CSD-Registered Company
A CSD-registered company (Swedish: avstämningsbolag) is a limited company whose articles of association include a provision stating that the company’s shares must be registered in a central securities depository register. Companies that already have, or plan to have, a large number of shareholders often choose to become CSD-registered companies — for example, public limited companies.
Common reasons for becoming a CSD-registered company
If a company plans to go public, it is a requirement that the articles of association include a CSD clause and that the company is connected to a central securities depository. Some common reasons for becoming a CSD-registered company include:
- The company wants to simplify the process of raising capital.
- The company is preparing for an IPO – all listed companies must be CSD-registered.
- The company’s share register has become too complex to maintain manually.
Shares must be registered with a Central Securities Depository
A CSD-registered company must register its shares in a CSD register maintained by a central securities depository. The register contains detailed information about each shareholder. In addition to personal data, it may include information such as pledged shares, guardians, or other rights holders. The official share register (aktiebok) is ordered from the CSD. It does not include all personal details about a shareholder, but only the essential information – such as name, personal identity number, and details about the shares held (for example, the share class).
Euroclear Sweden AB
In Sweden, there is currently only one central securities depository – Euroclear Sweden AB. Thus, being a CSD-registered company in Sweden is equivalent to being affiliated to Euroclear. If a company is not CSD-registered, its board of directors is responsible for maintaining the share register. The board must ensure that the register is continuously updated, for example when shares change ownership, new shareholders are added, or a shareholder changes address. When a company chooses to affiliate its shares to Euroclear and become a CSD-registered company, Euroclear takes over responsibility for keeping the share register updated.
How to Become a CSD-Registered Company
Are you considering taking your company public? At the beginning of the process, you will need assistance from an issuing agent. At Nordic Issuing, we guide you from the very first step – all the way to completion. We ensure that your company’s share register is properly prepared to enable connection to Euroclear Sweden, and we handle all the practical steps required to register your company’s shares with Euroclear at the final stage of the process.
Contact us here, and we will help you take the next step in your company’s journey.