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When does a small Swedish company need a statutory auditor?

An auditor is required once the company exceeds more than one of three limits, more than 3 employees on average, a balance sheet total above SEK 1.5 million and net turnover above SEK 3 million, in each of the two most recent financial years.

What the rules say

  • The Companies Act: a private company may state in its articles that it will not have an auditor.
  • The Companies Act: the exemption does not apply where more than one limit is met in each of the two most recent financial years.
  • The Companies Registration Office: the change to the articles must be filed for registration.

The requirements line by line

The requirements line by line
QuestionRequirementSource
Main ruleA private company may opt out of an auditor unless it exceeds more than one of three limits in each of the two most recent financial years.SFS 2005:551, aktiebolagslagen
Limit, employeesThe average number of employees in each of the two most recent financial years exceeds 3.SFS 2005:551, aktiebolagslagen
Limit, balance sheet totalThe balance sheet total in each of the two most recent financial years exceeds SEK 1.5 million.SFS 2005:551, aktiebolagslagen
Limit, net turnoverNet turnover in each of the two most recent financial years exceeds SEK 3 million.SFS 2005:551, aktiebolagslagen
RegistrationThe opt-out must appear in the articles of association and be filed with the Companies Registration Office.Bolagsverket, starta aktiebolag

Thresholds and limits

Thresholds and limits
LimitWhat it triggersSource
More than 3 employees on averageOne of three limitsSFS 2005:551, aktiebolagslagen
Balance sheet total above SEK 1.5 millionOne of three limitsSFS 2005:551, aktiebolagslagen
Net turnover above SEK 3 millionOne of three limitsSFS 2005:551, aktiebolagslagen
More than one limit, two years runningAn auditor is requiredSFS 2005:551, aktiebolagslagen

What it means for the company

The limits are measured two years running, so growth reaches the audit duty a year later. Decide on an auditor before the annual meeting, not after the closing.

What it means for the individual

A single owner without employees is almost always below the limits, though banks and larger customers may still ask for audited accounts.

Source lines

Next step

Take the last two years and tick off each limit separately. Two of three exceeded in both years means an auditor is required.

All questions for small businesses

This page reports what the sources say, with the identifier and address of the publisher. It is not legal advice and does not decide an individual matter.

Next step

Three ways to put the register to work in your own practice.

Start with your task