The idea is that of a Representative Office

While working in the field of supplying HR companies with staffing solutions for many years, we have coined a phrase: virtual company. This solution is not well known but HRsolution has been working with it successfully for quite some time and has thus solved how to directly employ your new team member.

They do not want to immediately have a legal entity in the country as these can be quite costly and bring with them the necessity of bookkeeping, taxes, end-of-year reports etc. However, they do not want to have their employee hired by a staffing agency and loaned out to them – many employees also prefer to be hired by the company directly and to not have to go through a staffing company to be able to work for their desired employer..

If this is the case, HRsolution offers the virtual company: we register you as a foreign employer with all the required authorities. You receive your tax withholding number and we arrange for all social security payments to be made on your behalf.

Advantages of this solution are that no legal or taxable entity is created. Thus the initial cost is much lower than setting up a legal entity. The employee will also receive his employment contract directly with your company and so can have a company email, company business card etc. Disadvantages of this solution are that the employee cannot sign contracts, issue prices etc without Head Office approval. The employment contract should reflect this. If this is not done, then authorities would see this as a taxable branch office. As a matter of fact, a permanent office should be avoided as this would be an indication of a branch office and would then be taxable. At HRsolution we guide you through this process and will help you arrange everything to make the on-boarding of your new employee as easy and as smooth as possible. And should you after a few months or years decide to establish a legal entity, HRsolution can also help with this.

Give us a call or send us an email to get in touch with us. We can provide you with the solution to your problem.

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