Central Baltic countries

Sweden ranks at 4^th most competitive economy in Europe and is often also considered at one of the highest-performing economies worldwide. Swedish business scenery is considered as international (with diverse language skills) and innovative. Sweden is seen as free-market environment with a highly developed education system. Sweden has some of the lowest corporate taxes in the EU.

• GDP per capita (Purchasing Power Parity): $524.75 billion note: data are in 2017 dollars (2020 est.)
• Industries - iron and steel, precision equipment (bearings, radio and telephone parts, armaments), wood pulp and paper products, processed foods, motor vehicles
• Exports: $240.08 billion note: data are in current year dollars (2020 est.)- 
• Export partners: Germany 10%, Norway 9%, United States 8%, Denmark 7%, Finland 6%, United Kingdom 5%, Netherlands 5%, China 5% (2019). cars and vehicle parts, packaged medicines, refined petroleum, broadcasting equipment, lumber (2019)
• Imports: $217.68 billion note: data are in current year dollars (2020 est.). cars and vehicle parts, crude petroleum, refined petroleum, broadcasting equipment, computers (2019)
• Import partners: Germany 18%, Netherlands 9%, Denmark 7%, Norway 7%, China 6%, Finland 5%, Belgium 5%, Poland 5% (2019)

Those foreign-based companies wishing to engage in business activities in Sweden should usually register a branch. Another option is to establish a Swedish limited liability company that operates the Swedish business. Different options will have different effects legally and in terms of tax implications.

For those holding the citizenship of the EU and EEA do not need a work or residence permit to work in Sweden. A company/operator needs to keep in mind that

• a non-EU and EEA citizen, the work and residence permits are required before entering Sweden.
• the salary and other employment conditions are at market levels and the relevant labor union in Sweden can share its opinion on the terms of employment.
• applications for these permits are made with the Swedish Migration Agency (In Swedish Migrationsverket) and the process can take up to 10 months.
• the complex labor laws might require local expertise.
• high individual tax rates and a high cost of living might make recruiting talent outside the region difficult.

More information: https://www.pwc.se/en/business-sweden/type-of-presence.html

https://www.wolterskluwer.com/en/expert-insights/doing-business-in-sweden

Sweden is well-known for its successful brands (such as H&M, Spotify) and clear concepts. The Swedes are keen on concepts, and they may even have concepts for weddings and funerals! This is why clear concepts need to be thought through before bringing business ideas to potential Swedish partners. However, it is not enough that you are well prepared (for example knowing your competitor in the market) and have a dynamic elevator speech prepared. You also need to inspire people with a concept that is wrapped into a great package and a catchy speech. The reality is that people do not really need your product unless you make them need it. Especially in the Stockholm area, business actors are used to a fast speed. So, in your pitching you must go straight to the point.

It is ok to set a meeting a month before. Usually, you should send an email before you call. This has changed of course a bit in recent years. Sometimes you cannot find the right number on the website. If you are not able to get the number through the company’s switchboard, do not call to the number inquiry and ask for it! In this case the person does not want to give their number. Usually email inquiries are not replied either without a conversation before. You should make an effort to make that conversation happen (e.g. through Linkedin). Usually, the staff members do not start their presentation with titles but with the responsibilities “I’m responsible for”. Swedes really delegate their work. So, you should aim to find the right person who is taking care that area of responsibility. This might not always be the CEO of the company.

The royal family enjoys good reputation in Sweden at the moment. In any case do not criticize the family as this right is only reserved to the Swedes. Swedish people are at the same time very friendly but also professional (by professionalism we mean that you should go straight to the point). Business negotiations may be described as a ping-pong game between the parties, in which both parties want to keep the ball on the table as long as possible in good terms. You cannot be too positive with the Swedes either and cannot greet them too much by saying “Hej!” “Hey!”. Compliments come from Swedes naturally but also because of that ping-pong game type of mentality. The approach is always positive “Oj, so fint!” “Oh, so nice!”. In addition to positivism, avoid using sarcasm. It is not taken well by the Swedes.

The positive atmosphere does not however mean that the potential business partners in Sweden actually wants to buy your product. You need to find it out yourself if something is wrong. A good way to ask this is a phrase “How to solve this?”. Usually, foreign people tend to leave the table by thinking that everything was ok with their solution and presentation as in reality this was an opposite case.

Swedes appreciate a partner, who is humble, friendly and willing to help and easy to communicate with (e.g. not a big personality). Never lose your temper. Always thank people, in the email in the beginning and in the end and send greetings “Happy holidays!”. Show the importance of the team (not ME always WE). As there are usually several people from the company in the meeting, it is important to acknowledge them all and their contributions. Always inquiry who other staff members from the company could join the meeting. Swedes enjoy a low profile but self-confidence. It is better to use English rather than “elementary Swedish” especially in the city (Stockholm) area. Sometimes in the countryside the use of Swedish language is appreciated.

A question to ask before the deal is rather “How do you want to proceed with this subject?”. This is a better way to proceed with the partnership than asking “Can I contact you in 2 months?” as the partner might respond “This is too soon” or in other way that does not take the partnership further. “Diskutera” culture (discussion culture) is very important in Sweden, but does not mean that the decision-making takes time. At first it might take a time to get everybody on the same page and the Swedes might experience what is called “ont I magen”, “stomach aches” but after that things and decision-making proceeds fast.