It defines economic association as associations with an intention to make profit, and is often analogously applied to various types of associations that are not formally regulated. It is formed by a minimum number of three legal/natural persons (whose liability is limited to the capital invested in the association) and is represented by a board of directors.

Among other things, this laws identifies the steps to set up a non-profit as a legal person. Essential to this process are the agreement of cooperation between two persons (legal or natural) and the appointment of a board. Although there is no requirement to do so, non-profits can register with the authorities in order to conduct economic activities.

Introduced the legal basis for foundations. According to the law, there are four different kinds of foundations: (i) General Foundations; (ii) Fundraising foundations; (iii) Collective agreement foundations; (iv) pension or personnel foundations. They aim at the promotion of an objective on a long-term basis which can be met  by using the yield of the separated property to give cash donations to certain individuals or groups, or by becoming involved in business activity. The separated property has to keep the foundation for at least five/six years from its founding.  the liability of a foundation is limited to its assets.

This law regulates public and private LLCs. The article of association of an LLC must contain, among other things, the business objective and the share capital and must be public. Among shareholders, the most fundamental rule is the principle of equality of treatment, i.e., decisions and actions must be carried out in a manner that treats all the shareholders equally. Moreover, each shareholder is entitled to vote for all shares that he/she owns, unless otherwise prescribed in the articles of association. By this law, the main rule regarding decisions in matters other than elections is that they must be adopted by an absolute majority, while in the case of board members’ election the person with the most votes wins.

Among other things, this law enables foundations, non-profits and religious communities to receive favourable treatment if there work in pursue of public utility activities – i.e., promoting culture, environmental care, care of children, political activities, religious activities, healthcare, charitable work to those in need, education, scientific research, or other equivalent activities and to strengthen Swedish defence in connection with military or other authorities.

Income from sales in the case of non-profits with public benefit aims are exempted from taxation
Legal entities employing people with “reduced working ability” can benefit from grants from the Swedish Labour Market Agency aimed at covering a part of their salary costs. The size of the grant depends on the individuals’ estimated working capacity.
ESF plays a central role in Sweden