Expatriates in Sweden sure have to work hard to be one of the Swedes and starting a business is one of the challenges they may have to face. Competing with natives who have a grip on the Swedish way of life and are fluent in the language are sure to be in the lead when it comes to owning and running a business. They have contacts, and thus information about the legalities and the dangers of certain steps you might want to take when you start a business.
Sweden sure is notorious for high tax rates. Although the Swedish government has reduced tax rates and taken measures such as allowing leaves to youngsters who want to practice entrepreneurship. But tax rates nonetheless remain high in this welfare state. An expatriate who has a little knowledge about taxing formalities and is not well versed in the Swedish way of work may face sudden failure owing to these complications. As a No European Union citizen, you need to register with the tax agencies and go through a lot of formalities before you set up. Businesses may become difficult for outsiders in such scenarios.
Hire staff in Sweden but do it legally! For the laborer rights in Sweden make it compulsory for the employer to provide the laborers according to the law. Fortunately, if you are from the EU you can easily establish a business. But if an outsider you need a work permit and residence permit to stay and work in Sweden. Although it is not essential to register your business it secures the name of your business. Working your way through lawyers and contracts is not an easy task. And doing so in a foreign country, you are in for a hard day!
Lack of working Capital
Finding sufficient capital in Sweden may be a fantasy. Owing to high tax rates and tax paid health and education having sufficient capital and stored money is often not feasible for an aspiring businessman. Starting a business as a sole trader, you should expect tough times ahead and brace yourself for some time of non-profit business. In a trading partnership, you may not need so much capital but responsibility for all debts land on you and your partner. A common mistake made is financing your business at the cost of your household finances. Not being able to pay bills and afford basic needs leads to obvious failure in both cases. Getting a loan may sound a great idea. But again, for a foreigner no loans without sufficient security. Of course, it is a long-term procedure to be able to own enough you can mortgage against some loan.
Problem in leads generation
If you are planning a business in Sweden, leads generation holds immense importance. Generating lead can be tough for a new businessman and more so for an expatriate working in Sweden. Not knowing the language, not being able to assess the Swedish mindset counts. For the Swedish work on trimmed lines and venturing for new ideas may be a little unorthodox for some. Not all foreigners are popular with the natives. And building the trust and companionship it takes for a successful business Venture takes you through narrow alleys.