How to notify a Foreign Direct Investment (FDI)

Who must notify a Foreign Direct Investment (FDI)?

The investor is responsible for submitting the notification. If the notification is submitted by a legal representative, a power of attorney authorizing the representative to act on behalf of the investor must be included as one of the attachments to the notification.

The company that is the subject of the investment must inform the investor that the legislation applies to the business and, in particular, of the investor’s obligation to submit a notification.

How do you notify a foreign direct investment?

The notification may be submitted via the ISP e-service (information in Swedish) or by email to registrator@isp.se. The notification forms and instructions are available here. The forms are available in Swedish only.

If the investor fails to make notification of an investment despite an obligation to do so the ISP may compile data for notification.

How does the screening process work?

When a notification is received, the ISP first assesses whether it is complete. If the notification is not complete, additional information is requested. The ISP promptly notifies the investor or its representative if the notification lacks mandatory information.

The screening process consists of two phases—an initial assessment phase and an in-depth assessment phaseInvestments that do not proceed to an in-depth assessment are left without further action.

More information about the process is available here. 

The initial assessment – 25 working days

Once the notification is complete, the ISP has 25 working days to examine the investment and issue a decision. During this phase, the ISP assesses whether the investment concerns a foreign direct investments in protection-worthy activities that may have adverse impact on Sweden’s security or on public order or public security in Sweden . For this assessment, the ISP may request additional information from the investor beyond what is provided in the notification.

Upon completion of the initial assessment phase, the ISP initiates an in-depth assessment if it determines that the investment may adversely affect Sweden’s security or public order or public security in Sweden. Otherwise, the notification is left without further action.

The in-depth assessment – three months

Once the ISP has decided to initiate an in-depth assessment the authority has three months to carry out the assessment and decide whether to approve, with or without conditions, or to prohibit the investment. If there are special grounds, the investigation may be extended by a further three months, for a total period of no more than six months.

During the in-depth assessment the ISP poses additional and more detailed questions to the investor, as well as to the company that is the subject of the investment. Both parties must, at the ISP’s request, provide the information or documents required by the authority for its assessment.

In its assessment, the ISP is required to cooperate with the following government authorities: the Swedish Armed Forces, the Swedish Defence Materiel Administration, the Swedish National Board of Trade, the Swedish Civil Contingencies Agency, and the Swedish Security Service.

During the in-depth assessment, the ISP may also obtain information from other authorities, as well as municipalities and regions. (LÄNK)

Which decisions may the ISP make after completing a screening process?

Once the in-depth assessment is completed, the ISP decides either to approve the investment, with or without conditions, or to prohibit the investment. If there are no grounds to prohibit an investment that has been assessed, it must be approved.

A foreign direct investment in protection-worthy activities must be prohibited if this is necessary to prevent harmful impact on Sweden’s security or on public order or public security in Sweden.

Can a screening decision be appealed?

Decisions on prohibitions and conditional authorisation may be appealed to the Swedish Government.

Is there an English translation of the Screening of Foreign Direct Investments Act?

Screening of Foreign Direct Investments Act (2023:560)

Ordinance on Screening of Foreign Direct Investments (2023:624)