Using an Umbrella Company in Scandinavia
Hiring consultants across Denmark, Sweden, Norway and Finland can be administratively complex. Each country requires correct handling of tax, payroll, social security and labour rules. Using an umbrella company offers a compliant and efficient way to manage contractor engagement without establishing a local entity.What Is an Umbrella Company in Scandinavia?
An umbrella company becomes the legal employer of the consultant. It manages payroll, tax filings, social contributions and employment contracts while the consultant performs services for the client. This structure ensures full compliance with national employment rules in all Nordic countries.How It Works Across the Nordics
- The consultant signs an employment contract with the umbrella company
- Payroll is processed locally with correct tax withholding
- Holiday pay, pensions and insurance are handled as required
- The client or agency manages the day-to-day assignment
Benefits of Using an Umbrella Company in Scandinavia
- Compliant hiring without a local legal entity
- Accurate and timely payroll in all Nordic countries
- Mandatory benefits and reporting handled professionally
- Fast onboarding and reduced compliance risk
Who Uses Umbrella Company Services?
- Recruitment agencies placing international consultants
- Companies hiring remote or hybrid professionals
- Project-based businesses operating in the Nordics
Why Northern Partners?
Northern Partners specialises in Nordic contractor compliance. We ensure that consultants are employed legally, paid correctly and protected under local regulations. This helps agencies and businesses focus on delivery instead of paperwork. Contact Northern Partners to see how an umbrella model can support your Nordic projects.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.
Disclaimer
This page is for informational and marketing purposes only. For advice on your specific situation, we recommend contacting Northern Partners directly.
