How to Hire Abroad Without an In-Country Entity

You may wonder if this is possible to hire abroad without setting up an entity in the targeted country first. It is! There are many ways to expand your business internationally and bring on global talent. 

Some companies choose to set up a legal entity abroad in order to hire foreign employees. However, it’s time-consuming with hidden costs that make the process more complex than simply cutting checks each month for processing payroll services. 

Rather than establishing a permanent foreign entity, other companies prefer to hire workers by contracting them with the support of an Employer of Record (EOR). This way, they can ensure complete compliance while accessing top global talent! Let’s find out how that’s done.

How Does an Employer of Record Work?

Hiring foreign workers has many benefits, but following the country’s local labour laws is crucial. The employment landscape varies widely from one country to another. So if you’re looking for somewhere with similar standards to your home base, an EOR might be the best option!

The Employer of Record solution is a powerful tool for companies that want to ensure compliance when hiring abroad. It allows you, as the company, to maintain complete control over your HR processes from start to finish (running the payroll, paying the various taxes, and allocating your employee’s perks and benefits) without setting up an in-country entity. It also allows you to ensure you prepare locally compliant contracts. That way, you avoid surprises during operations or later when the time to audit comes!

If you want to expand your business without having the hassle of managing payroll, taxes, contract laws and reporting for foreign national employees, then partnering with an EOR is perfect. The Employer of Record will manage all these things while helping you maintain compliance so you can focus on what matters -growing your company! 

How to Pay your Foreign Employees 

Companies that hire abroad take on an enormous responsibility to ensure compliance and avoid fines. When considering hiring abroad without an in-country entity, consider how to pay your foreign workers too. 

The way you pay them will depend on their type of employment. If you choose to employ your foreign worker directly by setting up an in-country legal entity, you would wish to select a payroll partner with some knowledge and experience of the local employment and compensation laws. That is even more recommended shall your employee work in various locations/countries. You would like to work with an experienced multi-country payroll partner. 

If you opt for an Employer of Record solution to avoid setting up a legal entity, then the EOR will pay your foreign employees on your behalf. With the right partner, you can grow your business in a quick and compliant way. 

With Bradford Jacobs, you can enjoy seamless talent sourcing. We attract, find, engage, and onboard the best employees for your business needs, no matter their location. If you want to attract and hire top global talent abroad, contact us today to start your Employer of Record journey to true international mobility!