While the global pandemic has hit businesses hard across industries, interestingly, the trend of starting new businesses has increased regardless of all the uncertainty.

How do you hire remote talent internationally in a smart way?

The general rule is that if you want to hire a full-time employee in another country than your company’s place of incorporation, you need to first set up a legal entity in that other country before you can do that. Your operations will then fall under the country’s local regulations such as employment law and sales tax; note that these will affect your ability to conduct business. If you don’t want to or have the capability to do that, your options are pretty much limited to either hiring independent contractors or an EOR.

Independent Contractors

This is perhaps the most common way for a company to hire international workforce. It’s certainly the fastest and most economical way of doing things. You, as the company, sign an agreement with the individual you want to hire, wire them money as mutually agreed and the contractor shall sort out all the local regulatory aspects themselves.

EORs

Employer of Record or EOR is a third party provider that helps companies to employ legal, full-time workers in a different country, state or province. If hiring independent contractors isn’t your game and setting up an entity isn’t timely right now, hiring through a EOR might be your best option – or in most countries, the only option.

EOR’s main function is to serve as a legal entity where you don’t have one. Think of it like a compliant vehicle through which you can do your hiring in a legal way. Some EORs also cover payroll and HR functions but not all, these are mainly in the hands of PEOs (Professional Employment Organizations). There is a difference.

In this case, who is your employee really working for? Legally speaking, your employee is working for the EOR in their local region; but in every meaningful sense, they’d be working for you.

So, the question you are probably thinking is: when should we use an EOR? Here 3 signs to let you know:

Is your Company dealing with any of these situations? Then, an EOR can be especially beneficial for you, contact us and we can help you and your business:
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