Global Hiring Without the Compliance Headaches
Your perfect engineering candidate lives in Portugal. Your rockstar designer is in Argentina. Your best customer success hire works from Thailand. They're all remote-first and won't relocate.
A decade ago, this meant establishing legal entities in three countries, navigating foreign employment law, managing international payroll, and hiring expensive compliance attorneys. Today, you have simpler options.
Three Models for Global Hiring
Option 1: Employer of Record (EOR) Platforms
How it works: EOR platforms legally employ workers on your behalf in foreign countries. You manage the employee day-to-day; the EOR handles payroll, benefits, taxes, and compliance.
Popular platforms: Deel, Remote, Oyster, Papaya Global
Cost: $500-$800/month per employee plus local salary and benefits
Best for: 1-10 employees per country, testing new markets, avoiding entity setup
Option 2: International Contractors
How it works: Hire workers as independent contractors rather than employees. They handle their own taxes and benefits.
Cost: No platform fees, just contractor payments
Best for: Project-based work, part-time roles, testing relationships before committing
Option 3: Foreign Entities
How it works: Establish legal subsidiary in target country and hire directly as local employer.
Cost: $10,000-$50,000 setup, $20,000-$50,000 annual maintenance
Best for: 10+ employees in one country, establishing market presence, long-term commitment
Decision Framework: Which Option When
Use contractors when:
• Worker truly operates independently
• Relationship is project-based or part-time
• Worker has other clients
Use EOR platforms when:
• You need full-time employees
• Hiring 1-10 people per country
• Want to avoid entity complexity
Use foreign entities when: Hiring 10+ people in country, establishing market presence, EOR costs exceed entity maintenance costs
The Bottom Line
Global hiring no longer requires massive legal and compliance infrastructure. EOR platforms handle employment complexity for reasonable fees. Contractors work for project-based needs. Entities make sense only at scale.
Need Help With Global Hiring Strategy?
Arena Recruiting helps startups navigate international hiring including EOR selection, contractor vs. employee decisions, and compliance considerations. Learn more at www.arenarecruiting.com.
