Share capital

Anyone who starts a limited liability company needs to subscribe for shares in the company. The payment for the shares constitutes the company’s share capital and can either be in the form of money or in the form of property that the company can benefit from. The share capital is a security for the company’s owners as their personal payment responsibility usually only extends to the invested share capital.

According to the Companies Act, all limited companies must have a share capital. Private limited companies must have a share capital of at least SEK 25,000 and public companies must have a share capital of at least SEK 500,000. Previously, the limit for private companies was SEK 50,000, but since January 1, 2020, this has been lowered to SEK 25,000.

The share capital is not a cost, it is money that the company can use. It can, for example, be used to buy assets, but also to cover costs incurred by the company.