay less for social contributions and licensing if you started the business before 26 years old Geography & History * Demography * Economic Status * Doing Business in Sweden * Business Culture 24
  • 24. Business Entities Business Entities limited partnership branch of a foreign (kommanditbolag- company (filial) KB) limited Liability Company Others (aktiebolag-AB)Geography & History * Demography * Economic Status * Doing Business in Sweden * Business Culture 25
  • 25. Business EntitiesLimited Liability Company AB(aktiebolag-AB)• most common business structure Public Private used by foreigners.• registered at the Swedish Companies Stock No stock Registration Office (Bolagsverket) market market• Shares can have a different number 500,000 50,000 of votes depending on if they are A- SEK SEK or B-shares Geography & History * Demography * Economic Status * Doing Business in Sweden * Business Culture 26
  • 26. Business EntitiesLimited Liability Company (aktiebolag-AB)• A limited company must have at least one director and one deputy• Public companies must have at least three board directors and a managing director. A private company may appoint a managing director.• The board of directors is elected annually by the shareholders at the general meeting.• The board signs documents on behalf of the company.• The managing director has to be a resident of the EEA. Geography & History * Demography * Economic Status * Doing Business in Sweden * Business Culture 27
  • 27. Business EntitiesBranch (filial)• The manager has to be of legal age, not declared legally incompetent and a Swedish citizen• Branches are subject to specific legal provisions, unlike representative offices, and are subject to all aspects of Swedish law, including tax law. Geography & History * Demography * Economic Status * Doing Business in Sweden * Business Culture 28
  • 28. 29
  • 29. Business EntitiesPartnership (handelsbolag-HB)• at least two partners• The partners are not limited to natural persons• the partnership is a qualified legal entity• The partnership as such is not taxed. Instead, the partners are taxed, each in proportion to his share of income of the partnership Geography & History * Demography * Economic Status * Doing Business in Sweden * Business Culture 30
  • 30. Taxation Tax rates are among the highest in the world (up to 59.09%)Income tax rateCompany tax is based on net profit taxationOnly national tax is levied on companiesThe tax rate for limited companies is 26.3%VAT (mervärdeskatt)25% is the general tax rate applied on the sales value, 12% for hotels,transportation and food, 6% for newspapers. Geography & History * Demography * Economic Status * Doing Business in Sweden * Business Culture 31
  • 31. TaxationNet wealth tax• From 1st of January 2007 the wealth tax is abolishedReal estate tax• local fee• For commercial buildings there is still real estate tax between 0.2 % and 1.0 %Church taxes• for members of the Lutheran Church of Sweden Geography & History * Demography * Economic Status * Doing Business in Sweden * Business Culture 32
  • 32. Labor Law• Security of employment act prevents arbitrary dismissal.• Swedish law doesn’t mandate a minimum wage.• Board representation for employees.• Prohibition of discrimination based on sex, race or religion.• Promotion of equality.• Normal working hours are 40 hours per week and an overtime limit of 200 hours per year Geography & History * Demography * Economic Status * Doing Business in Sweden * Business Culture 33
  • 33. Labor Law• Statutory right to five weeks of annual holiday from the first year of employment, of which four consecutive weeks can be taken during the June-August period.• Dismissal procedure requires 3 steps: (1) dismissal notification is directed to the trade union, (2) within a month, the employee is informed, (3) termination occur one to six months according to the employees’ age and number of affected workers Geography & History * Demography * Economic Status * Doing Business in Sweden * Business Culture 34
  • 34. BUSINESS CULTURE
  • 35. 36
  • 36. Business Environment• Low level of hierarchy allows a first- name basis for everyone.• work attire is often conservative, but casual.• Employees and many employers, often focus on doing exactly what’s needed and doing it well, rather than doing unnecessary things (Lagom).• The managing director of a firm is more openly available to his or her employees.• strong union presence in Sweden. Geography & History * Demography * Economic Status * Doing Business in Sweden * Business Culture 37
  • 37. Business Environment• The Swedes are monochromic people and expect everything to be planned ahead and on time.• Easing the way into a company or into relations with a company takes time.• Swedes are not so receptive to new thoughts/plans if they feel that they are being forced upon them.• Swedish culture and work ethic means full respect between colleagues or business associates and they are completely intolerant to disrespect .• they avoid embellishing their accomplishments. Geography & History * Demography * Economic Status * Doing Business in Sweden * Business Culture 38
  • 38. Thanks for your Attention 39
  • 39. Thanks for your Attention…..