When expanding into new countries, businesses have two main options: using an Employer of Record (EOR) or establishing a legal entity. But which one makes more sense?
- What is an Employer of Record (EOR)? An EOR allows you to hire employees in a foreign country without opening a company there. The EOR handles local employment, payroll, taxes, and compliance.
Best For:
- Testing new markets
- Hiring remote teams quickly
- Avoiding legal complexity
- What is an Entity Setup? Opening an entity means establishing a legal business structure (e.g., LLC) in the country. You’ll be responsible for tax registration, legal compliance, and HR setup.
Best For:
- Long-term market entry
- Building a physical presence
- Managing large teams locally
- Key Differences
| Feature | EOR | Entity Setup |
| Setup Time | Days | Weeks or Months |
| Cost | Low | High Initial Investment |
| Control | Less | Full Control |
| Compliance Risk | Minimal | High (you manage it) |
Conclusion Choose EOR if you need speed and simplicity. Choose entity setup for full control and long-term strategy. ComplyHire offers both, and we can guide you through either path.