Frequently Asked Questions & Answers

An EOR arrangement normally involves two separate agreements: a service agreement between the client company and the EOR provider, and a local employment agreement between the EOR provider and the employee.

The EOR becomes the legal employer and manages the formal employment, including payroll, tax withholding, employer contributions, benefits, insurance and agreed compliance obligations. The client company continues to manage the employee’s day-to-day work, responsibilities, goals and performance.

An EOR enables a company to hire employees in another country without first establishing its own local legal entity. The EOR provider becomes the employee’s legal employer and takes responsibility for the formal employment, including the employment agreement, payroll administration, tax withholding, employer contributions, benefits, insurance and agreed compliance obligations. The client company continues to manage the employee’s day-to-day work and remains responsible for tasks, goals and performance.

A PEO instead supports companies that already have a local legal entity or are correctly registered as an employer in the country. The client company remains the employee’s legal employer and retains ultimate employer responsibility, while the PEO provider acts as an external HR and payroll function. The service may include payroll administration, tax reporting, pensions, insurance, employee benefits, onboarding and ongoing HR administration.

The key difference is therefore who acts as the legal employer. With an EOR, the EOR provider is the legal employer. With a PEO, the client company remains the legal employer. An EOR is generally suitable for companies that want to begin hiring without their own local legal entity, while a PEO is suitable for companies that already have a local employing entity but need support with HR, payroll and local administration.

PEO and EOR services share several similarities, which is why they are often confused. The key shared characteristics include:

• Both PEOs and EORs provide HR services to other companies
• Both specialise in ensuring compliance with payroll, employment and tax regulations
• The services offered by both include payroll processing, HR administration, benefits management, onboarding, and administration of payroll and tax reporting
• The main driver behind using a PEO or EOR is to free up internal resources to focus on core operations and avoid compliance issues due to a lack of knowledge of local employment laws
• In both models, the client company remains the “managing employer”, meaning the organisation retains exclusive decision-making authority over compensation, projects and workload, and more

An Employer of Record (EOR) is a provider that becomes the legal employer of personnel working for a client company. The client company manages the employees’ day-to-day work, responsibilities, goals and performance, while the EOR manages the formal employment and agreed employer obligations.

The service enables companies to employ personnel in another country without first establishing their own local legal entity. The EOR provider employs the personnel through its local legal entity and manages employment agreements, payroll, tax withholding, employer contributions, benefits, insurance and agreed compliance obligations.

Using an EOR does not automatically eliminate every legal or tax risk. The client company’s activities and the employee’s role may still create obligations for the client company, including a potential permanent establishment risk, which should be assessed separately.

Services may include:

• Employee benefits administration
• Payroll administration
• Tax withholding and employer reporting
• Preparation and administration of local employment agreements
• General employment administration
• Acting as the legal employer
• Support and coordination relating to visas and work permits
• Communication and coordination with relevant authorities
• Guidance and administrative support regarding notice periods, terminations, severance pay and other employment-related matters

Assess your company’s needs and the services required for international recruitment. Create a shortlist of potential EOR providers and refine it by evaluating the pros and cons of each option.

Verify that the EOR has a permanent establishment in Sweden, such as BTR, rather than outsourcing its EOR services to a third party. Relying on a partner-dependent EOR can entail risks, such as limited control over costs and security. Since the EOR handles everything from onboarding to payroll on your company’s behalf, make sure they provide a positive experience for your employees. For example, do they respond quickly to enquiries and offer support when needed? Do they ensure salaries are paid on time? Is their onboarding process engaging and thorough?

Confirm that your EOR offers a competitive and fair compensation and benefits package to help attract and retain top talent. Work with the EOR to develop a benefits package that reflects the employee’s role, skills, experience and local employment regulations. Also ensure that the EOR prioritises security and compliance to protect your intellectual property and company data

The cost of using an EOR can vary depending on factors such as the services required, the location of your employees, and the number of people you plan to hire. Typically, prices range from USD 599 to sometimes over USD 2,000 per employee per month.

If you find EOR providers offering lower prices, make sure they offer the same level of security and compliance as more established providers.

When it comes to pricing, it is best to choose an EOR that offers a clear and fixed price for a comprehensive service package, including onboarding, benefits, taxes, payroll, compliance, and data protection.

Sweden has several labour laws that employers must follow, as well as specific guidelines for termination, employment contracts, compensation and other aspects of employment and personnel management. Below you will find more information on these topics.
When you hire employees in Sweden, it is important to take into account both collective agreements and Swedish labour laws. Each industry has its own collective agreements that regulate terms and conditions of employment, so it is important to identify which agreements apply to your employees during recruitment. Some industries have more complex agreements than others, and labour laws are updated frequently.

Employment contracts in Sweden typically cover details about leave, pay and benefits. Employers must provide employees with written information about the essential terms of employment within the applicable statutory deadlines. The information should cover matters such as the employee’s duties, salary, working hours, place of work, holiday entitlement and notice periods.

Employment contracts are generally considered permanent unless a valid fixed-term arrangement has been agreed. Different rules apply to different forms of fixed-term employment. For example, special fixed-term employment normally converts into permanent employment after the employee has accumulated more than 12 months of such employment during the applicable period. Collective agreements may contain different rules.

An employment agreement can be concluded orally, but a written agreement is strongly recommended. It helps both the employer and employee understand the agreed terms and reduces the risk of future misunderstandings.

Swedish labor laws provide protection and benefits for employees and include the following key laws:

• The Employment Protection Act
• The Work Environment Act
• The Employment (Co-Determination in the Workplace) Act
• The Annual Leave Act
• The Parental Leave Act
• The Discrimination Act
• The Working Hours Act

Under the Swedish Working Hours Act, ordinary working hours may normally amount to no more than 40 hours per week. General overtime may normally amount to no more than 48 hours over a four-week period or 50 hours in a calendar month, subject to a maximum of 200 hours per calendar year. Total working time may normally average no more than 48 hours per week over a reference period of no more than four months.

As a general rule, employees are entitled to at least 11 consecutive hours of daily rest during each 24-hour period. Breaks must be scheduled so that employees do not work for more than five consecutive hours, but the law does not require every break to be exactly 30 minutes. Collective agreements and specific regulations may affect how these rules apply, and separate rules apply to certain groups, including minors and night workers.

Sweden offers generous benefits for sick leave and parental leave. If an employee falls ill, they are entitled to sick pay from the employer during the first 14 days. After that, the Swedish Social Insurance Agency (Försäkringskassan) provides sickness benefit. Parental leave in Sweden is one of the most generous in the world, with parents entitled to up to 480 days of paid leave, which can be shared between both parents.

Hiring employees in Sweden involves several costs in addition to salaries. Employers must pay social security contributions, which include pension contributions and health insurance, totalling approximately 31.42% of gross salary. Holiday pay is usually around 12% of the annual gross salary, and there may also be additional costs for employee benefits, such as wellness allowances and other health-related benefits.

Non-EU citizens who want to work in Sweden must obtain a work permit. The application process involves several steps, such as the employer having to advertise the position within the EU/EEA for at least ten days before a work permit application can be submitted. Work permits are usually issued for up to two years and can be extended.

An employer must have a valid and legitimate reason to dismiss an employee, such as redundancy, performance or productivity issues, or workplace misconduct. Generally, the employer must give notice depending on the employee’s length of service with the company. Notice periods can vary from 14 days to six months.

Swedish employment law does not require severance pay or compensation, but such payments may be required under individual contracts, specific agreements, or collective bargaining agreements.

An Employer of Record (EOR) in Sweden is a third-party organisation that takes on the role of the legal employer for your workforce in the country. The EOR handles employer-related tasks such as onboarding, payroll and benefits, ensures compliance with local laws and regulations, and enables you to focus on managing day-to-day operations.

The best Employer of Record provider is one that can offer a secure, transparent and locally adapted solution based on the company’s needs and the countries where its employees will be hired.

When comparing EOR providers, companies should consider:

• Whether the provider employs personnel through its own local legal entity or relies on external partners
• The provider’s local expertise in employment law, payroll, tax and HR administration
• What is included in the service and how the pricing is structured
• How quickly employees can receive support and who their local point of contact will be
• How payroll, pensions, insurance and employee benefits are managed
• How personal data, company information and intellectual property are protected
• Whether the provider can support the company as its team grows or when it establishes its own legal entity

A direct EOR provider employs personnel through its own local legal entity instead of delivering the service through an external partner. This can provide a clearer allocation of responsibilities, fewer points of contact and greater control over employment, payroll administration and employee support.

BTR Group has its own legal entities in Sweden, Denmark and Finland and can therefore provide direct EOR services in all three markets. The most suitable provider should always be selected based on the company’s hiring needs, timeline, support requirements and long-term establishment plans.

The primary role of an EOR is to act as the legal employer for a company’s global workforce. As the official employer, the EOR assumes responsibility for all compliance-related matters, including HR compliance, payroll and tax obligations.

Yes. A foreign company can employ someone in Sweden without forming a Swedish subsidiary, for example by using an Employer of Record (EOR).

The EOR provider becomes the person’s legal employer in Sweden and is responsible for the local employment contract, salary payments, tax withholdings, employer social security contributions, insurances, benefits and reporting to Swedish authorities. The foreign company still manages the day-to-day work and is responsible for tasks, goals and performance.

Another option may be for the foreign company to register as a foreign employer in Sweden. Which solution is best depends, among other things, on the scope of the business, the number of employees and the company’s long-term plans. It is also important to assess any tax issues, including the risk of a permanent establishment.

BTR Group is a direct EOR provider with its own legal entity in Sweden and can help international companies employ and pay staff in Sweden without first setting up a Swedish company.

A foreign company that does not have Swedish payroll management can either register as an employer in Sweden and engage a local payroll provider, or use an Employer of Record (EOR).

If the company registers as a foreign employer, it retains the legal employer responsibility itself. The company must then ensure that tax deductions, employer social security contributions, payslips, insurances and reporting to Swedish authorities are handled correctly.

With an EOR solution, the EOR provider instead becomes the legal employer in Sweden. The EOR provider pays the salary, makes tax deductions, pays employer social security contributions, administers benefits and insurances, and reports to the relevant authorities. The client company normally receives a consolidated monthly invoice covering salary, employer costs, benefits and the EOR fee.

BTR Group can help you assess which option is best suited and then manage Swedish payroll, HR administration and compliance.

If you have found a candidate in Sweden, Denmark or Finland but lack a local legal entity, there are usually three main options:

1. Use an Employer of Record: A local EOR provider legally employs the candidate and handles the employment contract, payroll, tax, benefits, insurance and statutory reporting. You still manage the person’s day-to-day work.
2. Register the foreign company as an employer: In some situations, the company can hire directly through local employer registration. You then retain full employer responsibility and need to manage the country’s payroll, tax and employment law requirements.
3. Establish your own legal entity: A subsidiary or branch may be suitable if you are planning a larger and more long-term operation with several employees in the country.

Which option is best depends on how quickly the hire needs to be made, how many people you intend to hire, how long you plan to operate in the market and how much administrative responsibility you want to take on.

BTR Group can help you compare the options and offers EOR, company formation, payroll management and accounting in Sweden, Denmark and Finland.

Yes. A foreign company can employ a remote worker in Sweden, Denmark or Finland, but the employment must comply with the rules in the country where the person actually works.

When an employee works permanently from a Nordic country, the company may have local obligations relating to, among other things, employer registration, payroll administration, tax withholding, social security, pensions, insurance and employment law. Remote work can also entail tax risks for the company, for example the risk of creating a permanent establishment. This needs to be assessed separately based on the employee’s role and authority.

The company can either register as a foreign employer, establish a local legal entity or use an Employer of Record. With an EOR solution, the EOR provider becomes the local legal employer and handles employment contracts, payroll, tax, benefits and reporting to authorities. The client company still manages the employee’s day-to-day work.

BTR Group can help you employ remote workers in Sweden, Denmark and Finland through our own local legal entities.

No. A company does not always need to set up a local company to hire someone in Sweden, Denmark or Finland. An Employer of Record can be a more practical alternative when the company wants to hire one person or a small number of employees.

The EOR provider becomes the person’s legal employer and is responsible for the local employment contract, payroll payments, taxes, employer contributions, insurance, benefits and statutory reporting. The client company still determines the employee’s role, duties, goals and day-to-day work.

Setting up your own company may be more suitable when the company is planning a larger and long-term operation, will hire several people, or needs a local legal entity for sales, contracts or other business activities.

The best option therefore depends on the company’s timeline, number of employees, operations and long-term establishment plans. BTR Group can help you compare EOR with employer registration, a branch or a subsidiary in each Nordic country.

Yes. An Employer of Record can be used as a temporary solution while a company establishes its own legal entity in Sweden, Denmark or Finland.

The EOR provider employs the employees locally and manages employment contracts, payroll, taxes, employer social security contributions, benefits, insurance and statutory reporting. This enables the company to start building its team without having to wait until company registration, a bank account, employer registration and local payroll administration are in place.

Once the company’s own legal entity is operational, the employees can be transferred from the EOR provider to the new company. The transition needs to be planned carefully so that terms of employment, length of service, holiday entitlement, benefits and other rights are handled correctly in accordance with local legislation.

BTR Group can support the entire process – from the initial EOR employment to company establishment, local payroll administration, accounting and the transfer of employees to the new legal entity.

Yes. You can recruit and select the candidate yourselves and then use an Employer of Record to carry out the local employment.

The EOR provider does not need to be responsible for recruitment. Once you have selected a candidate, you provide the necessary information about the role, salary, start date, benefits and employment terms. The EOR provider then prepares a local employment contract and manages onboarding, payroll payments, taxes, employer contributions, insurance, benefits and statutory reporting.

You remain responsible for the candidate’s duties, day-to-day management, goals and performance. The EOR provider is responsible for the formal employer obligations and helps ensure that the employment complies with local regulations.

BTR Group can employ candidates you have already found in Sweden, Denmark and Finland. If you also need help with recruitment, we can coordinate that as a separate part of the solution.

An EOR hire can often be carried out significantly faster than establishing your own legal entity. When all information and documentation is available, the onboarding process can in many cases be completed within a few days to a couple of weeks.

The timeline is influenced, among other things, by:

• Which country the person will be employed in
• Whether the candidate already has the right to work in the country
• The terms and complexity of the employment
• Whether a collective agreement needs to be taken into account
• Which benefits and insurances are to be included
• How quickly the parties approve the employment contract
• Whether background checks or other checks are required

If the candidate needs a work or residence permit, the process usually takes longer, as the person normally cannot start working until the necessary permits are in place.

BTR Group has its own legal entities in Sweden, Denmark and Finland. This means we can handle the employment directly locally without first having to engage an external EOR partner.

An Employer of Record is usually best suited when you want to hire quickly, test the Swedish market, or start with a smaller number of employees. Setting up your own Swedish company is often more appropriate when you are planning a larger and long-term operation.

With an EOR, you do not need to establish your own legal entity before employment can begin. The EOR provider becomes the legal employer and handles employment contracts, payroll, tax, employer contributions, insurance, benefits and statutory reporting. You still manage the employee’s day-to-day work.

Having your own company gives you greater control over the local operation and can be more cost-effective as the number of employees grows. At the same time, it requires company registration, payroll administration, accounting, tax returns and ongoing compliance.

The choice should be based on the number of planned hires, timeframe, business activity and set-up costs. BTR Group can help you compare the options and support both EOR hiring and Swedish company establishment.

A company should consider moving from an EOR to its own legal entity when its operations in the country become larger, more permanent, or require a local commercial presence.

This may be relevant when:

• The number of local employees increases
• The company plans to remain in the market long term
• The total EOR cost starts to exceed the cost of having its own company
• The company needs to enter into local customer or supplier agreements
• The business needs a local bank account or local invoicing
• The company wants full legal employer responsibility
• Tax or operational considerations justify a local establishment

There is no universal threshold for how many employees make having your own company more advantageous. The assessment needs to take into account costs, administration, tax risks, and the company's expansion plan.

BTR Group can help you evaluate the right timing, establish the new legal entity, and plan a proper transition of employees from the EOR solution.

Yes. An EOR can be used both to hire a single employee and to build a larger local team.

For a single hire, an EOR is often a practical option because the company avoids having to set up a legal entity and build local payroll, HR and accounting administration. This may be relevant, for example, when the company has found a specialist or remote worker in Sweden, Denmark or Finland.

An EOR can also be used for a larger team, especially during a market launch or while the company’s own legal entity is being established. As the team grows, the company should regularly compare the EOR cost with the cost and benefits of having its own entity.

A larger number of employees can also lead to more questions about the working environment, collective bargaining agreements, management structure and the risk of a permanent establishment. These issues need to be assessed separately.

BTR Group can help you choose a solution that suits the size of your team and adapt the setup as the business develops.

How long an EOR solution can be used depends on the country, the type of employment, how the work is organised and the company’s long-term plans. There is therefore no general time limit that applies to all EOR arrangements in Sweden, Denmark and Finland.

Some companies use an EOR for a limited period while they test a new market or set up their own company. Others use the solution for a longer time for a smaller number of employees.

The EOR arrangement needs to be reviewed regularly. Depending on how the relationship is structured, rules on, among other things, the hiring-out of workers, employment protection, collective agreements and equal treatment may become relevant. The company’s activities and the employee’s authority may also affect the assessment of permanent establishment.

BTR Group assesses each arrangement based on the country in question and the employment. If setting up your own company later becomes a better option, we can help with both the establishment and the transfer of the employees.

The difference mainly concerns who the legal employer is and how much local responsibility the foreign company takes on.

Employer of Record: The EOR provider becomes the legal employer and handles local employment contracts, payroll, taxes, employer contributions, insurance, benefits and reporting. The client company manages the day-to-day work but does not need its own local legal entity.

Registration as a foreign employer: The foreign company employs the person directly and retains full employer responsibility. The company needs to register with the relevant authorities and ensure that local payroll, tax, social insurance and employment law are handled correctly.

Own local company: The company sets up, for example, a subsidiary that employs the staff. This provides greater local control but also entails responsibility for corporate administration, accounting, tax, payroll and compliance.

BTR Group can help you compare the options based on timeline, cost, number of employees and long-term business objectives.

Yes, a foreign company can hire staff in Denmark without first establishing a Danish company. A common option is to use an Employer of Record (EOR), which becomes the employee’s legal employer in Denmark.

The EOR provider handles, among other things, a locally adapted employment contract, payroll administration, taxes, holiday pay, pensions, insurance and reporting to the Danish authorities. At the same time, the client company manages the employee’s day-to-day work and is responsible for tasks, goals and performance.

In some cases, a foreign company can also hire directly and register for the relevant Danish employer and payroll requirements. However, this means the company itself retains employer responsibility and needs to manage local administration and compliance.

Which solution is best depends on the number of employees, their roles and the company’s long-term plans in Denmark.

An Employer of Record in Denmark employs the employee through its local Danish legal entity and becomes the formal employer. The international client company therefore does not need to establish its own Danish company in order to start hiring.

The EOR provider is normally responsible for employment contracts, onboarding, payroll administration, tax withholdings, employer-related reporting, holiday, pensions, insurance and other local employment requirements.

The client company is responsible for operational management. This means that the company determines the employee's tasks, goals, projects and daily priorities, while the EOR provider handles the formal employment.

An EOR solution may be suitable for companies that want to test the Danish market, recruit their first local employees or start building an organisation before establishing their own Danish company.

An Employer of Record in Denmark handles the formal and administrative obligations that come with being the local employer. This makes it possible for a foreign company to focus on the employee’s work and the development of the business.

A Danish EOR can, among other things, handle:

• Locally adapted employment contracts
• Onboarding and registration of the employee
• Monthly payroll administration and payslips
• Tax deductions and reporting via eIndkomst
• AM contributions and ATP where applicable
• Holiday and reporting of holiday pay
• Pensions, insurance and employee benefits
• Sick leave and other leave
• HR administration and support in personnel matters
• Administration when the employment ends

The exact services depend on the employment, any collective agreements and the agreement entered into with the EOR provider. The client company continues to manage the employee’s day-to-day work, while the EOR provider is responsible for local employment administration.

Yes, an Employer of Record in Denmark can help coordinate applications for work and residence permits for employees who need permission to work in the country.

Citizens of the EU, EEA and Switzerland normally do not need a traditional work permit, but may need to register their right of residence and complete other local registrations. Citizens from countries outside the EU and EEA usually need a valid work and residence permit before they may start working in Denmark.

The EOR provider can assist with a local employment contract, employer documentation and practical coordination during the application process. Which permit is relevant depends, among other things, on the employee’s citizenship, education, job role, salary and the length of the employment.

The permit is always issued by the responsible Danish authority and can therefore never be guaranteed by an EOR provider.

Yes, a foreign company can hire staff in Finland without first establishing a Finnish company. A common option is to use an Employer of Record (EOR), which becomes the employee’s legal employer in Finland.

The EOR provider handles, among other things, a locally compliant employment contract, payroll administration, tax withholdings, pensions, insurance, occupational health care and reporting to the Finnish authorities. At the same time, the client company manages the employee’s day-to-day work and is responsible for tasks, goals and performance.

In some cases, a foreign company can also hire directly in Finland. The company must then assess which registrations and employer obligations apply and handle local payroll and compliance itself.

Which solution is best depends on the number of employees, their roles and the company’s long-term plans in the Finnish market.

An Employer of Record in Finland employs the employee through its local Finnish legal entity and becomes the formal employer. The international client company therefore does not need to set up its own Finnish company in order to start hiring.

The EOR provider is normally responsible for employment contracts, onboarding, payroll administration, tax deductions, employer-related reporting, statutory insurances, pension and occupational health services. The EOR provider also ensures that the terms of employment comply with Finnish law and applicable collective agreements.

The client company is responsible for operational management. This means the company decides the employee’s duties, goals, projects and daily priorities, while the EOR provider handles the formal employment.

An EOR solution can suit companies that want to test the Finnish market, recruit their first local employees, or start building a team before establishing their own Finnish legal entity.

An Employer of Record in Finland handles the formal and administrative obligations that come with being the local employer. This makes it possible for a foreign company to focus on the employee’s work and the development of the business.

A Finnish EOR can, among other things, handle:

• Locally adapted employment contracts
• Onboarding and registration of the employee
• Monthly payroll administration and payslips
• Tax withholding and payment of employer contributions
• Reporting to the Finnish Incomes Register
• Statutory earnings-related pension insurance, for example TyEL
• Accident insurance and other applicable insurances
• Statutory preventive occupational health care
• Annual leave, sick leave and other leave
• HR administration and support when ending the employment

The exact services depend on the employment, the industry and any applicable collective agreement. The client company manages the employee’s day-to-day work, while the EOR provider is responsible for local employment administration.

Yes, a Finnish collective agreement may apply even when an employee is hired through an Employer of Record. In Finland, there are generally binding collective agreements that employers in a certain industry may be obliged to follow, even if they are not members of the employer organisation that has signed the agreement.

The collective agreement may regulate, for example:

• Minimum wages
• Working hours and overtime pay
• Holiday pay
• Sick pay
• Supplements for evening, night or weekend work
• Parental leave
• Notice periods
• Other industry-specific terms and conditions of employment

The EOR provider therefore needs to identify whether a collective agreement is applicable to the employee’s role and industry before the employment contract is drawn up.

If no collective agreement applies, the employment must still comply with Finnish labour law and offer reasonable terms and conditions of employment. The client company and the EOR provider should agree on salary and benefits based on both legal requirements, collective agreements and market practice.

The process begins with a review of the current employments, including employment contracts, payroll details, salaries, benefits, pensions, insurances, holiday balances and relevant tax information.

The EOR provider then draws up locally adapted employment contracts and plans the transition together with the client company and the employees. When the new employments take effect, the EOR provider becomes the legal employer and assumes responsibility for payroll administration, tax withholdings, employer contributions, benefits, insurances and statutory reporting.

The client company continues to manage the employees’ day-to-day work and remains responsible for their duties, goals and performance. The company normally receives a consolidated monthly invoice covering salaries, employer costs, benefits and the EOR fee.

The transition should be planned carefully to ensure continuity in employment terms, salary payments, accrued holiday and benefits. BTR Group can coordinate the process and help companies transfer employees to an EOR solution in Sweden, Denmark and Finland.

Yes, an Employer of Record in Finland can help coordinate applications for work and residence permits for employees who need a permit to work in the country.

Citizens of the EU, EEA and Switzerland normally do not need a traditional work permit, but may need to register their right of residence and complete other local registrations. Citizens from countries outside the EU and EEA usually need a valid work and residence permit before they are allowed to start working in Finland.

The EOR provider can assist with a local employment contract, information about the terms of employment, employer documentation and practical coordination during the application process. Which permit is relevant depends, among other things, on the employee’s citizenship, job role, education, salary and the length of employment.

The EOR provider must also check that the employee has the right to work in Finland. The permit is always issued by the Finnish immigration authority and therefore cannot be guaranteed by an EOR provider.

Services:

• Payroll administration
• Payroll-related tax calculations and reporting
• Employee benefits administration
• Pension and insurance administration
• HR administration
• Onboarding and offboarding support
• Employment documentation
• Holiday and absence administration
• Compliance support
• Support with personnel matters and employment processes
• Local guidance on employer requirements

The client company remains the legal employer and retains responsibility for employment decisions and the employees’ day-to-day management. The PEO provider manages the payroll, HR and employer administration services agreed with the client company.

PEO and EOR services share several similarities, which is why they are often confused. The key common characteristics include:

• Both PEOs and EORs provide HR services to other companies
• Both specialise in ensuring compliance with payroll, employment and tax regulations
• The services offered by both include payroll management, HR administration, benefits administration, onboarding, and administration of payroll and tax reporting
• The main driver behind using a PEO or EOR is to free up internal resources to focus on core operations and avoid compliance issues due to a lack of knowledge of local employment laws
• In both models, the client company remains the “managing employer”, meaning the organisation retains exclusive decision-making authority over compensation, projects and workload, among other things

A PEO solution (Professional Employer Organization) helps companies manage payroll administration, taxes and employer responsibilities in accordance with local regulations (in Sweden, Denmark and Finland). The PEO provider acts as a local HR department and ensures correct salaries, tax payments, social security contributions and reporting to the relevant authorities in each country. The company retains operational responsibility for the employee, while the PEO partner takes care of HR compliance, employment contracts, benefits and regulatory requirements, reducing risks and simplifying international expansion in the Nordics.

A Professional Employer Organization, PEO, helps companies outsource payroll management, HR administration and other employer-related processes in Sweden, Denmark and Finland.

In a Nordic PEO solution, the client company normally remains the legal employer. The company manages employees’ work and retains ultimate employer responsibility, while the PEO provider acts as an external local HR and payroll function.

A PEO can, among other things, handle:

• Payroll calculations and salary payments
• Tax deductions and reporting to authorities
• Employer contributions and social insurance
• Pensions, insurance and benefits
• Onboarding and offboarding
• HR administration and personnel documentation
• Support regarding local employment regulations

The term PEO is used in different ways internationally. Therefore, it is important to check who the legal employer is and how responsibilities are allocated in the relevant agreement.

BTR Group offers locally adapted PEO solutions in Sweden, Denmark and Finland.

Yes, in a traditional Nordic PEO solution, the company normally needs to have its own legal entity or be correctly registered as an employer in the country.

The client company is then the legal employer and has the employment contract with the employee. The PEO provider handles agreed administrative tasks, such as payroll administration, tax deductions, statutory reporting, pensions, insurances, benefits and HR support.

If the company does not have a local legal entity and is not registered as an employer, an Employer of Record may instead be a more suitable alternative. In that case, the EOR provider becomes the employee’s legal employer.

The most important difference is therefore:

• PEO: The client company is normally the legal employer.
• EOR: The EOR provider is the legal employer.

BTR Group can help you determine which solution is suitable based on your current company structure, the number of employees and your plans for Nordic operations.

A PEO is suitable for companies that have a legal entity or employer registration in Sweden, Denmark or Finland but lack the local organisation or expertise required to manage payroll and HR correctly.

A PEO can be particularly relevant when:

• The Nordic company is newly established
• The company has a small local team
• The central HR department is located in another country
• The company lacks local payroll and HR staff
• Management wants to consolidate administration with one provider
• The company needs support with local regulations and contacts with authorities
• The business operates in several Nordic countries

A PEO solution frees up internal resources and reduces the risk of administrative errors. The client company remains the employer and makes decisions about, for example, recruitment, pay, duties, performance and termination.

BTR Group can act as the company’s local HR and payroll function in Sweden, Denmark and Finland.

Which tasks can be outsourced depends on the company’s needs and the agreement with the PEO provider. A PEO can usually handle a large part of ongoing HR and personnel administration.

The service may include, among other things:

• Payroll calculation and salary payments
• Tax deductions and employer reporting
• Pensions, insurance and benefits
• Onboarding and offboarding
• Preparation of local employment documents
• Holiday and absence administration
• Handling of bonuses, commission and expenses
• Liaison with local authorities
• HR support for managers and employees
• Support with changes to terms and conditions of employment
• Documentation and administrative support when terminating employment

The client company normally retains responsibility for business and line-management decisions, such as organisation, duties, performance and staffing.

BTR Group tailors the PEO solution to which functions the company already has in-house and which parts need to be handled locally.

In a traditional PEO solution in Sweden, Denmark or Finland, the client company is normally still the employee’s legal employer.

This means that the client company:

• Has the employment contract with the employee
• Manages and allocates the work
• Determines salary, role and duties
• Is responsible for the working environment and personnel decisions
• Retains the ultimate employment-law responsibility

The PEO provider handles the administrative tasks that the parties have agreed on. This can include payroll, taxes, employer reporting, pensions, insurance, benefits and HR support.

The term PEO can be used in different ways in different countries and by different providers. Some international providers describe the arrangement as “co-employment”, but this does not always correspond to a specific legal employment model in the Nordics.

Therefore, the division of responsibilities should always be clearly set out in the service agreement. If the provider instead becomes the legal employer, the service is normally an EOR solution.

The main difference between a PEO and an Employer of Record is who is the employee’s legal employer.

With a PEO solution, the client company normally remains the legal employer. The PEO provider helps with payroll management, HR administration, taxes, reporting, pensions, insurance and benefits. This solution is usually suitable for companies that already have a legal entity or employer registration in the country.

With an EOR solution, the EOR provider becomes the employee’s legal employer. The client company still manages the day-to-day work, but the EOR provider enters into the employment contract and handles the formal employer responsibilities. This solution makes it possible to hire without having your own local company.

In short:

• PEO: You are the legal employer.
• EOR: The EOR provider is the legal employer.

BTR Group offers both PEO and direct EOR in Sweden, Denmark and Finland.

Outsourced payroll management primarily focuses on calculating salaries and producing the documentation needed for payments, taxes and reporting. A PEO solution typically includes broader support across payroll, HR and local employer administration.

A payroll provider can, for example, handle:

• Payroll calculations
• Payslips
• Tax deductions
• Employer reporting
• Payment documentation

A PEO can additionally help with:

• Onboarding and offboarding
• Local employment documents
• Pensions, insurance and benefits
• Holiday and absence administration
• HR support for managers and employees
• Support regarding local rules and processes
• Administration for changes to, or termination of, employment

The client company is normally the legal employer in both arrangements. The difference mainly lies in the scope of the service and how much of the local HR function is outsourced.

BTR Group can offer both payroll management and a more comprehensive PEO solution.

Yes. An international company can use the same PEO provider for its operations in Sweden, Denmark and Finland, provided that the provider has local expertise and capacity in all countries.

A single Nordic provider can give the company:

• A central point of contact for the Nordic markets
• Co-ordinated HR and payroll processes
• Comparable reporting between the countries
• Fewer suppliers and agreements to administer
• Support with local taxes, pensions and insurances
• Local HR support for both managers and employees
• Better overview of deadlines and regulatory requirements

However, the rules are not identical in the three countries. Salaries, reporting, holiday, collective agreements, pensions and insurances must still be handled in accordance with each country’s regulations.

BTR Group offers PEO, payroll and HR services in Sweden, Denmark and Finland. You get a co-ordinated Nordic solution while the administration is adapted to each local market.

Yes. A PEO can take over payroll and HR administration for employees who are already employed by your local company.

Employees normally do not need to change legal employer. The client company retains the employment contracts and employer responsibility, while the PEO provider takes over the administrative processes that have been agreed.

The transition may include, among other things:

• Migration of payroll and employee data
• Review of employment terms
• Registration of pensions, insurances and benefits
• Transfer of holiday and absence balances
• Establishing procedures for bonuses, commission and expenses
• Planning of statutory reporting
• Information to managers and employees

Before the PEO service starts, the existing information should be reviewed to identify any gaps or discrepancies.

BTR Group can plan the transition from your current provider or internal administration and then manage ongoing payroll and HR in Sweden, Denmark and Finland.

The process usually begins with a review of the company’s legal entity, existing employees, local registrations, and current HR and payroll processes.

The implementation normally includes the following steps:

1. Mapping the company’s needs and allocation of responsibilities
2. Review of employment contracts and employee data
3. Collection and migration of payroll information
4. Review of taxes, pensions, insurance and benefits
5. Establishing processes for reporting, approvals and payments
6. Informing managers and employees
7. Testing the payroll calculation before the first regular payroll run

The timeline depends on the number of employees, the quality of existing data, the country and the scope of the service. It is important to plan the transition well in advance of the next payroll run.

BTR Group appoints a contact person who coordinates the implementation and helps ensure a controlled transition to the new PEO solution.

Yes. A PEO can handle large parts of the administrative process when an employee starts or ends their employment.

During onboarding, the PEO provider can, among other things, help with:

• Local employment documents
• Registration in payroll and HR systems
• Collection of tax and bank details
• Pensions, insurance and benefits
• Information about salary, holiday entitlement and absence procedures
• Contact with relevant authorities and suppliers

During offboarding, the service may include:

• Calculation of final pay
• Handling of remaining holiday entitlement
• Deregistration from benefits and insurance
• Employer’s certificate and other documentation
• Final reporting to authorities

The client company still makes decisions about hiring and termination and is responsible for ensuring that employment law requirements are complied with. The PEO provider can provide administrative support and help coordinate the process with local advisers.

A PEO helps the company manage payroll and HR processes in accordance with the rules in Sweden, Denmark or Finland. This reduces the risk of administrative errors, but the client company is still the legal employer and retains ultimate employer responsibility.

The PEO provider can, among other things, help with:

• Local payroll calculations and tax deductions
• Employer contributions and social insurance
• Government reporting
• Holiday, sick leave and other leave
• Pensions and employer-related insurance
• Employment documents and personnel administration
• Updates when rules or reporting requirements change
• Identification of relevant collective agreements

The company is still responsible for, for example, the working environment, day-to-day management, business decisions and the correct handling of personnel matters. Legal advice may also be needed in more complex employment law situations.

Yes, to use a traditional PEO solution, the company usually needs to have its own legal entity in Sweden. The company is then the legal employer and is responsible for employees’ day-to-day work, while the PEO provider handles, for example, payroll administration, HR administration, employer declarations and local compliance. If the company wants to hire in Sweden without establishing its own legal entity, an Employer of Record solution (EOR) may be a better alternative. BTR Group offers both PEO and EOR and can help you choose the right solution based on the company’s establishment, number of employees and long-term plans in Sweden.

Yes, a PEO can help the company move from an EOR solution to employing staff through its own Swedish legal entity. Once the company has been established, employees’ employment, salaries, benefits, pensions, insurance and HR processes need to be transferred to the new employer. BTR Group can coordinate the transition and ensure that payroll administration and reporting to authorities continue without unnecessary interruptions. After the transition, the Swedish company is the legal employer, while BTR Group can continue as the PEO partner and manage local payroll and HR administration.

Yes, a PEO can help administer pensions, insurance and other employee benefits for employees in Sweden. This may, for example, include occupational pension, health insurance, wellness allowance, bonuses, company car benefits and other taxable or tax-free benefits. Which solutions are appropriate depends on the company’s policy, any collective bargaining agreements and the employees’ terms and conditions. BTR Group can help set up and administer a benefits package that complies with Swedish tax and labour law regulations while also being aligned with the company’s international HR policy.

Yes, a PEO can help international companies develop and administer employment contracts and HR policies that are adapted to Swedish regulations. This can include terms for working hours, holiday entitlement, sick leave, notice periods, confidentiality, remote work and employee benefits. A PEO can also help adapt the company’s global HR policies to Swedish requirements and local expectations. BTR Group can provide administrative support and, if needed, coordinate work with employment law expertise. However, it is always the company’s own legal entity that is the employer and bears the ultimate responsibility for the employment terms.

Yes, to use a traditional PEO solution in Denmark, the company normally needs to have its own Danish legal entity. The Danish company is the legal employer and has ultimate responsibility for employees’ employment and working conditions.

The PEO provider acts as an external local HR and payroll function and can handle payroll administration, employer reporting, holiday, pensions, employee benefits and other recurring employer tasks.

The client company continues to manage employees’ day-to-day work and make decisions on, for example, recruitment, salary, duties and performance.

If the company wants to hire in Denmark without establishing a local legal entity, an Employer of Record (EOR) is usually a more suitable alternative. An EOR becomes the legal employer, while a PEO supports a company that already has its own employing entity in Denmark.

A PEO can help a Danish subsidiary manage large parts of local payroll and HR administration. The company remains the legal employer, while the PEO provider acts as an external specialist function with knowledge of Danish rules and processes.

The services may include, among other things:

• Monthly payroll administration and payslips
• Tax deductions and employer reporting
• Reporting via eIndkomst
• Administration of AM contributions and ATP
• Holiday and holiday pay
• Pensions, insurance and employee benefits
• Onboarding and offboarding
• Administration of sick leave and other leave
• Support with employment documents and HR policies
• Ongoing HR support for management and employees

The PEO service can be tailored to the company’s size, organisation and internal resources. For international groups, it may also include reporting and coordination with the parent company’s HR and finance function.

Yes, a PEO in Denmark can handle payroll administration, holiday pay and recurring reporting for a company with a Danish legal entity.

The monthly payroll process may include calculating gross salary, tax deductions, AM contributions, ATP, pensions, employee benefits and net pay. The PEO provider can also produce payslips and report payroll data via the Danish income register eIndkomst.

Holiday administration may include accrued holiday, holiday pay, holiday allowance and reporting to FerieKonto or another appropriate holiday scheme. Which treatment applies depends, among other things, on the employee’s terms of employment and whether the person receives pay during holiday.

The PEO provider can also set up a clear payroll calendar with deadlines for documentation, approval, salary payment and authority reporting. The Danish company remains the legal employer and is responsible for ensuring that complete and correct information is provided to the PEO provider.

Yes, a PEO can help a company transfer employees from an EOR solution to the company’s own Danish legal entity. This often becomes relevant when the business has grown and the company wants to establish a more permanent organisation in Denmark.

The transition may include:

• Planning the transition date
• New employment contracts with the Danish company
• Registering the company as an employer
• Setting up Danish payroll administration
• Transferring relevant HR and payroll data
• Handling accrued holiday
• Pensions, insurance and employee benefits
• Informing the employees
• Coordination between the EOR provider and the new company

Once the transition has been completed, the Danish company becomes the employees’ legal employer. The PEO provider can then continue to manage the ongoing payroll and HR administration.

The process should be planned carefully so that employment terms, salary payments, holiday and benefits continue without unnecessary interruptions.

Yes, to use a traditional PEO solution in Finland, the company normally needs to have its own Finnish legal entity. The Finnish company is the employees’ legal employer and has ultimate responsibility for employment terms and employer obligations.

The PEO provider acts as an external local HR and payroll function and can handle payroll administration, reporting to authorities, pensions, insurance, occupational health services and other recurring HR matters.

The client company continues to manage the employees’ day-to-day work and makes decisions on, for example, recruitment, salary, job duties and performance.

If the company wants to hire in Finland without its own local legal entity, an Employer of Record (EOR) is usually a more suitable alternative. An EOR becomes the legal employer, while a PEO supports a company that already has its own employing entity in Finland.

A PEO can help a Finnish subsidiary manage large parts of local payroll and HR administration. The company remains the legal employer, while the PEO provider acts as an external specialist function with knowledge of Finnish rules and processes.

The services may include, among other things:

• Monthly payroll administration and payslips
• Tax deductions and employer reporting
• Reporting to the Finnish Incomes Register
• Administration of statutory earnings-related pension insurance, e.g. TyEL
• Accident insurance and other statutory insurances
• Coordination of preventive occupational health care
• Holiday, sickness absence and other leave
• Pensions and employee benefits
• Onboarding and offboarding
• Support with employment documents and HR policies
• Ongoing HR support for management and employees

The PEO service can be tailored to the company’s size, industry and internal resources. For international groups, it may also include reporting and coordination with the parent company’s HR and finance function.

Yes, a PEO in Finland can administer payroll, pensions, insurance and occupational health services for a company with a Finnish legal entity.

The monthly payroll process may include calculating gross salary, tax deductions, employer contributions, employee benefits, deductions and net salary. The PEO provider can also produce payslips and report paid wages and other compensation to the Finnish Incomes Register.

The PEO provider can administer the statutory earnings-related pension insurance, for example TyEL, as well as relevant accident and unemployment insurance. It can also help the company set up and coordinate the preventive occupational health services that employers are normally required to arrange for their employees in Finland.

The Finnish company remains the legal employer and retains ultimate responsibility. The PEO provider ensures that administration, reporting and recurring processes are carried out in accordance with the agreed allocation of responsibilities.

Yes, a PEO can help a company transfer employees from an EOR solution to the company’s own Finnish legal entity. This often becomes relevant when the business grows and the company wants to establish a more permanent organisation in Finland.

The transition may include:

• Planning the transition date
• New employment contracts with the Finnish company
• Registering the company as an employer
• Setting up Finnish payroll administration
• Transfer of relevant HR and payroll data
• Handling accrued holiday entitlement
• Setting up TyEL and other statutory insurances
• Coordinating occupational health services
• Informing the employees
• Coordination between the EOR provider and the new company

Once the transition is completed, the Finnish company becomes the employees’ legal employer. The PEO provider can then continue to handle ongoing payroll and HR administration.

The process should be planned carefully so that employment terms, salaries, pensions, insurances and holiday arrangements continue without unnecessary interruptions.

It depends on the company’s turnover and accounting period. VAT can be reported monthly, quarterly or annually, depending on the company’s size and turnover.

If a company does not report VAT correctly, it may be subject to a late filing penalty or estimated taxation, where the Swedish Tax Agency estimates the basis and determines an amount that the company must pay.

The year-end method (cash method): This method can be used by companies with a turnover of less than three million kronor per year. The company records VAT when payment is made by the customer or when the invoice is paid.

The invoice method: This method is used by larger companies with a turnover of more than three million kronor per year. Here, VAT is recorded both when the invoice is issued and when payment is made. 

VAT reporting is done in a VAT return, where both input and output VAT for each accounting period are reported. Even if a company has no VAT to declare, a VAT return must still be submitted.

VAT rates vary depending on goods and services, but the three most common VAT rates are 6%, 12% and 25%. The output VAT must be reported to the Swedish Tax Agency. The difference, i.e. the difference between input and output VAT, must be reported to the Swedish Tax Agency. The company either gets money back or has to pay the difference to the Swedish Tax Agency.

There are two types of VAT: input and output.

• Input VAT is the VAT paid on the goods and services the company purchases. You are entitled to reclaim this VAT.
• Output VAT is the VAT added to the goods and services the company sells.

As an accounting firm, we often take care of the VAT return for our customers. Here we explain what applies when it comes to VAT (value added tax) accounting. VAT must be paid on most goods and services, and as a sole trader you are obliged to report and pay VAT to the Swedish Tax Agency (Skatteverket). For this purpose, all sole traders need to register for VAT with the Swedish Tax Agency and will then receive a VAT registration number.

The accounting requirements for Swedish companies vary depending on the company’s size and legal form. The external accounting is governed by several laws, including the Annual Accounts Act (1995:1554) and the Bookkeeping Act (1999:1078). Generally accepted accounting practice, which means following the relevant accounting rules, recommendations and established practice, is the foundation of all accounting.

Accounting is divided into external and internal accounting. External accounting, which is also called financial accounting, is regulated by law and aims to provide external stakeholders with information about the company’s financial performance and position over a specific period. Internal accounting is often more detailed than external accounting and focuses on providing internal stakeholders, i.e. those who work within the company, with the information they need to make informed decisions.

Accounting is a broader concept than bookkeeping and includes not only the recording of business transactions (bookkeeping), but also year-end accounts, tax returns and reporting. For some companies, especially larger companies, the accounting may be subject to audit, which means that an independent auditor reviews the accounting and assesses whether it presents a true and fair view of the company’s financial position.

Although the terms bookkeeping and accounting are often used synonymously, accounting is a broader concept. In bookkeeping, the company’s invoices, receipts and other supporting documents are recorded, either physically or digitally, in accordance with the methods prescribed by the Bookkeeping Act, which may be either the cash method or the invoice method. All business transactions must be recorded on an ongoing basis, a process known as day-to-day bookkeeping, and organised systematically by accounts, known as ledger bookkeeping. Each business transaction must have a supporting document confirming that the transaction has been carried out.

Accounting also includes other elements such as annual accounts, tax returns and reports that can form the basis for decisions about the company’s future development. The purpose of accounting is to provide an overview of the company’s financial performance. Accounting is of great importance for, for example, the taxation of the business. In limited companies, accounting is also used to make decisions on the discharge of liability for the board of directors and the managing director, as well as on any dividend distribution.

For larger companies, the accounts are often subject to an independent audit in which the auditor assesses whether the accounts give a true and fair view of the company’s financial position. Which parts of the accounting must be carried out under the Bookkeeping Act and the Annual Accounts Act depends on the company’s legal form and turnover. Regardless of the company’s legal form, the accounting must always follow generally accepted accounting principles, meaning that it must be carried out in accordance with laws, recommendations and established practice.

No, a foreign-owned company does not have to hire a local accounting firm in Sweden. However, the company must comply with Swedish rules for bookkeeping, VAT, tax and financial reporting. A Swedish accounting partner can help the company meet local requirements, manage reporting to Swedish authorities and avoid delays or errors. BTR Group can act as the company’s local finance function and handle everything from day-to-day bookkeeping and VAT returns to year-end closing, annual accounts and reporting to the parent company.

Yes, in many cases a foreign company can register for VAT in Sweden without forming a Swedish limited company. This may be relevant, for example, if the company sells VAT-liable goods or services, imports goods, or carries out other transactions that give rise to Swedish VAT liability. The company is then registered for VAT with the Swedish Tax Agency (Skatteverket). Depending on the business, the company may also need to register as an employer, apply for F-tax, or assess whether the activity creates a permanent establishment in Sweden. BTR Group can help assess the registration requirements, complete the registration, and manage ongoing VAT reporting.

A Swedish limited company must keep ongoing accounting records and submit the tax returns and reports that apply to its business. A company with employees must normally submit an employer declaration every month and report withheld tax and employer contributions. The VAT return is submitted monthly, quarterly or annually depending on the company’s registration. The company usually also pays preliminary corporation tax each month. After the end of the financial year, the company must prepare annual accounts and an annual report and submit an income tax return. BTR Group can create a reporting calendar with all of the company’s deadlines and ensure that reporting is done correctly and on time.

Yes, an accounting firm can handle both accounting and payroll administration for a Swedish subsidiary. The service can include ongoing bookkeeping, accounts receivable and accounts payable ledgers, payment documentation, VAT returns, payroll calculations, payslips, employer declarations, benefits, pensions and holiday management. When accounting and payroll are handled by the same partner, it becomes easier to reconcile staff costs, taxes and employer contributions. BTR Group can act as a consolidated Swedish finance and payroll function with a single point of contact for both the Swedish subsidiary and the foreign parent company.

Yes, BTR Group can take over the accounting from an existing accounting firm or an in-house finance department. Before the handover, we review the company’s bookkeeping, systems, access rights, reporting requirements and current deadlines. We collect relevant documentation, for example the general ledger, balance sheet and profit and loss reports, accounts receivable and accounts payable ledgers, fixed asset register, tax history and previous annual reports. We then reconcile opening balances and produce a clear transition plan. A switch can be carried out during the year, but a month-, quarter- or year-end can be a suitable cut-off point. The goal is for the transition to take place without any interruption to the company’s payments, payroll or statutory reporting.

Yes, BTR Group can tailor the reporting to the parent company’s chart of accounts, reporting format, currency and reporting calendar. We can map the Swedish chart of accounts to the group’s chart of accounts and produce recurring reporting packages for, for example, profit and loss, balance sheet, cash flow, accruals and intercompany transactions. The reporting can be adapted to the parent company’s monthly, quarterly or annual close and presented in the desired reporting currency. At the same time, we ensure that the Swedish entity’s bookkeeping, tax returns and annual report comply with Swedish regulations. This way, the parent company receives a consistent basis for group reporting without affecting local compliance.

A branch is part of the foreign company and not a separate legal entity. The foreign company is therefore responsible for the branch’s assets, liabilities and contracts. The branch’s Swedish operations usually need to keep separate accounting records showing its results and financial position. A Swedish subsidiary, on the other hand, is a separate legal entity with its own bookkeeping, annual report and income tax return. Transactions between the subsidiary and the parent company are treated as intra-group transactions. Which form of establishment is most suitable also depends on legal liability, taxation, financing and the business’s long-term plans. BTR Group can help the company understand the administrative differences and set up an appropriate accounting structure.

Yes, BTR Group can act as a coordinating accounting partner for companies operating in Sweden, Denmark and Finland. A joint Nordic solution gives the parent company a central point of contact and makes it possible to coordinate charts of accounts, reporting formats, processes and deadlines between the countries. At the same time, each local entity must comply with the respective country’s rules for bookkeeping, VAT, payroll, tax and annual reporting. BTR Group combines coordination at Nordic level with local expertise in each country. This gives the parent company a clearer overview, fewer points of contact and more consistent financial reporting.

A foreign company operating in Sweden may need to comply with Swedish rules for bookkeeping, VAT, tax and reporting. The company’s obligations depend, among other things, on the scope of the activities, whether the company has a Swedish branch or a subsidiary, whether it has employees in Sweden, and whether the activities create a permanent establishment.

A Swedish subsidiary is a separate legal entity and must keep its own accounts, prepare annual financial statements and file an income tax return in Sweden. A branch is part of the foreign company but normally needs to keep separate accounts for the Swedish operations. A company without a Swedish legal entity may still need to register for VAT or register as an employer in Sweden.

A local accounting partner can help the company identify the requirements and ensure that reporting complies with Swedish rules.

The cost of accounting in Sweden depends on the company’s size, number of transactions, number of employees and how extensive the reporting is. The price is also affected by whether the company needs help with, for example, invoicing, payments, VAT returns, payroll, monthly closings, annual accounts or reporting to a foreign parent company.

Some accounting firms offer a fixed monthly fee, while others charge by the hour or based on the number of transactions and services. A smaller company with few transactions usually pays less than an international company that needs monthly reporting, a group-adapted chart of accounts and reports in multiple currencies.

To get an accurate price estimate, the accounting firm normally needs information about the business, the company type, transaction volume, number of employees and the company’s reporting requirements.

No, not all companies in Sweden need to have an auditor. Smaller private limited companies can usually opt out of an audit provided they do not exceed certain threshold values for number of employees, balance sheet total and net turnover. If the company exceeds more than one of the threshold values for two consecutive years, it may be subject to a statutory audit requirement.

Even companies that are not required to have an auditor can voluntarily choose to have an audit. This can be valuable if the company has external investors, bank financing, international owners or specific requirements from the parent company.

An accounting consultant and an auditor have different roles. The accounting consultant usually helps with the ongoing bookkeeping, tax returns and the annual report, while the auditor independently reviews the company’s accounts and the board’s management.

A foreign-owned company operating through a Danish company must comply with Danish rules for bookkeeping, tax, VAT and financial reporting. The obligations are affected by the company’s legal form, size, activities and registrations.

A Danish subsidiary usually needs to:

• Record business transactions on an ongoing basis
• Retain invoices and other supporting documentation
• Comply with the Danish requirements for digital bookkeeping
• Report and pay VAT when the company is VAT-registered
• Manage payroll and report remuneration via eIndkomst
• Prepare annual accounts and an annual report
• Submit the company’s tax information and tax return
• Document intra-group transactions

A foreign company without a Danish subsidiary may also have Danish registration and reporting obligations, for example for VAT, employer reporting or a permanent establishment. The requirements should therefore be assessed based on how the business is actually conducted in Denmark.

No, a foreign company does not always have to engage a local accounting partner in Denmark. However, the company must ensure that bookkeeping, VAT, tax, payroll and annual reporting comply with Danish rules.

A local accounting partner can help the company understand which registrations and reporting requirements apply and ensure that information is submitted correctly and on time. The support may include, among other things:

• Ongoing bookkeeping
• Accounts receivable and accounts payable
• VAT returns
• Payroll administration
• Account reconciliations and monthly closing
• Annual accounts and tax documentation
• Reporting to a foreign parent company
• Liaison with Danish authorities

This is particularly valuable for international companies that do not have their own Danish finance department. Even when the accounting is outsourced to an external partner, the company’s management retains ultimate responsibility for ensuring that the reporting is correct.

A VAT-registered company in Denmark may need to submit a VAT return every month, quarter or half-year. The reporting period is mainly determined by the company’s VAT-taxable turnover and history.

New companies normally report VAT quarterly during their first period. After that, the Danish tax authority may decide that the company must report:

• Half-yearly for lower VAT-taxable turnover
• Quarterly for medium turnover
• Monthly for higher turnover

In some cases, a company can apply for a shorter reporting period. Companies that use special VAT schemes, for example One Stop Shop, may be subject to different intervals.

The VAT return must be submitted even if the company has had no sales or any purchases during the period. This is called nil reporting. Late or incorrect VAT reporting may lead to fees, interest or an estimated assessment.

A Danish limited company, for example an ApS or A/S, must normally prepare an annual report for each financial year. The annual report is submitted digitally to the Danish Business Authority (Erhvervsstyrelsen) and must comply with the accounting rules that apply to the company’s size and reporting class.

The company must also submit tax information to the Danish Tax Agency (Skattestyrelsen) so that the company’s taxable profit and corporation tax can be determined.

The annual process may include, among other things:

• Year-end closing and account reconciliations
• Calculation of accruals and depreciation
• Tax calculation
• Annual report
• The company’s corporation tax return
• Documentation of intra-group transactions
• Any audit
• Reporting to the foreign parent company

Exact requirements and deadlines depend on the company’s legal form, financial year, size and any statutory audit requirement. The company should therefore prepare an annual reporting calendar with all Danish deadlines.

A foreign-owned company that operates through a Finnish company must comply with Finnish rules on bookkeeping, tax, VAT and financial reporting. The obligations are affected by the company’s legal form, size, activities and registrations.

A Finnish subsidiary usually needs to:

• Record all business transactions on an ongoing basis
• Retain invoices, receipts and other supporting documentation
• Report and pay VAT when the company is VAT-registered
• Manage payroll and report paid compensation to the Incomes Register
• Prepare financial statements and an annual report
• Submit a corporate income tax return
• Document intra-group transactions
• File the annual report with the Finnish Trade Register

A foreign company without a Finnish subsidiary may also have local obligations, for example through VAT registration, employees or a permanent establishment. The requirements should therefore be assessed based on how the business is actually carried out in Finland.

No, a foreign company does not always have to engage a local accounting partner in Finland. However, the company must ensure that bookkeeping, VAT, tax, payroll and annual reporting comply with Finnish rules.

A local accounting partner can help the company identify which registrations and reporting requirements apply and ensure that information is submitted correctly and on time. The support may include, among other things:

• Ongoing bookkeeping
• Accounts receivable and accounts payable ledgers
• Payment documentation
• VAT returns
• Payroll administration
• Account reconciliations and monthly closing
• Annual accounts and corporate income tax return
• Reporting to a foreign parent company
• Liaison with Finnish authorities

This is particularly valuable for international companies that do not have their own Finnish finance department. However, the company’s management retains responsibility for ensuring that the accounts are correct even when the work is outsourced to an external partner.

The standard VAT period in Finland is a calendar month. Smaller companies can, under certain conditions, apply to submit VAT returns quarterly or annually.

A company can normally apply for:

• Quarterly VAT reporting if annual turnover does not exceed the applicable threshold
• Quarterly or annual reporting if turnover is below the lower threshold
• Monthly reporting regardless of turnover

The company’s approved VAT period is shown by its registration with the Finnish Tax Administration. If turnover later exceeds the threshold for a longer VAT period, the company must notify the authority.

The VAT return must be submitted for each reporting period even if the company has not had any VAT-taxable activity. Incorrect or late reporting may lead to late-filing fees and interest. The company should therefore have a reporting calendar with up-to-date deadlines.

A Finnish limited company (Oy) must prepare financial statements for each financial period. The financial statements normally include a profit and loss account, balance sheet, notes and other documents required based on the company’s size and operations.

The company must submit its corporate income tax return to the Finnish Tax Administration within four months after the end of the calendar month in which the financial period ended. The annual report must normally be registered with the Trade Register of the Finnish Patent and Registration Office within eight months after the end of the financial period.

The annual process may include, among other things:

• Financial statements and account reconciliations
• Accruals and depreciation
• Tax calculation
• Corporate income tax return
• Annual report
• Documentation of intra-group transactions
• Any audit
• Reporting to the parent company

All Finnish limited companies must submit an annual report to the Trade Register even if the business has been dormant. The exact requirements are affected by the company’s size, operations and any statutory audit requirement.

When a company moves from an Employer of Record to its own local legal entity, the employees are transferred to the new company, which becomes their legal employer. At the same time, local processes for payroll administration, bookkeeping, tax and financial reporting need to be established.

The transition normally includes:

• Formation and registration of the local legal entity
• Registering the company for tax, VAT and as an employer
• Setting up an accounting system and local chart of accounts
• Implementing processes for invoices, payments and expenses
• Preparing new employment contracts
• Transferring relevant HR and payroll data
• Setting up pensions, insurances and employee benefits
• Implementing local payroll administration and statutory reporting
• Establishing routines for month-end close and reporting to the parent company
• Coordinating the final payroll run through the EOR provider with the first payroll run in the new company

The transition should be planned carefully to avoid interruptions to salary payments, benefits, bookkeeping or statutory reporting. BTR Group can coordinate the transition from EOR to a local legal entity and provide ongoing support with accounting and payroll administration in Sweden, Denmark and Finland.

Yes, a foreign company can register for VAT in Denmark without forming a Danish subsidiary. This may be necessary if the company sells goods or services that give rise to Danish VAT liability, imports goods, or carries out other VAT-taxable transactions in Denmark.

The foreign company is then registered with the Danish authorities and will normally receive a Danish registration number for its local VAT reporting. The registration does not mean that a separate Danish company is formed.

Whether VAT registration is required depends, among other things, on what the company sells, where the customers are located and whether the reverse charge applies. A foreign company that only sells certain services to VAT-registered Danish businesses therefore does not always need to register for VAT.

A Danish VAT registration does not automatically mean that the company has a permanent establishment or becomes liable to pay Danish corporate income tax. These matters must be assessed separately. BTR Group can help determine the need for registration, carry out the registration and handle ongoing VAT reporting.

Yes, a foreign company can register for VAT in Finland without setting up a Finnish subsidiary. Registration may be required when the company carries out VAT-taxable sales in Finland and the reverse charge mechanism cannot be applied. In some situations, a foreign company can also apply for voluntary VAT registration.

Registration may, for example, become relevant in the following cases:

• Sales to private individuals in Finland
• Certain sales of goods in Finland
• Imports or intra-Community acquisitions
• Distance sales that are not handled through another VAT scheme
• Sales where the buyer is not required to account for VAT under the reverse charge mechanism

The foreign company will normally receive a Finnish Business ID for the registration, but no separate Finnish company is established.

Finnish VAT registration does not automatically mean that the company has a permanent establishment or becomes liable to pay Finnish corporate income tax. This must be assessed separately based on the activities. BTR Group can help determine the VAT liability, carry out the registration and manage ongoing VAT reporting in Finland.