Taking your business across borders is a major step, and one full of opportunity. Whether you’re entering a new market for the first time or expanding an existing footprint, the right planning can unlock long-term growth.
How This Checklist Helps
- Breaks down the hiring process into clear, actionable steps.
- Highlights critical considerations like cost benchmarking, compliance, and employment models.
- Equips you with practical insights to streamline decision-making and mitigate risks.
Who This Is For
This checklist is tailored for businesses designing their global expansion journey. It focuses on key steps to ensure hiring compliance, control costs, and establish sustainable operations across multiple markets.
Key Considerations for Target Market Selection
- Entry and Exit Ease: Evaluate the ease of market entry and flexibility to exit without long-term obligations.
- Favourable Tax Policies: Identify countries with competitive employment tax structures.
- Hiring Cost Benchmarking: Assess labour costs and compare them across countries to ensure competitiveness.
- Strategic Fit: Focus on countries with strong demand for your products or services and a skilled workforce aligned with your hiring needs.
Choosing Employment Models: Establishing a Local Entity
Establishing a legal entity gives you full operational control, but it also anchors you to the jurisdiction with all the legal, fiscal, and administrative complexity that entails. In many cases, it’s not the fastest or most efficient route to market entry.
Process Overview
Setting up a subsidiary or branch means formal registration with local authorities, onboarding with tax and social security systems, and appointing local directors where required. These are not nominal tasks, in many jurisdictions, the process involves multiple athorities and requires in-country representation.
Cost Implications
Beyond registration and legal fees, the cost base includes mandated corporate services, statutory audits, annual filings, and local representation. These are non-negotiable and often front-loaded, long before the first hire is onboarded.
Operational Complexity
An entity brings control, but also full exposure. You’ll need local HR protocols, compliant employment contracts, statutory benefits administration, and payroll infrastructure — all aligned with host-country legislation. Any gaps may result in liabilities or enforcement action.
Time Constraints
Market entry can be delayed by 3–6 months or more, depending on the country. Bottlenecks often stem from document verification, banking restrictions, or opaque regulatory sequences, especially in markets with limited digital processes.
Risks and Obligations
You take on direct liability for corporate tax, payroll compliance, statutory reporting, and employment-related claims. In some jurisdictions, directors may be personally liable for delays or non-compliance. These are real-world obligations, not theoretical concerns.
Long-Term Commitment
Establishing a local entity creates fixed obligations — from board-level reporting to maintaining appointed local directors, registered offices, and in-country banking. Even low-activity entities require ongoing compliance and justification within your corporate governance model. Exiting the market later can be as complex as entering it.
Establishing a Local Entity vs. Using a Global Employer of Record (EOR)
| Aspect | Local Entity | Global EOR |
| Time to Hire | Months due to setup processes | Weeks: EOR handles onboarding immediately |
| Initial Costs | High: legal fees, registration, audits | Minimal: no upfront setup costs |
| Compliance Management | Full responsibility for compliance risks | 100% liability assumed by EOR, ensuring local compliance |
| Flexibility | Flexible entry and exit options | Fixed commitment to the market |
| Scalability | Limited by entity capacity and resources | Easily scalable across multiple markets |
| Operational Burden | High: managing payroll, taxes, filings locally | Lower: Global EOR centralises and simplifies operations |
| Permanent Establishment (PE) Exposure | Inherent: a local entity constitutes a taxable presence, subject to corporate income tax and local filings | Limited: Global EOR employs staff under its name, helping clients avoid triggering PE in most cases |
Pre-Hiring Assessment
Workforce Strategy Planning
- Identify the countries where talent is needed.
- Decide on the roles and responsibilities for each position.
- Determine the type of employment (e.g., permanent, temporary, or contractors).
Setting Hiring Objectives
- Define the number of workers required and their expected nationality.
- Establish expected salaries and determine payment currency.
- Clarify the expected duration of employment contracts.
Hiring Priorities and Insights
- Assess the availability of required skills in local and global markets.
- Conduct salary benchmarking against industry standards in each target country.
Employer Taxes and Contributions
- Social Security: Contributions for pensions, disability, healthcare, unemployment, and other social welfare programs.
- Unemployment Insurance: Premiums to cover employee job loss, where mandated.
- Payroll Taxes: Employer-specific taxes levied on wages, including local or regional levies.
- Workers’ Compensation: Insurance covering workplace injuries and illnesses.
- Mandatory Savings Schemes: Statutory contributions to government or private funds (if applicable).
- Corporate Taxes: Taxes based on company operations and profits in the host country (if applicable).
Employee Taxes and Contributions
- Income Tax: Progressive or flat-rate deductions from employee wages, often withheld by the employer.
- Social Security Contributions: Contributions deducted from employee wages to support pensions, healthcare, and other welfare programs.
Other Costs
- Minimum Salary Thresholds: Confirm government-mandated visa and work permit eligibility thresholds to ensure compliance.
- Registration and filing fees: Local labour law compliance requirements and reporting obligations.
International Employment Contracts
Well-drafted employment contracts are central to compliant and effective cross-border hiring. They define the terms of engagement, align with local legal standards, and provide clarity for both employer and employee. This section highlights the key components that ensure contracts are enforceable, locally compliant, and operationally sound across jurisdictions.
Employment Contract Drafting
- Tailor contracts to comply with the host country’s legal framework and labour laws.
- Include mandatory provisions such as working hours, statutory benefits, probation periods, and termination conditions.
- Specify applicable law and jurisdiction to govern disputes effectively.
Intellectual Property and Confidentiality
- Incorporate robust IP clauses to secure ownership of work-related creations.
- Define clear confidentiality terms to protect sensitive business information.
- Address non-compete and non-solicitation agreements where permissible by local laws.
Statutory Policies and Employee Rights
- Outline statutory leave entitlements, including annual leave, sick leave, and maternity/paternity leave.
- Include workplace rules such as health and safety obligations and anti-discrimination policies.
- Ensure compliance with mandatory benefits like pensions, healthcare, and severance pay.
Language and Localisation
- Outline statutory leave entitlements, including annual leave, sick leave, and maternity/paternity leave.
- Include workplace rules such as health and safety obligations and anti-discrimination policies.
- Ensure compliance with mandatory benefits like pensions, healthcare, and severance pay.
Signing and Execution
- Ensure proper execution of contracts, including signatures and witness requirements where applicable.
- Arrange registration of agreements as required by local regulations.
- Maintain signed agreements in compliance with local data retention and privacy laws.
Amendments and Updates
- Include a process for contract amendments to reflect changes in employment terms.
- Regularly review contracts to align with updates in labour laws and regulations.
- Communicate updates to employees in a transparent and timely manner.
Payroll and Benefits Setup
1. Establish Payroll
- Determine payment frequency, currency, and compliance with local tax laws.
2. Registration Processes
- Income tax, corporate tax, and employee withholding.
- Social security and unemployment contributions.
3. Design Benefits Packages
- Include statutory benefits and additional perks (healthcare, pensions, equity plans).
4. Holidays and Leave Entitlements
- Annual Leave: Ensure compliance with country-specific statutory requirements for paid vacation days.
- Public Holidays: Account for mandated public holidays and how they affect work schedules.
- Sick Leave: Outline entitlements, required documentation, and payment during the absence.
- Maternity/Paternity Leave: Adhere to local laws for parental leave durations and compensation.
- Special Leaves: Include bereavement, jury duty, or other statutory leave types.
- Leave Accrual and Carryover: Specify rules for leave accrual, unused leave carryover, and payout upon termination.
A Practical Path to Global Markets with Acumen International Employer of Record
Expanding into new markets doesn’t have to be complicated. With Acumen International’s Employer of Record solution, you can focus on growing your business while we handle the complexities of hiring, compliance, and operations. Whether you’re scaling quickly, testing new markets, or managing transitions, we make the process seamless, flexible, and stress-free.
Easy Market Entry & Exit
- Fast Entry: Launch operations in new countries within weeks—ideal for time-sensitive expansions.
- Effortless Exit: Exit markets without the financial and administrative burden of dissolving local entities.
Lean & Agile Expansion
- Market Flexibility: Enter markets with minimal investment, assess potential, and pivot quickly if needed.
- Short-Term Projects: Hire compliant local talent for temporary assignments without long-term commitments.
Operational Efficiency
- Centralised Management: Manage global teams through a single provider, ensuring consistent processes.
- HR Burden Reduction: Shift payroll, tax filing, and statutory reporting responsibilities to the EOR.
Business Continuity & Growth
- Support During Transitions: Seamlessly handle workforce shifts in mergers, acquisitions, or shutdowns.
- Scalable Infrastructure: Expand operations into uncharted markets quickly and compliantly.
Faster Time to Market
- Immediate Hiring While Setting Up: Employ talent seamlessly during the interim period before establishing a local entity.
- Complex Market Support: Efficiently manage compliance and hiring in underserved, high-risk, or remote regions.
Cost and Risk Management
- Cost Efficiency: Avoid entity setup expenses and reduce operational overheads.
- Risk Mitigation: Prevent misclassification issues, permanent establishment risks, and non-compliance penalties.
Global Mobility Support by Acumen International Global EOR
Visa and Work Permit Processing
- End-to-end support for work visa and permit applications, including document preparation and submission.
- Ensure compliance with country-specific salary thresholds and skill requirements for visa sponsorship.
- Minimise delays with expert guidance on processing timelines and approval requirements.
Dependent Visa Support
- Assist employees in securing dependent visas for family members.
- Provide guidance on eligibility, required documentation, and country-specific compliance.
- Support integration of dependents, ensuring a smooth transition.
Relocation Planning
- Help employees and families find housing, schools, and local amenities.
- Coordinate logistics for transporting personal belongings and managing travel expenses.
- Offer cultural orientation and workplace integration programmes to ease adaptation.
Cost Management
- Provide employment infrastructure to facilitate work permit applications, ensuring compliance with minimum salary thresholds, quotas, and other legal requirements.
- Streamline costs related to payroll, statutory contributions, and administrative compliance under a single, predictable framework.
Ongoing Immigration Compliance
- Monitor visa and work permit expiration dates to ensure timely renewals and avoid disruptions.
- Update employment records to reflect changes in employee roles, salaries, or job locations to maintain compliance.
- Conduct regular audits to ensure adherence to immigration requirements and labour laws across jurisdictions.
Global Payroll Calculator
The Global Payroll Calculator gives you clear insights into employment costs, tax breakdowns, and compliance requirements in over 190 countries. Whether you’re planning to hire internationally or optimise your budget, this tool helps you make informed decisions every step of the way.
- Gain visibility into total employment costs in 190+ countries.
- Streamline talent acquisition and budgeting.
- Identify the most cost-effective remote talent hubs.
1. Total Employment Cost
- Gross-to-net, net-to-gross
- Monthly & yearly costs
- Local & foreign talent
- Employer liability
- Employee taxes
- 13/14 salary accruals.
2. Full Tax Breakdown
- Social contributions
- Employer & employee split
- Personal income tax
- Allowances
- Automated tax caps
- Tax brackets
- Employee net pay
3. Cross-country Comparison
- Instant comparisons
- Customisable inputs
- Single format
- Standardised view
- Multiple countries
- 1500+ Payroll variables
4. Built-in Compliance
- Ongoing data validation
- Expert explanatory notes
- In-depth payroll taxes
- Labour & tax law compliance
- Trusted government sources
- Real-time regulation updates
10 Scenarios When You Might Need a Global Employer of Record
1. Limitations with Current Provider
Your current global employment partner isn’t delivering on compliance or support or lacks coverage in regions where you plan to expand, exposing your business to risks.
2. Contractor Compliance Concerns
You’ve hired contractors abroad but worry about misclassification risks or tax liabilities. A Global EOR can transition them into employees to protect your business.
3. Simplify Complex Overseas Operations
Managing multiple providers in different countries causes headaches. A Global EOR provides consistent, high-quality service across jurisdictions.
4. Avoid Entity Set-Up Costs
Opening legal entities abroad is costly and complex. A Global EOR helps you hire talent without the overhead of establishing operations.
5. Expand or Test New Markets
Whether testing a market or scaling operations, a Global EOR enables quick, compliant hiring without the cost or complexity of entity setup, allowing you to pivot or grow with ease.
6. Interim Hiring Solutions
Setting up a legal entity takes time. A Global EOR bridges the gap, managing employment responsibilities while your operations are established.
7. Launch Teams Faster
Need to launch global teams? A Global EOR manages permits, visas, and hiring quickly, allowing seamless operations.
8. Mitigate Global Hiring Risks
Global hiring exposes you to complex legal risks. A Global EOR ensures compliance and shields you from fines and liabilities.
9. Remote Workforce Expansion
Expanding a remote workforce globally? A Global EOR provides compliant hiring, payroll, and benefits tailored to each country.
10. Seamless Workforce Transitions
Navigating mergers, acquisitions, or shutdowns? A Global EOR ensures compliant and smooth transitions for employees during M&A and other organisational changes.
Grow Your Business with Acumen International
Acumen International supports global employers in managing the operational, legal, and administrative requirements of cross-border hiring.
Our Global Employer of Record solution enables you to engage talent in over 190+ countries without establishing a local entity, while maintaining full compliance with employment, tax, and immigration laws.
We help you move decisively in complex markets, reduce internal burden, and ensure continuity as your workforce expands.