Employer of Record puts people to work in a market where you have no legal presence. HSP Group arranges and manages the employment, watches the tax position as the country grows, and stands up your own entity at the point that costs less than staying on EOR.
SpainOwn entity
PolandOwn entity
BrazilOn EOR
JapanReview dueFirst hire to owned entity · SpainTeams built for
Around 20 to 30% of EOR clients outgrow the arrangement every year, and for most providers that is where the relationship ends. Three things change when the same supplier covers both sides of that line.
Employment, payroll and statutory benefits go live in the target country without a registration in place. You skip the cost, risk and complexity of entity setup and build the team before committing infrastructure to the market.
Entity management, payroll, HR, accounting and tax in 100+ countries is what HSP has done for years, so reaching the entity stage is a step in the plan rather than a supplier change. No re-onboarding, no second procurement exercise.
EOR removes the requirement for an entity. It does not necessarily remove corporate tax exposure, and nothing tells you when per-employee fees have crossed the point where your own entity costs less. We review both as headcount and tenure build.
For most providers the relationship ends at the point you outgrow it, and the entity work goes out to procurement. Here it is the next thing the same team does, with the employment history already in the system the employee is moving into.
Three situations decide whether EOR is the right structure for a market, and all three are tested per country before anything is signed rather than discovered eighteen months in.
Before anything is signed: the restrictions in that jurisdiction, the permanent establishment position, and the point at which an entity becomes better economics. Where EOR is the wrong structure, we say so and set out the alternative.
Employment, payroll and statutory benefits go live without an entity in place, with contracts drafted to local law and contributions withheld and remitted from the first cycle.
As headcount, tenure and spend build, we review permanent establishment triggers and work out when the entity should happen. You get told when the maths changes.
Entity formation, tax structuring, payroll migration and HR consulting, with benefits matched closely enough that employees notice the payroll change and little else.
One agreement, with HSP, covering the interim hiring and whatever the entity position becomes later.
Impel needed to grow internationally and then own the operations it had built. HSP handled both stages: the interim employment that got them into market, and the entity work that followed.
“From the very beginning, HSP demonstrated a deep understanding of what it takes to stand up international operations — from transitioning employees off an EoR model to helping us establish compliant, fully operational legal entities.”
Tom McNerney, Chief Human Resources Officer, Impel
“Their centralised management approach, with a single point of contact, has integrated our employment processes. Especially HSP's flexibility regarding Ingersoll Rand's high-speed processing of hirings is an absolute win for us.”
Markus Wührer, LL.M., Senior Manager Payroll, Compensation and Benefits EMEIA, Ingersoll Rand
Locally compliant employment contracts, offer letters and variations, in-country employment law adherence, worker classification guidance, termination support and offboarding, country-specific regulatory monitoring.
In-country payroll processing and payslips, tax withholding and statutory remittance, social security and contribution management, statutory and supplemental benefits administration, consolidated multi-country invoicing.
End-to-end new hire onboarding, employee self-service, HR briefings and employee communications, background check and documentation coordination, ongoing employee query support.
Employee handbooks and HR policies, benefits benchmarking by market plus sourcing and implementation, grievance and disciplinary process support, leave and absence management, collective bargaining agreement assessments, statutory termination and redundancy guidance, expatriate and mobility support.
Entity formation, local registrations and registered agent, tax structuring and the permanent establishment position, payroll migration, contract novation and employee communications, benefits matched against what employees had before, statutory accounts and the ongoing compliance calendar.
HSP’s global expansion management platform holds your entities, payroll, HR and tax work in one place, with a single view whether a person is employed under the EOR arrangement or through your own entity. This counts most at the transition, when the entity and the filings are already in the system the employee is moving into.
Three situations come up most often. When headcount, tenure and spend in a market reach the point where your own entity costs less and gives you more control. When the jurisdiction restricts third-party employment for the roles you are hiring. And when the work your people do in the country creates a permanent establishment anyway, so EOR is not removing the exposure you expected it to. We test all three per country before anything is signed.
Days rather than the weeks or months an entity registration takes. The exact answer depends on the country’s requirements and how quickly employee documentation comes together, so we give a market-specific answer during the assessment.
No. Plenty of countries never justify one, and staying on EOR indefinitely is a perfectly good answer. We keep the position under review so you know when the economics change, not so you get moved for the sake of it.
Yes, and you do not have to move the employment. HSP delivers entity management, payroll, HR and accounting behind other providers’ EOR arrangements, which is often right when an incumbent contract has time left to run. We review whether the setup is compliant, monitor the permanent establishment position, and handle the entity work when the country reaches that point.
They move onto your payroll. We novate the contracts, match benefits against what they had before, and handle the communications. For most people it amounts to a change of payslip and nothing more.
Yes, and most clients past a certain size do. Both sit in GateWay under one engagement, so the footprint is managed as one thing rather than two.
180+
countries where EOR is available
100+
countries with entity, payroll, HR and tax delivered by HSP
1
supplier, from the first hire to the owned entity
We will assess whether EOR fits each one, and what your own entity would cost by comparison.
An EOR specialist replies within one business day. No sales sequence.
