Swedish Commercial Law Glossary
This entry defines the Enskild Firma, detailing its unlimited liability, tax treatment, and key differences from other Swedish business forms like Aktiebolag and Handelsbolag.
An Enskild Firma is a Swedish sole proprietorship with no separate legal entity. The owner bears unlimited personal liability for all business debts, directly impacting personal assets. The business and the owner are legally one and the same.
FAQ
No. An Enskild Firma is not a separate legal entity from its owner. In the eyes of Swedish law, the owner and the business are one and the same.
The owner of an Enskild Firma has unlimited personal liability. This means personal assets, such as a home or savings, can be used to cover business debts and obligations.
Yes, an Enskild Firma can hire employees. The owner remains personally responsible for all employer obligations under Swedish law and is liable for actions taken by employees within the scope of their work.
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