Although thousands of companies are registered in Sweden each year, the number of companies continues to grow slowly on the national level. In Skåne, new company registrations were up 7%.
Although many new companies are being registered, the rate of increase is slow, largely because many close, file for bankruptcy or become inactive. Boo Gunnarson, Specialist in small and medium-sized enterprises, comments on the Swedish Companies Registration Office’s figures in a Visma press release:
“Four out of five jobs are created by Sweden’s small and medium-sized enterprises. An active startup culture serves as an engine which drives the local community. But the actual growth of startups is far from being as high as the statistics may imply for new companies registered.”
And bankruptcies alone cannot account for why companies disappear because only around 15 percent of those that disappeared over a five-year period (2011–2015) were closed due to bankruptcy.
“Companies go out of business most often due to poor profitability, the company being sold off or the owners simply calling it quits for age reasons or because they found employment elsewhere. The government, municipalities and other entities need to work together to encourage entrepreneurs to choose the small business path and thus create jobs,” Boo Gunnarson at Visma concludes.
Limited companies (Aktiebolag) remain the most popular legal form of business. Entrepreneurs throughout Sweden registered 9.2 percent more limited companies in 2016 than in 2015. And in Malmö, the number of new companies registered went from 2499 to 2686, an increase of 7.5 percent, according to Sydsvenskan’s 8till5. The number of new companies registered for all of Skåne reached 8634, which corresponds to a 6.9 percent year-on-year increase.
Starting a new business is always a challenge
“Gulliksson’s strength in Skåne is our regional presence with superb knowledge of and insight into both well-established companies and small startups. Our experienced lawyers command specialized expertise in a wide range of industries. This is a strength, given that many industries require specific industry knowledge in addition to strictly legal knowledge,” says Hans-Anders Odh, Partner at Gulliksson.
Gulliksson has much experience assisting knowledge-intensive companies in their early stages. Gulliksson can be a key partner for startups, not only from the start but also during growth phases and expansion. As a proud partner of Tillväxt Malmö, Gulliksson plays a key role in a network that jointly provides business advice.
Every new business poses great challenges for an entrepreneur, and even well-established companies end up in situations where they require legal advice to determine the right action to take at the right time. Time is a decisive factor for insolvency and financing.
“For example, a company experiencing financial difficulties can opt for restructuring to avoid bankruptcy, and we can assist with risk and cost estimates on an ongoing basis to avoid a crisis situation,” says Hans-Anders Odh.
All businesses are affected and influenced by a number of commercial law issues. With Gulliksson you will receive well-grounded and proactive advice within most areas of commercial law. You can engage us for specific questions or as general adviser.
