Hire Contractors Without a Local Entity
Hiring consultants or contractors in Denmark requires strict compliance with national labor laws, tax systems, and employee benefits. As your local Employer of Record (EOR) in Denmark, Northern Partners enables you to hire legally without setting up a Danish subsidiary—ensuring full compliance from day one.
Our EOR service is designed for recruitment agencies, global businesses, and project-based teams needing a fast, compliant way to engage talent in Denmark.
Why Use an Employer of Record in Denmark?
Denmark is known for its highly regulated employment landscape. Employers must handle everything from A-skat (income tax withholding) and ATP (labour market pension) to holiday pay, maternity leave, and local contract rules. Operating without full understanding can result in penalties or employee misclassification.
With Northern Partners as your EOR, we become the legal employer in Denmark. You retain day-to-day control over the contractor’s work, while we manage:
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Registration with Danish authorities
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Issuing of Danish employment contracts
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Monthly payroll and payslips in DKK
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A-skat and ATP payments
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Feriepenge (12.5% holiday pay) administration
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Coordination of pension and social contributions
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Onboarding and exit support
Key Benefits of Our EOR Denmark Service
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No local entity required: Hire contractors without registering a Danish company
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Faster time to hire: Deploy talent in Denmark within days
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Full legal compliance: Aligned with Danish Holiday Act and Labour Market rules
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Local expertise: We understand the nuances of Danish employment, so you don’t have to
How Our Danish EOR Process Works
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You select the consultant or candidate
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We issue a locally compliant employment contract
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We register the employee for tax and social contributions
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We process monthly payroll, including all deductions
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You manage the work; we manage the employment relationship
EOR vs Setting Up a Subsidiary in Denmark
Setting up a Danish legal entity can take weeks and requires financial reporting, local directors, and VAT registration. Using an EOR allows you to bypass that complexity—ideal for:
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Project-based hires
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Market testing
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Short-term or trial engagements
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Agencies placing contractors with end-clients in Denmark
Can I Use an EOR to Hire Non-EU Nationals in Denmark?
Yes. As your legal employer, we manage the work permit process and ensure compliance with Danish immigration law. Common schemes include:
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The Pay Limit Scheme (salary-based)
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The Positive List (skills shortage occupations)
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The Fast Track Scheme (certified employers)
We ensure proper documentation, registration, and permit submission based on the candidate’s nationality and role.
Frequently Asked Questions (FAQ)
- What is A-skat in Denmark? A-skat is the employee income tax that must be withheld by the employer each month and reported to SKAT (the Danish Tax Authority).
- Is holiday pay mandatory? Yes. In most cases, 12.5% of the salary is paid as Feriepenge (holiday pay), managed by the employer.
- Can I keep control over the consultant’s tasks? Yes. You direct the work and performance. We handle the legal employment setup.
- How quickly can we onboard a consultant in Denmark? Typically within 5–10 business days, including registration and contract signing.
Summary
With Northern Partners as your Employer of Record in Denmark, you can hire consultants compliantly, quickly, and without legal exposure. We manage the complexity—so you can focus on delivery.
Contact our EOR Denmark team today to discuss how we can support your next hire.
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