In order to work legally as a freelance consultant in Sweden, it is necessary to be registered as either an enskild näringsidkar (sole trader) or set up a limited company. When you employ freelance consultants, it is important to check their status beforehand.
Enskild Näringsidkar (Sole Trader)
In order to work as an enskild näringsidkare in Sweden, it is a requirement to register a business with the Swedish Tax Agency and, if necessary, the Swedish Companies Registration Office.
Swedish nationals can use their personal identification number for the process. Non-Swedish nationals must obtain a samordningsnummer (coordination number) for contracts under a year or register on the folkbokförd (Swedish Population Register) for longer contracts.
Freelancing as a sole trader has significant administrative benefits and is simple when it comes to tax. Therefore, it is a popular option for those beginning their contracting career.
Aktiebolag (AB) Company (Limited Company)
The second option is trading through a limited company. To do this, it is a requirement to register a business with the Swedish Companies Registration Office and the Swedish Tax Agency.
Contracting through a limited company has numerous tax, financial and risk benefits. However, it can be slightly more complex to set up and run. This is a popular option for experienced sole traders or those entering a long-term contract.
The Benefits of Hiring Freelancers
Working with freelance consultants has a whole host of benefits, for all business sizes. Some of these include:
- Flexibility. Hiring freelancers is an efficient way of completing a project without needing to employ permanent employees.
- Experience and knowledge. Freelancers who have worked on many similar projects before can bring that expertise to your business.
- Access to global talent. Not being tied to one geographical location means that you can access talent from around the world.
- Cost savings. These include onboarding costs, equipment and office space, and employee benefits.
Finding a Freelancer for Your Project
Evolution can source freelancers for your next tech project, providing you with the talent you need to grow. Please contact us to discuss your requirements.