The activities of Swedish investment funds are regulated by two main laws: the general EU directives and regulations and the “AIFM Act”. These laws control the registration of collective investment companies in transferable securities (UCITS) and any Sweden investment funds.
Our specialists offer full support to foreign businessmen and firms when obtaining an investment fund license in a particular jurisdiction. We will take care of all issues related to paperwork, communication with regulatory authorities, selection of a legal address, etc. We also offer the creation of investment funds in other jurisdictions.
Sweden fund registration
To successfully launch an investment fund in Sweden and obtain a Swedish fund manager license, you must apply to the Swedish Financial Supervisory Authority (SFSA), which supervises funds and their managers and also develops additional rules and guidance. The use of intermediaries and support services for fund management is regulated by the Securities Markets Act (SMA) and additional SFSA rules implementing Directive 2014/65/EU (MiFID II).
Sweden investment regulations
Although funds themselves in this country generally do not require additional specialized licensing, the provision of certain administrative services, such as custodial services, is only possible with a fund manager license. If fund administration services include trading settlements, the entity must be licensed under the SMA.
The Swedish Foundation is not subject to authorization or licensing in itself. However, the fund manager must obtain a license from the SFSA. If the manager intends to manage a UCITS or AIF formed as a special purpose fund, the rules of the fund must be approved by the SFSA.
For entrepreneurs who intend to administer an investment fund in Sweden, it is important to remember that in order to obtain a fund manager license in Sweden, it is necessary to submit an application to the SFSA, which must indicate the manager’s program of operations. Depending on the type of fund, authorization requirements may vary.
Starting a fund in Sweden: requirements for obtaining an investment fund license
- Registering the investment management company as a Swedish limited liability company and having a board of directors of at least three members and a managing director.
- Passing the SFSA management assessment for members of the management body of the controlling company or a legal entity that has a stake in the management company.
- Fund management companies must act in the interests of unitholders, conduct their business honestly, fairly and professionally, maintain minimum equity capital and have adequate risk management and internal control systems.
To obtain a Swedish IF license, the applicant must meet certain requirements. The license can only be issued to limited liability companies. However, to create an investment fund, with the exception of special funds, approval of the SFSA fund rules is not required. Our lawyers will provide you with comprehensive consulting and practical support during this procedure. We also have options for ready-made businesses, in particular, we can offer an alternative investment fund for sale in the Czech Republic and much more.
AIF regulation in Sweden allows funds with assets below a certain threshold to be managed without the need for permission, provided the AIFM is registered on the SFSA register. The exception applies to AIFMs managing funds with assets not exceeding:
- 100 million EUR using leverage;
- EUR 500 million if portfolios consist of AIFs that have no leverage and no redemption rights for 5 years after the initial investment.
These managers are subject to SFSA oversight and registration and reporting requirements under the AIFMD.
Benefits of Sweden investment funds
Sweden is a world leader in innovation, with a skilled workforce and a stable economy. The country is a leader in the development of advanced technologies and the formation of new consumer trends. Sweden’s international business environment is open and business-friendly, which contributes to the development of the fund industry. For individual advice on establishing an investment fund in Sweden, please contact our specialists at the contacts listed on the website.
To successfully implement Sweden fund management and obtain a manager’s license in the European Economic Area (EEA), the entrepreneur must obtain permission in his home country. He/she can operate in Sweden either from his/her home country or from Sweden by opening a branch. If the manager is authorized in his/her country under the UCITS V Directive or the AIFMD, he/she can obtain a license in Sweden through the competent supervisory authority of his country without a separate approval from SFSA. However, separate SFSA approval is required to operate a UCITS or special purpose fund.
The foreign entrepreneur must ensure that it is possible to pay unitholders, redeem units, provide information and handle complaints through a local paying agent in Sweden. An EEA manager who wishes to register as a manager of a Swedish AIF does not require separate permission from the SFSA unless the fund is a special purpose fund. A fund manager outside the EEA can only provide services to Swedish investors if authorized by the SFSA under Swedish national regulations.
The acquisition of a majority stake in a Swedish fund (10% or more of capital or voting rights) requires prior approval from the SFSA. The application must be submitted in writing. Permission is also required to increase the stake to 20%, 30% or 50% of the capital or voting rights when purchasing a qualified UCITS shareholding in Sweden.
Sweden is one of the prestigious Scandinavian jurisdictions, characterized by high standards of doing business. It is a country with a developed economy, a skilled workforce and a high standard of living. This was largely achieved thanks to openness to foreign investment and the introduction of various innovations in trade, IT and infrastructure. Registering an investment fund (IF) in Stockholm or any other city in Sweden can provide access to numerous benefits of this jurisdiction.
So, among other things, Sweden fund setup provides access to the following benefits.
- Highly developed economy.
- Loyal legislation for foreigners.
- Developed banking system.
- Lack of exchange controls.
- Stable political and economic environment.
- High level of property rights protection.
- Favorable tax standards. Sweden investment fund taxation on income received is 26.3%.
- Modern infrastructure.
- Ease of doing business and high transparency.
- Access to qualified personnel.
Procedure for registering investment fund in Sweden
To register an investment fund in Sweden, you must go through the following steps:
- determine the types of activities of the future company;
- come up with a unique name for the company;
- collect information and documents about the founders, beneficiaries and managers of the company;
- find and register a legal address for the company;
- prepare and execute constituent and registration documents;
- pay registration fees and submit documents to the Swedish Companies Registration Office to enter information about the company in the Swedish Commercial Register;
- register to pay taxes and mandatory social contributions;
- open corporate bank accounts;
- obtain additional permits and licenses for regulated activities;
- appoint an auditor if required for the type of company;
- ensure compliance with reporting and risk management requirements;
- ensure compliance with corporate governance rules and business standards;
- set up an internal control and management system to ensure proper corporate governance.
Sweden fund administration provides many opportunities and favorable conditions for doing business in a stable and developed economy. Our specialists have been working in this field for many years, so they have managed to establish themselves as the best in their field. We also provide comprehensive legal assistance in establishing investment funds in SVG, in Portugal, Spain and other countries. We guarantee a fast and correct process of registering and opening an investment fund in Sweden, and will also help you expand your business to other global jurisdictions.