Question 1

What is an Employer of Record (EOR)?

Accepted Answer

An Employer of Record (EOR) is a third-party company that becomes the legal employer of your remote workers in a specific country. You manage the day-to-day work and set compensation; the EOR handles all employer responsibilities: payroll, benefits, tax compliance, employment contracts, and labor law compliance. This allows you to hire full-time employees globally without establishing legal entities in each country.

Question 2

When should I use an EOR vs setting up my own entity?

Accepted Answer

Use an EOR if you are: hiring your first employee in a country, want to avoid legal complexity and ongoing compliance costs, or plan to hire fewer than 5-10 people in that country. EORs typically cost $400-$700/month per employee and offer simple, predictable pricing with zero additional administrative burden. Use a subsidiary if you are planning to hire 10+ people, want direct control, or are already established in the country. Subsidiaries take 2-3 months to set up and cost $2,000-$10,000 in legal/accounting fees, but offer lower long-term per-employee costs.

Question 3

What are the main EOR providers?

Accepted Answer

The leading EOR providers are: Deel (150+ countries, $599-$699/month), Remote (80+ countries, $599/month), Oyster (130+ countries, $599/month), Rippling (50+ countries, $600/month for EOR), and Multiplier (150+ countries, $400/month). All provide payroll, compliance, benefits, and tax handling. They differ in price, user experience, customer support quality, and specific features. Compare based on: coverage in your target countries, price, support quality, and platform usability.

Question 4

How long does it take to onboard an employee through an EOR?

Accepted Answer

Most EORs can onboard an employee in 10-21 days, depending on the country. The process typically includes: background checks (1-2 days), employment contract and tax registration (3-7 days), payroll setup and benefits enrollment (3-7 days), and system access (1-2 days). This is dramatically faster than setting up a subsidiary (2-3 months), making EOR ideal for time-sensitive hiring.

Question 5

What are the total costs of hiring through an EOR?

Accepted Answer

Total cost includes: (1) EOR fee ($400-$700/month), (2) Base salary (market rate for the country), (3) Employer contributions (social insurance, taxes, benefits—varies by country: 3% to 45% on top of salary). For example, hiring a developer earning $3,000/month in the Philippines: $3,000 salary + $450 employer contributions (15%) + $600 EOR fee = $4,050/month total. For detailed cost breakdowns by country, see our country-specific guides.

Question 6

Is using an EOR legally safe?

Accepted Answer

Yes, using an established EOR is fully legal and compliant when you work with reputable providers like Deel, Remote, Oyster, Rippling, or Multiplier. These providers are registered employers in their respective countries and handle all legal obligations. However, choose providers with proven track records in your target countries—smaller or unregistered providers carry significant risk. An EOR assumes the legal employer role, eliminating misclassification risks from contractor arrangements.

Question 7

Can I switch EOR providers or set up a subsidiary later?

Accepted Answer

Yes. If you decide to switch EORs, the employee transitions to a new provider within days—no job loss. If you want to set up a local subsidiary, the employee can transition from the EOR to your subsidiary (the EOR can facilitate this). If you want to terminate, you can do so following the country's notice and severance requirements. An EOR provides flexibility to change your employment strategy as your business grows.

Employer of Record (EOR): Hire Globally in 27 Countries

Asia Pacific

Philippines

India

Vietnam

Singapore

Japan

South Korea

China

Hong Kong

Thailand

Latin America

Mexico

Brazil

Colombia

Costa Rica

Europe

Ukraine

United Kingdom

Germany

Netherlands

Spain

Switzerland

Croatia

France

Ireland

Other Regions

Canada

Australia

United Arab Emirates

New Zealand

United States of America

EOR Frequently Asked Questions

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