How to build a global team without a local entity

Building a global team is one of the most powerful ways to scale your business. But the old way is broken. The costs and complexity of setting up local legal entities in every new country are a major barrier to growth. There’s a smarter way. An Employer of Record (EOR) like HeroForce lets you hire top talent anywhere in the world, without the administrative nightmare.

This streamlined approach gives you the flexibility and efficiency to build your dream team, no matter where they live. Forget the old rules. It’s time to access a global talent pool and drive your business forward.

The challenge with direct international hiring

Before exploring the benefits of a no-entity approach, it’s crucial to understand the challenges of hiring talent directly in another country. For growing businesses, these hurdles can halt expansion.

• Complex entity registration: Setting up a legal entity in a new country can be challenging. The process can take months and distract you from your core business goals.
• Navigating foreign laws: Employment laws vary drastically between countries. From contracts and termination rules to working hours and leave entitlements, staying compliant is tricky.
• Payroll and benefits headaches: Managing payroll and benefits in a country where you have no expertise is a high-risk game. Different tax systems, social security contributions, and mandatory benefits create a complex web that is easy to get wrong.

How an Employer of Record (EOR) simplifies global expansion

An Employer of Record (EOR) acts as the legal employer for your international team members, handling all HR and payroll duties on your behalf. This allows you to tap into global talent pools quickly and efficiently.

Compliance

An EOR gives you immediate access to local expertise. Instead of spending months researching labour laws, your EOR partner figures that out for you. They manage:

• Employment contracts: Creating contracts that can protect both your business and your employees.
• Labour laws: Understanding all aspects of local regulations, from minimum wage and overtime to termination procedures.
• Risk mitigation: Minimising your exposure to legal disputes and penalties by handling employment for you.

Streamlined and accurate payroll

An EOR processes payroll with local knowledge in mind, including calculating correct tax withholdings, managing social security contributions, and considering local payment laws. You get the peace of mind that your team is paid correctly and on time.

A unified employee experience

Using different systems for international employees creates confusion and a disconnected culture. An all-in-one platform that integrates with an EOR service allows you to manage leave, documents, expenses, and performance for your entire global workforce from a single interface.

Significant cost and admin savings

The no-entity model drastically cuts overhead costs. You avoid high fees associated with entity setup, legal consultations, and ongoing administrative burdens. An EOR centralises tasks like payroll, benefits administration and HR management.

Access to unrestricted talent pools

By partnering with an EOR, you can hire the best person for the job, wherever they are. This access to diverse skills, experiences and perspectives enhances innovation and makes your business more adaptable.

When do you still need to set up a local entity?

While the EOR model is a game-changer, certain business activities may still require a physical and legal presence. For example:

• Industries like manufacturing, physical retail, or regulated professional services that require local facilities, storefronts, or specific licenses.
• If your business model requires a physical footprint to produce goods or serve customers directly.

Hire top talent anywhere with HeroForce

HeroForce is Employment Hero’s Employer of Record service. We enable you to hire talent in over 180 countries, simplifying your expansion while ensuring everything is done legally and ethically. Whether you’re expanding into new markets or struggling to fill critical roles, we connect the best talent with the best employers.