BUSINESS IMMIGRATION to SWEDEN

THE PROGRAM of setting up a company, obtaining a residence permit and citizenship

Why Sweden?

Modern, free and open society

Safe and positive environment

Affordable and high quality education and health care

Property rights protection and low corruption level

Independent court, effective law enforcement system

Innovative and competitive economy

Strong and reliable banking sector

Huge opportunities for business development

English is fluently used by most people

Business immigration: Who may be interested in?

Planning to move to another country, but keeping control over your business?

Selling out your business and starting a new project in a better social and economic environment?

Investing your capital to live comfortably on interest income?

OR

Is developing an international project important for people and capital movement freedom?

Planning for secure family future in a supportive environment?

Or just want to live and work in a modern society of equal opportunities?

THEN the program of BUSINESS IMMIGRATION to SWEDEN IS FOR YOU!

#7 out of 187 countries

#7 out of 144 countries

Sweden: fast facts

country by territory

in Western Europe

after France and Spain #3 million

people 9,7

80 83

Average life expectancy Political system -

constitutional

monarchy

parliamentary democracy

residents were born

abroad 14,8% in terms of

GDP per capita (nominal)

by Human Development

Index (inequality-adjusted)

#10 out of 144 countries

by Global

Competitiveness Index

#4 out of 175 countries

by Corruption Perceptions

Index

#2 out of 167 countries

by

Democracy Index

200 years

without war

Business in Sweden: Aktiebolag (AB) - limited liability company

The most common legal form of business organization is a limited liability company (Aktiebolag or AB), where shareholders are not personally liable for the obligations of the company One or more founders, who must meet certain requirements, can form a limited liability company:

Person residing in the European Economic Area territory (EEA) = EU + Iceland, Norway, Liechtenstein Swedish legal entity Legal entity established in the EEA with headquarters or major operations in the EEA

Swedish company Managing Director must be a resident of the EEA. In some cases, the Company Registrar may grant an exemption from this requirement If none of the company representatives is a resident in Sweden, Director / Board of Directors must appoint an authorized person resident in Sweden, as a contact person for communication with the authorities of Sweden, on behalf of the company

There are no restrictions on the number or citizenship of company shareholders Shareholders have the right to regulate their relations in accordance with private, non-public agreements or to a certain extent, in accordance with the Articles and / or Memorandum of Association All shares have equal rights, unless otherwise provided in the Articles. The Articles of the company can define different classes of shares, i.e. different rights to participate in the assets or profits of the company, multiple voting rights, etc.

Private companies must have a paid-up share capital of at least SEK 50,000 (around EUR 5,700)

Corporate Tax - 22%

Wide network of tax treaties - more than 80 countries

No withholding tax on interest and royalties

Low rate or exemption for withholding tax on dividends (EC Directive and tax treaties)

Capital gain tax exemption (qualifications)

Moving to Sweden: choose the location for the residence

Political, business and cultural center, the largest city of the country Capital city region is the most populated area in Sweden - around 2.1 million people, the population of Stockholm is about 870,000 Temperate maritime climate with mild winters and cool summers. Mild winters due to the strong influence of the Gulf Stream, and summer temperatures rarely exceed 25°C Convenient flights to the major European cities - about 1.5 -2.5 flight hours A regular ferry service with Finland and the Baltic States

Advanced and modern city, located in the heart of the Öresund - one of the most progressive regions estimated by OECD and the largest labor market in Scandinavia The third largest city in Sweden (~300,000 inhabitants), the administrative center of Skåne region, the southernmost and warmest of the major Swedish cities Öresund Bridge connects Malmö with Copenhagen, and the largest airport in Scandinavia - Copenhagen Kastrup. It takes 20/30 min. to get to Kastrup by train/car from the city center. Regular ferry service to Germany

Sweden is divided into 21 counties (sv: län - county, state), which includes 290 municipalities The personal income tax rate depends on the choice of municipality for residence

Capital City Region Stockholm

Southern Sweden, Skåne Malmö

Moving to Sweden: property acquisition

There are no restrictions in SWEDEN on property acquisition by foreign citizens or companies The fact of owning the real estate is not a basis for residence permit obtaining, but usually considered when extending the temporary residence permit or obtain the permanent residence permit The price range for housing is very wide – from the most expensive in the capital to the cheapest in the remote municipalities

Apartments and semi-detached houses are usually owned by house-hold cooperatives, i.e. not acquiring a specific apartment or semi-detached house, but the share in a house-hold cooperative with the right of residence in a particular apartment or semi-detached house After the purchase of a share in a house-hold cooperative, member pays a monthly residential rental payment, including utilities. However, the residential rental payment is lower if the house-hold cooperative has less financial liabilities (loans), well developed, etc. EXAMPLE: an apartment near the centre of Malmö, 3 rooms, 79 sq. m. = 975,000 kr. (~ 107 600 euro) Residential rental payment = 2160 kr. (240 euro) Mortgage 2.7%, down payment of 15%

Apartment / Semi-detached house Villa / Plot of land Villa or/and land are registered under the ownership to a physical or legal person The buyer pays the stamp duty of 1.5% (physical person) of the appraised value Since 2008 the housing tax has been abolished and replaced by a municipal duty which is 0.75% of the appraised value, the maximum fee = 7074 kr. EXAMPLE: Villa, 20 minutes from Malmö, 700 sq. m. plot, 4 rooms, 120 sq. m. = 1,495,000 kr. (~ 165 000 euro) Monthly utility = 2000 kr. (220 euro) Mortgage 2.7%, down payment of 15%

BUSINESS IMMIGRATION program: basic steps and individual options

Program steps Action / Results Implementation /

Duration Remark

Consultation, identification of the goals and objectives over the medium term

- optimal business ownership structure - operational management and control - program participants - spouse, children, relatives, partners

2-3 hours

Study visit to Sweden: Stockholm or Malmö

- exploring the city - sights, transport and infrastructure

2-3 days trip, setting-up

within 7 days OPTION

Limited liability company formation and registration

- holding structure formation (optional) - fiduciary shareholder services - appointing the Director – Swedish resident

2-3 weeks Processing the documents and application forms for work permit and temporary residence permit

- forms/documents for the applicant / owner - forms/documents for family members - obtaining for work permit and temporary residence permit for 1-2 years

1-2 months

Assistance with obtaining the Swedish personal ID number and Swedish ID card

- registration / mail address providing - filing the application

4-5 weeks OPTION

Assistance with the selection of accommodation for rent / purchase

- searching and selecting the object - assistance in working with the realtor

2-3 weeks OPTION

BUSINESS IMMIGRATION program: RESIDENCE PERMIT and CITIZENSHIP

RESIDENCE PERMIT / Permission to work and stay in Sweden

A work permit is needed to act as a company officer Work permit for a period exceeding 90 days is simultaneously a residence permit - temporary residence permit Temporary residence permit also gives the right to stay in the Schengen area during 90 days - for business and travel Application for an extension must be applied 1-2 months before the expiration of the temporary permit. As a rule, the first temporary permission is valid for a year and 2 years in case of subsequent renewal Temporary residence permit may not be exceed 4 years in total, after there will be a possibility to apply for a permanent residence permit

Swedish CITIZENSHIP

A request for citizenship can be applied after 5 years of continuous stay in Sweden The basic requirements for the application process are: having a permanent residence permit, maintaining a decent lifestyle and lack of serious offenses The benefits of Swedish citizenship among other things are: - living and working in other EU countries as well as in Switzerland, Liechtenstein, Norway and Iceland - no visa is required for entering to 173 countries

SHFM OVERSEAS Sweden Filial: BUSINESS IMMIGRATION to Sweden

Please contact us for more information about our services in Sweden:

Т: +46 40 668 81 77 E: sweden@shfm-advisors.com www.shfm-advisors.com

Working out with the individual program scenario Formation, registration of companies, funds in Sweden and in other jurisdictions,

effective assets structuring Tax planning for holding structures Swedish resident Managing Director services Paperwork needed to apply for a work / temporary residence permit Support with the application and documents follow up, communication with the

Immigration Office and the Consular Department of the Embassy of Sweden Development and implementation of adapting process after moving to Sweden Assistance with choosing and acquiring the residential and commercial property,

operating businesses, etc.