How To Launch A Startup In Stockholm

With its colourful buildings and cobbled streets straight out of a fairytale, Stockholm undeniably has that postcard-perfect beauty. But if you look just a little deeper beyond its cosy coffee shops and tourist attractions, the city is actually one of Europe’s best-kept startup secrets.

In fact, it’s actually punching well above its weight in the startup scene. So much so, it’s coined the catchy nickname of the Unicorn Factory. Why? It’s produced more billion-dollar startups per capita than anywhere else outside of the USA’s Silicon Valley.

It’s no surprise then that more entrepreneurs are setting their sights on this Scandinavian gem.

 

Why Is Stockholm A Good Place For Startups?

 

There is a very long list of reasons as to why Stockholm could be the ideal place for your startup base. From quality of life to businesses with major ambition from the get-go, the city has a lot to offer.

Educated professionals: The city is home to some of the top universities like Stockholm School of Economics and KTH. And hundreds of highly-skilled, experienced graduates are coming out of them every year.

Limited language barrier: Most of the residents can speak fluent English especially in business settings. While this could usually pose some challenges in other European cities, you’ll have minimal issues in Stockholm.

Quality of life: This is a city renowned for its excellent standard of living from healthcare and public services to safety and general work-life balance. It’s a major drawcard for global top talent.

International ambition: Most startups in Sweden start with a global mindset and intend to scale internationally as quickly as possible.

 

Industries With High-Growth Potential

 

Stockholm is known for its tech scene, but that doesn’t mean that it’s the only industry that you’re limited to. In fact, there are quite a few other sectors taking off.

Gaming: The popular gaming company King was founded in Sweden, giving us household names like Candy Crush. Since then, it has created a lively gaming community.

Healthtech: Stockholm has a robust healthcare system with a strong focus on medical technology and digital health specifically.

Fintech: Klarna, a financial services company, put Sweden’s fintech industry on the map resulting in a sector that is now seeing some of the most innovative startups.

Clean energy: Sweden is a global leader in sustainability and startups focusing on environmentally-friendly practices are always welcomed.

 

Accelerator And Incubator Programmes

 

Stockholm has a host of accelerators and incubators for founders who can get exclusive access to networking events, support and even funding in some cases.

SUP46: The Start-Up People of Sweden is a co-working space where entrepreneurs can connect with investors.

Stockholm Innovation & Growth: STING helps early-stage startups with financing and coaching in addition to office space if required.

KTH Innovation: Part of the Royal Institute of Technology, this organisation assists both students and researchers with turning their ideas into concrete businesses.

Antler Stockholm: This organisation is a worldwide startup generator that chooses individual talent to come together as a team and build scalable companies.

 

Funding Opportunities For Startups

 

On the whole, Stockholm has an exceptionally well-rounded funding ecosystem. From early-stage support to major venture capital, here are some of the options for founders looking to secure financial resources.

Venture capital: Some of the notable firms include Creandum, EQT Ventures and Northzone.

Angel investors: There is a strong network of angel investors within Stockholm, especially for tech-focused startups and those that show high-growth potential.

Government grants and loans: Almi and Vinnova are agencies that offer funding for innovative business ideas as well as R&D.

 

 

Visa And Residency Requirements For Foreign Entrepreneurs

 

As an EU/EEA citizen, you can live and work freely in Sweden. If you are not an EU or EEA citizen and want to run a business in Stockholm, you’ll need to obtain a Swedish residence permit for self-employment.

To be eligible, you will need proven experience running a business and proof that you owe a minimum of 50% of the business. You will also need to show how the business will support you and your family and financial proof to sustain you for at least the first two years.

For applications, you can apply online at the Swedish Migration Agency and the approval process can take several months.

 

How To Start A Business In Stockholm

 

Ready to launch your startup in Stockholm? Here is a simplified step-by-step guide on how you can get your business up and running smoothly.

 

Choose A Legal Entity

 

There are three common options for business structures in Sweden.

Enskild firma: This is like a sole proprietorship.

Aktiebolag: A Limited Liability Company (LLC) which most startups tend to choose. It also requires SEK 25,000 as the minimum share capital to get started.

Handelsbolag: A partnership if you have more than one founder.

 

Register The Company

 

The next step is to register your business at the Swedish Companies Registration Office. This is where both your name and legal entity will be registered.

 

Apply For F-tax

 

This can be done through the Swedish Tax Agency so that you can invoice clients and pay your taxes.

 

Open A Business Bank Account

 

You can open up a corporate bank account at any local Swedish bank. To do this, you will need your business registration, tax ID and proof of residency. In most cases, this needs to be done in person and not online.

 

Should You Launch A Startup In Stockholm?

 

If your dream is to launch a bold and innovative business, Stockholm is the place to be. Sure, the winters are a little dark and the cost of living isn’t exactly cheap but what you get is pretty incredible. A supportive startup environment, access to top talent and a quality of life that you just can’t beat.

So if you’ve got the vision in mind and the drive to go for it and make it happen, Stockholm is ready for you.

Lycka till (good luck)!