Foreign companies doing business in Sweden occasionally face disagreements with Swedish partners, suppliers, or customers.
These disputes may concern contracts, unpaid invoices, delivery terms, intellectual property, or joint ventures.
When they arise, understanding how to obtain legal help under Swedish law is essential.
This article outlines how foreign companies can engage a Swedish lawyer, what to expect from the process, and how Swedish commercial disputes are typically resolved.
1. When Swedish Law Applies
Swedish law usually governs a commercial dispute when:
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The contract explicitly states that it is subject to Swedish law,
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The performance or breach occurred in Sweden, or
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The parties agreed that disputes should be resolved in Swedish courts or arbitration.
Even if the connection to Sweden is indirect, a Swedish lawyer (advokat) can assess whether Swedish jurisdiction is appropriate and advise on strategy.
2. Role of the Swedish Advokat
In Sweden, only members of the Swedish Bar Association (Advokatsamfundet) may use the title advokat.
A Swedish advokat:
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Is professionally qualified and independent,
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Owes a strict duty of confidentiality to the client, and
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May represent companies before all Swedish courts and arbitral tribunals.
Foreign companies should ensure that their representative is a licensed advokat, as this provides professional accountability and adherence to Bar standards.
3. How to Engage Legal Representation
Most Swedish law firms handle international matters and accept clients based abroad.
You can contact a lawyer directly by email or through the Swedish Bar Association’s online directory, which lists all licensed advokater.
When contacting a lawyer, include:
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A short description of the dispute,
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Copies of the relevant agreements, and
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Information about your company and where it operates.
Initial consultations are usually held by video conference and conducted in English.
4. Power of Attorney and Representation
A Swedish advokat can represent your company entirely through a power of attorney (fullmakt), which can be signed electronically.
Once authorised, the lawyer can:
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File claims or defences in Swedish courts,
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Correspond with the opposing party,
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Attend hearings, and
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Negotiate settlements on your behalf.
Physical presence in Sweden is rarely required for company representatives.
5. Costs and Advance Payment
Swedish lawyers typically charge hourly fees and issue a written engagement letter outlining the expected scope of work.
For foreign companies, an advance payment (retainer) is usually requested before proceedings begin.
The amount is credited against future invoices and held in a separate client account.
The lawyer will also advise on court fees, arbitration costs, and potential recovery of legal expenses if your company prevails.
6. Dispute Resolution Options in Sweden
Commercial disputes in Sweden are commonly resolved through:
a. Civil litigation
Handled in Swedish general courts (District Court → Court of Appeal → Supreme Court).
Proceedings are generally written, predictable, and focused on documentary evidence.
b. Arbitration
Many international contracts specify arbitration under the SCC (Stockholm Chamber of Commerce) or other institutional rules.
Arbitration is confidential, efficient, and widely recognised for enforcement under the New York Convention.
A Swedish advokat can act as counsel in both formats.
7. Enforcement and Recognition Abroad
Judgments and arbitral awards from Sweden are enforceable in most EU and EEA states, and SCC awards are recognised worldwide.
Your advokat can coordinate enforcement through local counsel in the relevant jurisdiction if needed.
Summary
Foreign companies involved in Swedish commercial disputes should:
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Confirm whether Swedish law or jurisdiction applies,
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Engage a licensed advokat, and
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Provide key documents and authorisation for representation.
Sweden’s legal system offers efficient, transparent procedures, and English-speaking advokater can manage every stage — from initial correspondence to court or arbitration proceedings.
