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 an Employer of Record (EOR)?
An Employer of Record (EOR) is a third-party provider that becomes the legal employer of a worker on behalf of another company. The EOR handles employment contracts, payroll, tax compliance, and social contributions while you manage the day-to-day work. - Can I use an EOR to hire non-EU nationals in Denmark?
Yes. An EOR can manage the legal employment of non-EU nationals in Denmark and oversee work permit applications under schemes such as the Pay Limit Scheme or the Positive List. - What’s the difference between EOR and setting up a Danish entity?
With an EOR, you can hire talent in Denmark without creating a local company. The EOR takes on the legal responsibilities of employment. Setting up a Danish entity involves company registration, tax reporting, and HR management, which the EOR handles on your behalf. - Why use an Employer of Record in Denmark?
Using an EOR in Denmark lets you hire quickly and compliantly without opening a local entity. The EOR handles employment contracts, payroll, tax filings, and ensures compliance with Danish labor laws. - How quickly can we onboard a consultant in Denmark?
Most consultants can be onboarded within 5 to 10 business days, including employment contract setup, tax registration, and payroll activation. Timelines may vary depending on the candidate’s nationality and role, so we recommend contacting our EOR team to discuss your specific setup.
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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