Introduction

Are you looking to expand your business globally but don’t have an overseas entity set up yet? Hiring local talent in new markets is key to successful international growth. But registering a foreign company and opening bank accounts can be costly and time-consuming.

Fortunately, there is a solution that allows you to compliantly hire employees abroad without setting up a legal entity – using an Employer of Record (EOR) service. An EOR acts as the legal employer on your behalf, handling all the complex employment, payroll, tax and compliance requirements in the country.

Challenges of Hiring Overseas Employees

Setting up an overseas company to hire employees typically involves:

• Registering a legal entity which can take months and cost over $80,000 on average
• Opening local bank accounts and social security/pension accounts
• Ensuring full compliance with local labor laws, tax regulations and mandatory benefits
• Onboarding employees and running multi-country payroll

This can significantly delay your market entry plans and hiring timelines. You need dedicated legal, finance, HR and payroll teams to navigate the complex process.

The EOR Solution for International Employment

Using an Employer of Record service is the easiest, fastest and most compliant way to hire overseas, whether you need full-time or part-time staff. The EOR provider:

• Supplies their locally incorporated entity to hire the employees on your behalf
• Ensures legal contracts, background checks and onboarding
• Handles local payroll, taxes, mandatory benefits and compliance
• Provides guidance on local culture, customs and employment policies

You get all the benefits of the employees’ work, while the EOR manages the administrative burden and compliance risks. This allows you to enter new markets in a matter of days instead of months.

Ongoing Employment Support

After the initial onboarding, the EOR continues to provide:

• Monthly local payroll and benefits administration
• Tax filings and payments to local authorities
• Ongoing compliance monitoring and guidance on regulatory changes
• Local HR support for your international team

Some companies use the EOR service indefinitely. Others eventually set up their own local entity, at which point the EOR can help transition the employment to their own payroll. Either way, you maintain full control over the employees’ day-to-day work.

Conclusion

Engaging an Employer of Record is the smartest strategy for hiring compliantly in overseas markets, without the cost and complexity of setting up foreign subsidiaries. Look for an experienced global EOR provider like PayInOne that offers a full suite of international employment services tailored for your global growth.

With an EOR handling the onboarding, payroll, compliance and local support, you can focus on finding the best talent to drive your business success abroad. It’s the modern, agile approach to building an international team.