What to Consider When Registering as a Foreign Employer in Sweden?

Are you about to enter the Swedish market? Have you read our previous blog about registering as a Foreign employer vs. creating a legal entity? If the answer is yes and you have come to the conclusion that the foreign employer arrangement fits better with your company, below are some proceedings to take into consideration.

Registration with Swedish Authorities

As an employer, you typically need to register with the Swedish Tax Agency (Skatteverket) and the Swedish Companies Registration Office (Bolagsverket) if you plan to have a presence in Sweden, such as hiring employees or conducting business activities.

Employment Contracts

In Sweden, employment contracts are regulated by the Swedish Employment Protection Act (LAS). It’s important to ensure that your employment contracts comply with Swedish labor laws, including provisions related to working hours, wages, holidays, and termination notice periods.

Social Security Contributions and taxation

As an employer in Sweden, you are required to make social security contributions on behalf of your employees. These contributions fund various social insurance programs, including healthcare, pension, unemployment, and parental benefits.

Sweden has its own tax regulations, including income tax and value-added tax (VAT). As an employer, you will need to comply with Swedish tax laws and withhold taxes from your employees’ salaries.

Work Permits, Residency and Employment Regulations

If you are hiring foreign nationals to work in Sweden, they may need work permits or residency permits depending on their citizenship and the nature of their employment. It is important to familiarize yourself with Swedish immigration laws and requirements.

Swedish labor laws provide extensive protections for employees, including regulations related to working hours, vacation entitlements, and parental leave. You will need to ensure that your employment practices comply with these regulations.

Trade Unions and Collective Agreements

Sweden has a strong tradition of collective bargaining, and many industries are covered by collective agreements negotiated between employers’ organizations and trade unions. Depending on your industry, you may need to adhere to specific collective agreements.

Its advisable to seek professional advice and consult with legal and tax experts familiar with Swedish regulations to ensure compliance with local laws and regulations when employing workers in Sweden.

Internago is your trusted partner, supporting you in all steps of registering as a foreign employer in Sweden. We also provide international and local payroll and bookkeeping services.

Interested in learning more? Please visit Internago or our Payroll portal.

For further inquiries, contact us at info@internago.com

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