VEO · Virtual Employer Organization

Employ directly in Germany and Spain. No entity, no EOR.

Some countries let a foreign company employ people without incorporating, by registering as a non-resident employer for payroll and social security. Ubique does the registration, runs the payroll and keeps you compliant. Your company is the employer. There is no local company to maintain.

Available in Germany, Spain, France, the Netherlands, Portugal, Poland and Ireland. Quote-based, from 3 employees per country.

VEO markets
GermanyUTC+2
SpainUTC+2
NetherlandsUTC+2
PortugalUTC+1
What VEO is

A registered foreign employer, without the company

Germany, Spain and several other EU countries allow a company with no local presence to register with the social security and tax authorities as a non-resident employer. Once registered, your company can sign local employment contracts, run local payroll and pay contributions directly, as if it had an entity, but without one.

The catch is the registration itself, the payroll, and staying compliant with rules written for local companies. That is the part Ubique runs. We call it a Virtual Employer Organization because, to the employee and to the authorities, your company looks like a fully registered employer. To your finance team, there is no entity: no accounts to file, no local director, no audit, no corporate tax return.

  • Ubique registers your company as a non-resident employer with social security and tax authorities
  • Employment contracts in your company's name, drafted to local law and collective agreements
  • Monthly payroll, payslips, contributions and filings run by Ubique's local team
  • Compliance monitoring: working time, leave, minimum wage, collective agreement updates
  • Representation with authorities where the country requires a local fiscal representative

Who it is for

Companies with three or more employees in a VEO country who want to stay there for years, want their own name on the contract, and do not want the cost of an entity. Common cases: a product team in Berlin, a support team in Málaga, an acquired company you are integrating.

Who it is not for

One hire for a year: use EOR, it is faster and simpler. Businesses that need a local presence for sales, VAT or regulatory reasons: a non-resident registration does not give you a permanent establishment and is not meant to. We will say so in the first call.

Permanent establishment

A payroll registration does not by itself create a taxable presence, but your activity might. Ubique checks the roles you plan to employ against the country's tests and tells you where the line is. For a sales director signing contracts in Germany, VEO may be the wrong tool.

VEO vs EOR

Same countries, different employer

Both put an employee on a compliant local contract with local payroll. The difference is whose name is on it, and what that means over time.

VEOEOR
Legal employerYour company, registered as a non-resident employerUbique's local entity
Local entity neededNoNo
Time limitsNone. Employment is direct and indefiniteSome countries limit employee leasing; Germany caps it at 18 months
Employment liabilityYour company, with Ubique running complianceUbique
Setup time4 to 8 weeks for the registration, then days per hire2 to 5 business days per hire
Minimum headcount3 employees per country1
Countries7 EU markets today160
Equity and benefitsGranted directly by your companyVia Ubique, with add-ons for equity
Monthly costLower per employee from 3 employees, quotedFrom £499 per employee
ExitEmployees are already yours; nothing to transferTransfer to your entity, with Ubique's help
Timeline

From decision to first VEO payslip

Week 1: scoping

Roles, headcount, country. Ubique checks permanent establishment risk and confirms VEO is the right fit. If it is not, we say so and propose EOR.

Weeks 2 to 6: registration

Ubique files with the social security and tax authorities, appoints a fiscal representative where required and sets up the payroll. Germany typically takes four to six weeks; Spain three to five.

Week 6 to 8: contracts

New hires sign employment contracts in your company's name. Employees moving from EOR or from a closing entity sign transfer agreements that preserve seniority and accrued leave.

Month 3 onwards

Monthly payroll in the same calendar as your other countries. Compliance updates arrive in the dashboard. Nothing to file for the entity, because there is none.

“We had entities in Germany and Spain for 14 people. Two sets of statutory accounts, two local accountants, two audits, and a director who had to fly out to sign things. We moved everyone to VEO, closed both entities, and nobody on the team noticed anything on payday. The contracts still say Kestrel Labs. Our finance close got two weeks shorter.”

Marcus Oyelaran
CFO, Kestrel Labs

Closing an entity has its own timeline and tax steps. See M&A and entity wind-down for how Ubique sequences the transfer and the liquidation.

FAQ

Questions about VEO

Why do only some countries allow this?

Non-resident employer registration exists in countries whose social security systems are designed to accept contributions from foreign employers. Most of the EU does. Many countries outside Europe do not, which is why VEO is available in seven markets today and EOR covers 160.

Does VEO create a permanent establishment?

Not by itself. A payroll registration is not a taxable presence. What creates a permanent establishment is the activity of the people you employ, such as habitually concluding contracts on your company's behalf. Ubique assesses the roles at scoping and tells you where the risk sits. For a definitive view on your situation you should take tax advice, and we can introduce local advisers.

Can we move employees from EOR to VEO?

Yes. This is the most common path: start with EOR to hire quickly, then move to VEO once the team reaches three or four people and you know you are staying. Ubique prepares the transfer agreements and the employees keep their seniority and leave balances.

Who handles a dispute or a dismissal?

Your company is the employer, so decisions are yours. Ubique's local team advises on the lawful process, prepares the documents and calculates severance. For litigation, we introduce local employment counsel.

How is it priced?

A one-off registration fee per country, then a monthly fee per employee that is lower than EOR because Ubique carries less liability. It is quoted, because it depends on the country, the headcount and whether a fiscal representative is required. Salary and employer contributions are passed through at cost, as with every Ubique product.

Find out whether VEO fits your team

Bring the country and the roles. We tell you in thirty minutes whether VEO, EOR or an entity is the right answer, and what each costs.