Close company (fåmansbolag)

A close company (fåmansbolag, or fåmansföretag) is a limited company (aktiebolag, AB) in which four or fewer people own shares representing more than half of the votes. Related persons count as one person, so the vast majority of owner-managed small companies are close companies.

The concept affects how the owners are taxed. Shareholders who are active in the company to a significant extent are covered by the 3:12 rules, which determine how dividends and capital gains are split between the capital and employment income categories. The rules exist to prevent earned income from being converted into capital income, which is taxed at a lower rate.

Shareholders with qualifying shares submit the K10 form with their income tax return, where the threshold amount (gränsbelopp) is calculated. The K10 form is included in our Complete package.