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Residency requirements changing after Brexit |  Grant Thornton

Residency requirements changing after Brexit | Grant Thornton

Brexit will affect how the Swedish Company Registry Office looks at residency requirements. If your company has officers based in the UK, for example company directors or a branch CEO, it is time to act before the end of the year. At least half of the board must be resident in the EEA. We find out what applies.

From January 1, 2021 Officials of companies and branches resident in Great Britain will be deemed to be resident outside the EEA area. These companies and branches may then have to apply for an exemption from the residency requirement or hold new elections for the board of directors. This is because the Swedish Company Registration Office requires that at least half of the members of the board of directors and at least half of the number of deputies of the board of directors be residents within the European Economic Area.

It is important to review company boards Where there are officers resident in the UK it is preferable to change the board of directors to meet the residency requirements Before the beginning of the year. In cases where you can't change the board, it's a good idea to apply for an exemption now because it's easier, says Linda Carlson, chartered accountant and IBC officer at Grant Thornton.

The same applies to them Branches Which has a CEO and Executive Vice President from Great Britain.

– The Swedish Company Registration Office has prepared a temporary notification of exemption for this, making it easier to apply before the end of the year. As we said, this notice is temporary and may not survive beyond the end of the year, so our call is to act on this now, says Patrick Anderson, responsible for corporate services at Grant Thornton.

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Do not forget A special service recipient must be appointed* If the Branch CEO or Executive Vice President is not registered (resident) within the European Economic Area (EEA). The recipient of the private service must be registered in Sweden. The private recipient has the right to obtain service on behalf of the company or association, i.e. to obtain a document and confirmation that you have done so, for example, from the local court or the Swedish Company Registry Office in connection with the liquidation order.

Contact your advisor or accountant today for assistance on this matter. You can also contact corporate services.

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