International Entity Formation — Set Up a Subsidiary in 120+ Countries
Setting up a legal entity overseas is the right move when you’re committing to a market for the long haul. Bradford Jacobs handles incorporation, tax registration, banking, and ongoing compliance — and will tell you honestly when an EOR would serve you better.
International Entity Formation — Set Up a Subsidiary in 120+ Countries
Setting up a legal entity overseas is the right move when you’re committing to a market for the long haul. Bradford Jacobs handles incorporation, tax registration, banking, and ongoing compliance — and will tell you honestly when an EOR would serve you better.
When Does Entity Setup Actually Make Sense?
Most companies that ask us about entity formation don’t actually need an entity yet. We make money on entity formation — and we still direct ~40% of inbound enquiries toward EOR first. Most providers won’t say that. We can because we offer all three routes.
Entity vs EOR vs PEO — The Real Cost Comparison
At 5 employees, all three models cost roughly the same over 24 months. The crossover point in favour of an entity typically arrives between 8 and 12 employees per country. But entity takes 3–6 months to set up and 6–18 months to wind down — that asymmetry is why we recommend starting with EOR and migrating once the market is validated.
| Cost line | Local entity | EOR | PEO |
|---|---|---|---|
| Setup / incorporation | £8,000–15,000 | £200–500/employee | £500–1,500/employee |
| Registered office (yr 1+) | £2,000–4,000/yr | Included | Included |
| Local accounting & bookkeeping | £8,000–15,000/yr | Included | Included |
| Statutory audit (where required) | £4,000–8,000/yr | Included | Included |
| Local payroll provider | £3,000–6,000/yr | Included | Included |
| Employment lawyer (retainer) | £3,000–10,000/yr | Included | Included |
| Tax & VAT filings | £2,000–4,000/yr | Included | Included |
| 24 month total (5 employees) | £50,000–100,000+ | £55,000–85,000 | £50,000–86,000 |
What’s Included in Our Entity Formation Service
We handle the full setup then optionally provide ongoing entity management — so you don’t need to assemble a local accountant, lawyer, bank, and tax advisor in each market.
Timeline — What Takes 3 Months and What Takes 6+
We project-manage the whole process and flag risks early. If we see a bank KYC delay coming, you’ll know at week 3 — not week 10.
Country-by-Country Incorporation Costs (Top 15 Markets)
Approximate first-year costs including incorporation and standard ongoing compliance. Figures are indicative for a straightforward private limited company with no industry-specific licensing requirements.
| Country | Incorporation | Year 1 ongoing | Year 1 total |
|---|---|---|---|
| UK | £1,500–3,000 | £8,000–12,000 | £9,500–15,000 |
| Ireland | £2,500–4,000 | £10,000–15,000 | £12,500–19,000 |
| Germany | £8,000–12,000 | £12,000–18,000 | £20,000–30,000 |
| France | £6,000–10,000 | £10,000–15,000 | £16,000–25,000 |
| Netherlands | £4,000–7,000 | £10,000–14,000 | £14,000–21,000 |
| Spain | £4,500–7,500 | £8,000–12,000 | £12,500–19,500 |
| Switzerland | £10,000–15,000 | £15,000–22,000 | £25,000–37,000 |
| USA (Delaware C-corp) | £2,000–4,000 | £6,000–10,000 | £8,000–14,000 |
| Singapore | £3,500–6,000 | £10,000–15,000 | £13,500–21,000 |
| UAE (Dubai free zone) | £6,000–12,000 | £8,000–14,000 | £14,000–26,000 |
| India | £4,000–7,500 | £10,000–16,000 | £14,000–23,500 |
The Hidden Costs Nobody Warns You About
The headline incorporation cost is what gets you in the door. These line items are why budgets blow out. We cover all of them in our scoping call before you commit.
- Bank KYC delays. Banks now routinely take 8–16 weeks to onboard a new corporate client. While you wait, you can’t pay suppliers, receive payments, or run payroll. Budget for a temporary EOR arrangement to bridge.
- Nominee director liability. Jurisdictions including Singapore, UAE, and parts of the EU require at least one resident director. The nominee director costs £2,000–5,000/year and assumes legal responsibility — meaning full documentation is expected, which adds friction.
- VAT registration thresholds. In some markets you can’t register for VAT until you’ve crossed a turnover threshold, meaning you can’t reclaim input VAT on setup costs.
- Transfer pricing documentation. Once your local entity transacts with your parent, you owe transfer pricing documentation in most OECD jurisdictions. Annual cost: £3,000–15,000 depending on complexity.
- Statutory audit thresholds. UK, Germany, France, and others mandate statutory audit above certain revenue, asset, or headcount thresholds. Audit costs £4,000–15,000/year.
- Wind-down asymmetry. Setting up a German GmbH takes 8 weeks. Winding one down takes 12–18 months — you must file accounts, settle all tax liabilities, advertise the liquidation, and wait out a creditor protection period.
- Director personal liability. In several jurisdictions, directors of insolvent companies can be personally liable for unpaid taxes and contributions.
- Cross-border tax substance requirements. Many jurisdictions require evidence of real local employees and local decision-making to claim local tax residency. A “letterbox” entity is increasingly risky.