Using an umbrella company in Scandinavia is a proven way to simplify contractor management across Denmark, Sweden, Norway, and Finland. Without setting up a local entity, you can hire consultants compliantly and focus on delivering projects instead of navigating Nordic employment rules.
What Is an Umbrella Company in Scandinavia?
An umbrella company acts as the official employer for contractors on your behalf. This means the umbrella provider handles payroll, tax reporting, social security, and employment contracts, while the consultant performs the work for your client. In the Nordics, this model ensures full compliance with national employment regulations and tax authorities.
How It Works Across the Nordics
- Consultant signs a contract with the umbrella company
- We issue payslips and withhold correct local taxes
- We manage benefits such as holiday pay and pensions
- You retain day-to-day management of the consultant’s work
Benefits of Using an Umbrella Company in Scandinavia
- Compliant hiring without setting up a local branch
- Accurate and timely payroll across all four countries
- All statutory benefits and reporting handled professionally
- Faster onboarding and less risk for recruitment agencies
Who Should Use This Setup?
- Recruitment agencies placing international consultants
- Firms managing remote teams in Scandinavia
- Companies hiring for short-term or project-based roles
Why Choose Northern Partners?
We specialise in Nordic contractor compliance. With deep local expertise and streamlined processes, Northern Partners ensures that your contractors are employed legally, paid correctly, and fully covered under national regulations.
Get in touch to learn how an umbrella company in Scandinavia can support your international placements.
What is an Umbrella Company?
An Umbrella Company is a service provider that employs contractors on behalf of recruitment agencies or end clients. The Umbrella Company manages all payroll, taxes, pensions, and administrative compliance, enabling easy and compliant hiring of contractors across different countries.
Denmark is known for its strict employment regulations and high standards for tax reporting. At Northern Partners, we act as your local Umbrella Company in Denmark—formally employing your consultants and handling everything from SKAT registration and income tax to holiday allowance and labour market contributions (ATP). Our team ensures each contractor is fully integrated into the Danish system while relieving you of the administrative load.
Placing contractors in Sweden means dealing with a unique mix of statutory benefits, employer contributions, and regulatory expectations. As an Umbrella Company, Northern Partners becomes the legal employer on your behalf, ensuring all aspects—from pension contributions under SAF-LO or ITP to sick pay and insurance—are correctly managed. With us, your consultants receive compliant, Swedish-standard employment—without the hassle for your agency.
Norwegian contractor management often surprises foreign agencies with strict compliance requirements and monthly reporting duties. Northern Partners steps in as your Umbrella Company in Norway, taking over all employment administration: we handle employment agreements, tax deductions (skattekort), NAV enrolment, and required A-meldings. We help you operate confidently within Norway’s legal framework—while delivering a smooth employment experience for your consultants.
Contracting in Finland requires more than just local tax registration—it involves navigating complex systems like YEL for self-employed pensions, TyEL for earnings-based pensions, and national benefits through KELA. As your Umbrella Company in Finland, Northern Partners handles the full employment lifecycle for your consultants: we register income tax details, ensure all social contributions are paid, and manage day-to-day payroll. Whether your consultants work remotely or on-site, we act as the formal employer, ensuring smooth operations and strict local compliance.
