Entity setup creates a formal legal presence in a country. This allows companies to hire employees directly, enter contracts, own assets, and conduct business. The process varies significantly in complexity, cost, and timeframe between jurisdictions.
Common Requirements
Typical setup steps include choosing an entity type, registering with companies authorities, obtaining tax identification numbers, opening bank accounts, registering for social security and employment purposes, and securing any required business licenses. Some countries require local directors or shareholders.
Timeframes and Costs
Setup can take from a few days in business-friendly jurisdictions to several months in more bureaucratic environments. Costs include government fees, professional services, minimum capital requirements, and ongoing compliance expenses. Total first-year costs often range from $10,000 to $50,000 or more.
EOR as Alternative
An Employer of Record lets companies hire in countries without setting up entities. This avoids setup costs and delays, reduces ongoing compliance burden, and provides flexibility to exit markets easily. EOR makes sense for small teams or when testing new markets.