Many international consultants already have their own company – often a Ltd., GmbH, SARL, Inc. or similar – and naturally want to use it when taking on projects in Denmark, Sweden, Norway or Finland. A B2B setup often seems straightforward: your company enters into an agreement with Northern Partners, you invoice under that contract, and you receive payment directly.
However, most consultants do not need a B2B setup for short- to mid-term assignments.Opening and running a company can be unnecessary, expensive, and administratively heavy. This guide explains how B2B functions in practice, where it can make sense, and when an employed/EOR model is the safer and simpler option.
How B2B Works
With a B2B setup, you are not employed. Instead, your company – whether it’s a Ltd., GmbH, SARL, Inc., or a local Nordic entity – signs a contract with Northern Partners. You then invoice through your business and take on full responsibility for:
- Company registration and reporting in the relevant country
- Tax, VAT, and compliance with local business rules
- Social contributions, pension, and insurances (where applicable)
- Accounting, bookkeeping, and legal obligations
Having a company already does not automatically make the setup compliant. If your entity is registered abroad, you may still need additional registrations locally to meet Nordic requirements.
Advantages of B2B
- Independence and control – you decide how to run your business and choose your advisors.
- Cashflow flexibility – you can manage timing of income/dividends and expenses through your company.
- Potential optimisation for long-term roles – for permanent or long-duration assignments, a company may provide advantages if structured and registered correctly.
Challenges & Risks
- Administrative burden – you must handle registrations, taxes, reporting, insurance, and accounting.
- Compliance risk (misclassification) – if your work looks like employment (fixed hours, managed by client, equipment provided), authorities may reclassify the setup as employment.
- Cross-border complexity – having a company abroad (e.g. a UK Ltd. or German GmbH) does not automatically make you compliant locally.
- Costs – accounting, insurance, and legal fees often exceed expectations, especially for shorter assignments.
When B2B Is Suitable
- You already run a company registered in the country of work and are comfortable with full administrative responsibilities and liabilities.
- You plan to stay long-term in one country and can register correctly for tax and social contributions (your company may obtain Permanent Establishment status).
- You have verified your B2B setup with a local tax advisor.
When It’s Not Recommended
- Short- or mid-term projects where B2B is unnecessary, complex, and costly compared to an employed/EOR setup.
- Assignments across borders, where multi-country tax and social security registrations complicate compliance.
- Situations with a high risk of reclassification as employment, exposing both you and the client to liabilities.
Conclusion
B2B can be the right choice if you already have a company, plan to stay in one country for a longer period, and are comfortable handling compliance yourself. For most international consultants on short- to mid-term assignments in the Nordics, an employed/EOR solution is usually the safer, simpler, and more cost-efficient choice.
Northern Partners helps consultants evaluate when B2B is realistic – and when an employed/EOR model better protects everyone involved. If in doubt, consult a local accountant or tax advisor.
FAQ – B2B in the Nordics
Can I use an existing company (Ltd., GmbH, SARL, Inc., etc.) in the Nordics?
Yes, but only if the company is registered correctly for tax and social contributions in the country where you work. Having an existing entity does not automatically make you compliant. In many cases, additional local registration is required.
Do I need to register a local company in Denmark, Sweden, Norway or Finland?
Not always. It depends on the length of your assignment, where you pay tax, and whether your foreign company meets local requirements. In many cases, additional registration is required.
What happens if authorities reclassify my B2B contract as employment?
You may face backdated taxes and social contributions. Agencies or end-clients can also be held liable, which is why many prefer an employed/EOR setup.
Is B2B cheaper than working through an EOR?
Not necessarily. While you avoid EOR service fees, you take on costs for accounting, legal services, insurance, and compliance. For short- or mid-term projects, B2B is often more expensive and complex.
Who should consider B2B in the Nordics?
Primarily consultants in long-term roles who already run a properly registered company and are comfortable with full responsibility for tax, compliance, and administration.
Disclaimer
This article is provided for general informational and marketing purposes only. It does not constitute legal, tax, or accounting advice, and should not be relied upon as such. Regulations in Denmark, Sweden, Norway and Finland are subject to change, and the correct setup depends on individual circumstances. We always recommend seeking professional advice from a qualified accountant, tax advisor, or legal expert before making any decisions.
