1. DESCRIPTION OF THE TYPES OF ENTITIES AVAILABLE IN EACH JURISDICTION THROUGH WHICH TO CONDUCT BUSINESS AND MATTERS TO BE CONSIDERED WHEN CHOOSING A BUSINESS ENTITY TYPE -

The most common form of business association in Sweden is a limited liability company (Sw. Aktiebolag). However, there are different types of entities available for starting up a business. In the following the different types of entities among with the advantages and disadvantages associated with them will be described.

Limited Liability Company -

A limited liability company is a form of business enterprise in which the responsibility of the shareholders is normally limited to the capital invested in the company, i.e., the shareholders are not personally liable for the debts of the company. It is the overriding principle under Swedish law that the directors of the board and the managing director are legally responsible for the company and its business under the applicable laws. The share capital of a private limited liability company is optional but must be at least SEK 25 000 and the share capital of a public limited company must be at least SEK 500 000. One key advantage to a Swedish limited liability company compared to many other jurisdictions throughout Europe is that there is a possibility to have different share classes with different capital and voting powers (“A” and “B” shares)...