EoR vs. Owned Entity
Global expansion via an Employer of Record (EoR) solution can be a fast, simple, and cost effective approach for hiring overseas, especially for 1 or 2 employees per country. However, when the in-country headcount reaches even 3, it is often more cost effective to directly hire your employees using an Owned Entity.
Reveal the cost differences between these two approaches with our EoR Cost Calculator. Understand potential cost savings, streamline your operations, and enhance efficiency. Empower your growth with a more cost-effective, self-managed infrastructure across global markets.
Are you contemplating between an EoR and an Owned Entity?
Fill out our EoR Vs. Entity calculator to simulate your options.
Why Choose HSP Group for Global Expansion Services?
A strategic approach to managing your growth with Employer of Record (EoR) services and beyond.
Holistic Expansion Management
HSP Group recognizes that EoR can be an ideal solution for quick, low-risk market entry. We offer a tailored approach, taking the time to understand your business's needs and ensuring that EoR is the right fit for your global goals, while ensuring compliance with local employment laws.
Tailored Expertise
Our expert-led team provides unmatched guidance on when and where EoR makes sense for your business. We manage your operations seamlessly, but we also help you plan for future growth. As your company expands, we ensure you’re prepared to transition from EoR to entity management as needed.
Future-Ready Support
EoR isn’t always a permanent solution. HSP Group helps you think ahead, preparing your business to 'graduate' from EoR when it becomes more cost-effective to establish your own entity. We ensure a smooth transition and continued success as your global footprint grows.
EoR vs. Owned Entity
AT A GLANCE
HIRING THROUGH AN EoR
OWNING AN ENTITY
Setup Time
Faster, ideal for quick market entry.
Longer, more complex due to local regulations.
Cost
Lower upfront costs with ongoing EOR fees.
Higher upfront costs, but potential long-term tax benefits.
Control
Limited control, as the EOR handles compliance and HR.
Full control over business operations and staff.
Compliance
EOR manages compliance, reducing legal risks.
Direct responsibility for legal and regulatory adherence.
Scalability
Easier and faster to scale in multiple markets.
More suitable for long-term, large-scale expansion.
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The Essential Role of EoR and Entity Management in Global Expansion
Effective management of HSP’s EoR and Entity services is crucial for navigating international business growth. Whether leveraging the flexibility of an Employer of Record (EoR) or the autonomy of owning legal entities, our services ensure compliance with global regulations while simplifying cross-border operations.
These solutions allow organizations to expand seamlessly while meeting their legal obligations and managing the risks associated with global expansion. HSP Group’s EoR and Entity Management services offer specialized expertise and advanced technology, helping businesses streamline operations and focus on their strategic growth, while we handle the complexities of managing employment, compliance, and global business administration.
CASE STUDY
Facilitating a Seamless Global Expansion for Ingersoll Rand
Overall, our partnership with HSP Group has not only met but exceeded our expectations, and we look forward to continuing this successful collaboration as we expand further globally.”
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We Simplify Your Expansion So You Can Focus on Your Business
Navigating the complexities of managing international operations—whether through an Employer of Record (EOR) or owning legal entities—requires meticulous attention to detail and compliance with varying local regulations. How do you manage the legal implications across different countries? What’s the best approach to ensure seamless expansion while maintaining compliance? HSP specializes in overcoming these challenges, offering precision and consistency to ensure your operations run smoothly as your business scales globally.
Embrace the Advantages that HSP’s EoR to Entity Services Provide:
STREAMLINED OPERATIONS
Access comprehensive insights through GateWay, our leading global management system, designed to give you a clear overview of your international operations. This platform simplifies complex global workforce management by providing all the necessary information to effectively manage staff across different regions and legal jurisdictions.
ASSURED ACCURACY
Stay ahead of potential challenges in global expansion by avoiding costly mistakes and ensuring adherence to international regulations. HSP’s services are designed to help maintain compliance and mitigate risks, whether you’re leveraging EoR for market entry or managing your own entity. Our solutions ensure precision and consistency as your operations grow.
LOCAL INSIGHT, GLOBAL SCALE
Benefit from our extensive knowledge of local laws and practices to make strategic decisions that support your workforce. Our global reach, combined with deep local expertise, enhances operational efficiency and ensures compliance across all markets, enabling your business to expand confidently and efficiently.
The GateWay Advantage
GateWay, our proprietary global expansion management platform, is at the heart of our global employment solutions, providing unmatched access to data and analytics tailored for EoR management. Designed to streamline your global employment processes, GateWay offers real-time insights and a comprehensive dashboard for visibility into your international staffing operations. This platform simplifies complex employment tasks, enabling you to maintain a clear and informed perspective on managing your global workforce through our EoR services.
Frequently Asked Questions
Owning an entity means establishing a formal legal presence in a country, which gives you complete control over operations, hiring, and compliance with local laws. In contrast, hiring through an Employer of Record (EoR) allows you to manage employees in that country without setting up a legal entity, with the EoR taking responsibility for local compliance and payroll.
A company should consider transitioning when long-term presence, cost efficiency, or greater control over local operations becomes important. While an EoR is ideal for quick market entry and low-risk expansion, owning an entity may offer tax benefits and greater autonomy for larger, more permanent operations.
An EoR mitigates risk by handling all compliance, payroll, and tax obligations, reducing your company’s exposure to local regulatory risks. By contrast, owning an entity means you take on the full responsibility for compliance, including any local labor laws, tax obligations, and other legal requirements.
In the short term, an EoR is often more cost-effective due to lower upfront setup costs and less administrative burden. However, as your business scales or becomes more permanent in a country, owning an entity can offer long-term cost savings, particularly in terms of reduced service fees and potential tax advantages.
A company can operate with an EoR indefinitely, especially if the workforce remains relatively small and the company doesn’t require full control over operations. However, if your business plans to scale significantly or stay in the country for the long term, transitioning to entity ownership may provide more strategic benefits, such as cost efficiency and greater operational control.
