# EOR, freelancer or Italian subsidiary: three routes for a Nordic company

> How a Swedish, Danish, Norwegian or Finnish company can have people working in Italy: an Employer of Record, a freelancer, or its own srl. Pros, risks, timing.

A Nordic company that wants people in Italy has three practical options. Which one fits depends on how many people, for how long, and whether they will sell in your name.

## Route 1: freelancers

The Italian freelancer invoices on a VAT number (partita IVA). It is fast and requires nothing from you in Italy.

It fits short, clearly defined projects with real independence: the freelancer has other clients, decides how and when to work, and delivers a result.

It does not fit a person who works only for you, full time, on your schedule, with your tools and in your team. Italian authorities can reclassify that as employment. You then owe the contributions and tax that should have been paid, plus penalties. Many Nordic companies drift into this situation: a consultant who became "one of the team" over two years.

## Route 2: your own Italian company

An Italian srl (limited company) or a branch makes you the employer directly. It fits stable teams, local sales and a long-term commitment.

What it involves: incorporation, a bank account, registrations with the tax agency, INPS and INAIL, payroll, statutory accounts, an accountant and annual filings. It takes months to set up and creates fixed costs that remain if plans change. A branch or subsidiary is also the clear answer when Italian staff conclude contracts for you.

## Route 3: Employer of Record

An Employer of Record (EOR) employs the person on your behalf. We hold the Italian contract under the right CCNL, run payroll and filings, and you direct the work.

It fits first hires, market tests and small distributed teams. Start-up time is days for EU and EEA citizens. There is nothing to register in Italy, and the cost is the employment cost plus a flat fee: €250 per employee per month with us, invoiced in SEK, NOK, DKK or EUR.

## Side by side

| | EOR | Own srl or branch | Freelancer |
|---|---|---|---|
| Time to start | Days | Months | Days |
| Legal employer | EOR | Your company | None |
| Your obligations in Italy | None | Payroll, filings, accounts | Keeping it genuinely independent |
| Main risk | Low | Fixed costs | Reclassification |
| Monthly cost | Employment cost + fee | Employment cost + local admin | Invoice |

## A common path

Many Nordic companies follow the same sequence:

1. A freelancer or two to test the market.
2. Conversion to employment through an EOR once the work becomes ongoing.
3. An Italian company when the team is large and stable or local sales require it, with the employees transferred without losing seniority.

Each step is reversible except the last, which is why it usually comes last.

## Questions to ask yourself

- Will the person work only for us? Then not a freelancer.
- Will they sign contracts with Italian customers in our name? Discuss permanent establishment before choosing.
- How many people in 18 months? One to five usually means EOR; a larger, stable team points to an entity.
- How certain is the plan? Uncertainty favours a route without fixed costs.

## Questions we hear from Nordic companies

**How long does an Italian srl take to set up?**
Months rather than weeks: incorporation, bank account, tax, INPS and INAIL registrations, and a payroll provider. Plan the timeline before you promise a start date to candidates.

**Can we start with an EOR and switch later?**
Yes. Employees move to your company without losing seniority, and the CCNL and level normally stay the same. Many Nordic companies follow exactly this path.

**Is an EOR more expensive than our own company?**
For a small team, usually not once you count local accounting, payroll, filings and management time. For a large stable team, an entity becomes more efficient. Compare total cost over two or three years.

## In short

Freelancers fit short, independent projects. An EOR fits the first hires and small teams, with no set-up and a flat fee. Your own company fits a large, stable team or a business that sells locally. Most Nordic companies move through these stages in order. The mistake to avoid is staying too long in the first stage, when the freelancer has quietly become an employee.

For a detailed comparison, see [EOR, own company or freelancers](/italy-eor-vs-entity.html). For the cost of the EOR route, use the [cost calculator](/calculator.html).

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Source: https://italyteams.com/articles/eor-freelancer-or-italian-subsidiary.html · 2026-10-18