Testimonial
Manuel Ramos
TERAO ASIA
Managing Director
We think INS Global is a good solution about starting business in new and complex markets. Understanding the market doesn’t mean you need to set up a company immediately.
5/5
Widely known as one of the best countries to do business in and with a solid reputation for building worldwide brands, Sweden is an ideal place to start your new business venture.
Like an international EOR, a PEO (Professional Employer Organization) provides companies with a way to simply and securely expand their operations overseas by outsourcing critical HR services to a third-party provider like INS Global. With a PEO in Sweden, companies can office compliance assurance to employees worldwide in less than 72 hours.
An EOR (Employer of Record) offers employment outsourcing solutions to take care of HR and administrative responsibilities and streamline the global expansion process. INS Global is a provider of third-party EOR in Sweden solutions to companies looking to improve and accelerate their international mobility.
INS Global is a professional employment organization (PEO) and a market leader for PEO and other HR services in more than 80 countries across the globe.
Having a partner who understands the market challenges and can offer you help to get started accelerates your market entry and reduces problems.
Incorporating a legal entity in Sweden may take longer than anticipated, and a rigorous process needs to be followed to ensure you remain compliant. A PEO allows for faster market access, meaning your business can get set up and start generating revenue quicker.
When setting up your legal entity in Sweden, you become liable for the entire setup process and all related business actions. This means that your company needs to stay updated with all employment laws in Sweden. An international PEO company can provide an alternative way to operate in the country while avoiding costly liabilities.
Depending on your business needs, a PEO is likely more cost-effective than setting up your own legal entity. Many companies choose to use a PEO because it requires a lot less time, resources, and staffing to maintain.
Whether you wish to hire more staff in Sweden or you want to reduce the size of your operation to save costs, using a PEO company makes scaling easy.
A professional HR outsourcing partner allows your staff to focus on what matters without exerting the effort required to take care of HR. It also gives you access to a while new range of skills and capabilities without needing to expand your team.
More companies worldwide are starting to use PEO services as an alternative means of company incorporation. For SME’s and companies wishing to try out the market flexibly, a PEO option provides an ideal choice, combining flexibility with stability.
Companies currently partner with PEO services providers over setting up their own separate entities for many reasons. Based on your business needs, targets, and long-term goals, it’s easier to determine the right choice for you.
Manuel Ramos
TERAO ASIA
Managing Director
We think INS Global is a good solution about starting business in new and complex markets. Understanding the market doesn’t mean you need to set up a company immediately.
INS Global ensures proper onboarding and administrative procedures for all of your employees, who will be immediately eligible to work and carry out your operations legally in Sweden.
PEOs are often discussed in the same way an EOR (Employer of Record) in terms of HR outsourcing solutions. However, there are key differences in how these two services offer these services.
INS Global offers both EOR and PEO services in Sweden. Contact our team of PEO specialists today to discuss your needs and determine which service may be best for you.
The most significant feature of the labor market in Sweden for international employers is that it is regulated by employer organizations and trade unions more than by government intervention. Many terms and conditions in an employment agreement are regulated through laws and regulations in collective bargaining agreements.
An employment agreement between an employer and an employee in Sweden does not have to be in written form to be valid.
In general, standard working hours cannot exceed 40 hours per week, and overtime cannot exceed 50 hours in a calendar month.
Overtime pay can be agreed upon through an individual agreement or an applicable collective bargaining agreement.
According to statutory provisions, employees are entitled to at least 25 days of paid holiday each year. Employees can take 20 of these days over a continuous vacation period in the summer months (June, July, and August).
Employees become eligible for the paid holiday after working for a year. In addition to the 25 days of statutory annual leave, there are 13 public holidays in a calendar year. Generally, employees are given paid leave during public holiday periods.
In the case of illness or serious injury that affects the employee’s ability to work, the employee is eligible for paid time off. According to Swedish law, the first day of illness or injury is generally unpaid and is considered a “qualifying day.”
From day 2 up until and including day 14, an employer is responsible for paying the employee 80% of their standard wage.
Sweden has one of the most generous policies regarding parental leave globally. In Sweden, parents are entitled to a continuous period of at least 7 weeks of leave before the expected date of birth and 7 weeks after.
In addition, for a home with two parents, each parent is entitled to 240 days of paid parental leave, cumulatively amounting to 480 days. For single-parent households, the caregiver is entitled to a full 480 days.
Tax residents in Sweden are taxed via a local tax, known as Municipal Income Tax, which ranges between 29.08% and 35.15% annually, depending on the specific municipality. For those who earn above 540,700 Swedish kronor (SEK), they must pay an additional 20% for National Income Tax.
No, it is necessary to use a local entity abroad to comply with each country labor law.
Foreign companies can either set up a local entity in each country or use the services a local PEO (Professional Employment Organization) to hire the staff on-site directly.
The employer of record is the legal entity liable for the staff employed in a specific country. In practice, a foreign company can either open a subsidiary to become the employer of record of its abroad employees or use a PEO to act as the employer of record.
In general, 1-month is necessary to have an employee based out abroad using an existing PEO as the employe of record. When incorporating a new subsidiary to be the employer of record, the delay varies from 4-12 months.
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