I got it working by doing it the other way around. Starting with an empty repo, adding the submodule in a new folder called "projectfolder/common_code". After that it was possible to add the project code in projectfolder. The details are shown below.
In an empty repo type:
git submodule add url_to_repo projectfolder/common_code
That will create the desired folder structure:
repo
|-- projectfolder
|-- common_code
It is now possible to add more submodules, and the project code can be added to projectfolder.
I can't yet say why it worked this way around and not the other.