{"id":13136,"date":"2024-02-23T13:42:59","date_gmt":"2024-02-23T16:42:59","guid":{"rendered":"https:\/\/europortage.com\/?p=13136"},"modified":"2025-12-02T11:21:18","modified_gmt":"2025-12-02T14:21:18","slug":"employer-of-record-vs-entity-setup-vs-engaging-contractors","status":"publish","type":"post","link":"https:\/\/europortage.com\/pt-br\/employer-of-record-vs-entity-setup-vs-engaging-contractors\/","title":{"rendered":"Employer of record vs. Entity setup vs. Engaging contractors"},"content":{"rendered":"\t\t<div data-elementor-type=\"wp-post\" data-elementor-id=\"13136\" class=\"elementor elementor-13136\" data-elementor-post-type=\"post\">\n\t\t\t\t<section class=\"elementor-element elementor-element-53f378c e-con-full e-flex e-con e-parent\" data-id=\"53f378c\" data-element_type=\"container\">\n\t\t<div class=\"elementor-element elementor-element-fbba421 e-con-full e-flex e-con e-child\" data-id=\"fbba421\" data-element_type=\"container\" data-settings=\"{&quot;sticky&quot;:&quot;top&quot;,&quot;sticky_parent&quot;:&quot;yes&quot;,&quot;sticky_offset&quot;:100,&quot;sticky_on&quot;:[&quot;desktop&quot;],&quot;sticky_effects_offset&quot;:0}\">\n\t\t\t\t<div class=\"elementor-element elementor-element-58c4b3e elementor-widget elementor-widget-heading\" data-id=\"58c4b3e\" data-element_type=\"widget\" data-widget_type=\"heading.default\">\n\t\t\t\t<div class=\"elementor-widget-container\">\n\t\t\t<h6 class=\"elementor-heading-title elementor-size-default\">Employer of record vs. Entity setup vs. Engaging contractors<\/h6>\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t<div class=\"elementor-element elementor-element-afa42c1 elementor-widget-divider--view-line elementor-widget elementor-widget-divider\" data-id=\"afa42c1\" data-element_type=\"widget\" data-widget_type=\"divider.default\">\n\t\t\t\t<div class=\"elementor-widget-container\">\n\t\t\t\t\t<div class=\"elementor-divider\">\n\t\t\t<span class=\"elementor-divider-separator\">\n\t\t\t\t\t\t<\/span>\n\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t<div class=\"elementor-element elementor-element-d4dfa84 elementor-widget elementor-widget-table-of-contents\" data-id=\"d4dfa84\" data-element_type=\"widget\" data-settings=\"{&quot;headings_by_tags&quot;:[&quot;h2&quot;],&quot;exclude_headings_by_selector&quot;:[],&quot;marker_view&quot;:&quot;bullets&quot;,&quot;icon&quot;:{&quot;value&quot;:&quot;&quot;,&quot;library&quot;:&quot;&quot;},&quot;min_height&quot;:{&quot;unit&quot;:&quot;px&quot;,&quot;size&quot;:0,&quot;sizes&quot;:[]},&quot;hierarchical_view&quot;:&quot;yes&quot;,&quot;min_height_tablet&quot;:{&quot;unit&quot;:&quot;px&quot;,&quot;size&quot;:&quot;&quot;,&quot;sizes&quot;:[]},&quot;min_height_mobile&quot;:{&quot;unit&quot;:&quot;px&quot;,&quot;size&quot;:&quot;&quot;,&quot;sizes&quot;:[]}}\" data-widget_type=\"table-of-contents.default\">\n\t\t\t\t<div class=\"elementor-widget-container\">\n\t\t\t\t\t<div class=\"elementor-toc__header\">\n\t\t\t<h4 class=\"elementor-toc__header-title\">\n\t\t\t\t\t\t\t<\/h4>\n\t\t\t\t\t<\/div>\n\t\t<div id=\"elementor-toc__d4dfa84\" class=\"elementor-toc__body\">\n\t\t\t<div class=\"elementor-toc__spinner-container\">\n\t\t\t\t<i class=\"elementor-toc__spinner eicon-animation-spin eicon-loading\" aria-hidden=\"true\"><\/i>\t\t\t<\/div>\n\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t<div class=\"elementor-element elementor-element-e79ab93 elementor-widget-divider--view-line elementor-widget elementor-widget-divider\" data-id=\"e79ab93\" data-element_type=\"widget\" data-widget_type=\"divider.default\">\n\t\t\t\t<div class=\"elementor-widget-container\">\n\t\t\t\t\t<div class=\"elementor-divider\">\n\t\t\t<span class=\"elementor-divider-separator\">\n\t\t\t\t\t\t<\/span>\n\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t<div class=\"elementor-element elementor-element-0c2a6a7 elementor-shape-circle elementor-grid-4 e-grid-align-left elementor-widget elementor-widget-social-icons\" data-id=\"0c2a6a7\" data-element_type=\"widget\" data-widget_type=\"social-icons.default\">\n\t\t\t\t<div class=\"elementor-widget-container\">\n\t\t\t\t\t<div class=\"elementor-social-icons-wrapper elementor-grid\">\n\t\t\t\t\t\t\t<span class=\"elementor-grid-item\">\n\t\t\t\t\t<a class=\"elementor-icon elementor-social-icon elementor-social-icon-linkedin elementor-repeater-item-5c5c5e2\" href=\"https:\/\/www.linkedin.com\/company\/europortage\" target=\"_blank\">\n\t\t\t\t\t\t<span class=\"elementor-screen-only\">Linkedin<\/span>\n\t\t\t\t\t\t<i class=\"fab fa-linkedin\"><\/i>\t\t\t\t\t<\/a>\n\t\t\t\t<\/span>\n\t\t\t\t\t\t\t<span class=\"elementor-grid-item\">\n\t\t\t\t\t<a class=\"elementor-icon elementor-social-icon elementor-social-icon-icomoon-the7-font-the7-mail-05 elementor-repeater-item-1a6d7d6\" href=\"https:\/\/europortage.com\/contact-us\/\" 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class=\"elementor-heading-title elementor-size-default\">Want to onboard an employee in Brazil or Mexico today?<\/h6>\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t<div class=\"elementor-element elementor-element-d1d6919 elementor-align-center elementor-mobile-align-center elementor-widget elementor-widget-button\" data-id=\"d1d6919\" data-element_type=\"widget\" data-widget_type=\"button.default\">\n\t\t\t\t<div class=\"elementor-widget-container\">\n\t\t\t\t\t<div class=\"elementor-button-wrapper\">\n\t\t\t<a class=\"elementor-button elementor-button-link elementor-size-sm\" href=\"https:\/\/europortage.com\/contact-us\/\">\n\t\t\t\t\t\t<span class=\"elementor-button-content-wrapper\">\n\t\t\t\t\t\t<span class=\"elementor-button-icon\">\n\t\t\t\t<svg xmlns=\"http:\/\/www.w3.org\/2000\/svg\" xmlns:xlink=\"http:\/\/www.w3.org\/1999\/xlink\" width=\"100\" height=\"107\" viewBox=\"0 0 100 107\" fill=\"none\"><rect width=\"100\" height=\"107\" fill=\"url(#pattern0)\"><\/rect><defs><pattern 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class=\"elementor-button-text\">Get started<\/span>\n\t\t\t\t\t<\/span>\n\t\t\t\t\t<\/a>\n\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t<div class=\"elementor-element elementor-element-72169a1 e-con-full e-flex e-con e-child\" data-id=\"72169a1\" data-element_type=\"container\">\n\t\t\t\t<div class=\"elementor-element elementor-element-042d134 elementor-widget elementor-widget-text-editor\" data-id=\"042d134\" data-element_type=\"widget\" data-widget_type=\"text-editor.default\">\n\t\t\t\t<div class=\"elementor-widget-container\">\n\t\t\t\t\t\t\t<p>The rise of remote work model has transformed the way we work and has also brought a new set of recruitment opportunities for businesses. Companies are not longer hiring within their national borders but now tapping into global market to find and onboard the best global talent.<\/p><p>Global hiring has become an increasingly attractive option enabling employers to attract and retain top talents from anywhere in the world. However, this does not come without risk and complexity. To compliantly hire internationally, businesses have three different ways to get there and must assess each one of these approaches. \u00a0<\/p><p>These three approaches are setting up a legal entity in the chosen country, engaging contractors or using an employer of record (EOR).<\/p><p>The following article will help you understand what these three approaches &#8211; Employer of record vs. Entity setup vs. Engaging contractors &#8211; are, and which solution will best match your strategy \u2b07\ufe0f<\/p>\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t<div class=\"elementor-element elementor-element-4600064 elementor-widget elementor-widget-heading\" data-id=\"4600064\" data-element_type=\"widget\" data-widget_type=\"heading.default\">\n\t\t\t\t<div class=\"elementor-widget-container\">\n\t\t\t<h3 class=\"elementor-heading-title elementor-size-default\">Key takeaways<\/h3>\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t<div class=\"elementor-element elementor-element-fd66214 elementor-widget elementor-widget-text-editor\" data-id=\"fd66214\" data-element_type=\"widget\" data-widget_type=\"text-editor.default\">\n\t\t\t\t<div class=\"elementor-widget-container\">\n\t\t\t\t\t\t\t<p>\u2714\ufe0f If a business is looking to establish a long-tem presence in a market, then opening a local entity is the best solution.<\/p><p>\u2714\ufe0f When a business is looking to hire someone for a short-term project, then engaging a contractor would be the winning strategy.<\/p><p>\u2714\ufe0f If a business wants to quickly onboard employees or contractors in a new market, then using an EOR can best fit your needs.<\/p>\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t<div class=\"elementor-element elementor-element-9993a92 elementor-widget elementor-widget-heading\" data-id=\"9993a92\" data-element_type=\"widget\" data-widget_type=\"heading.default\">\n\t\t\t\t<div class=\"elementor-widget-container\">\n\t\t\t<h2 class=\"elementor-heading-title elementor-size-default\">Setting up an entity<\/h2>\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t<div class=\"elementor-element elementor-element-0254583 elementor-widget elementor-widget-text-editor\" data-id=\"0254583\" data-element_type=\"widget\" data-widget_type=\"text-editor.default\">\n\t\t\t\t<div class=\"elementor-widget-container\">\n\t\t\t\t\t\t\t<p>Setting up an entity is the traditional solution when a business wants to hire internationally. Establish a legal entity in a specific country will allow your business to operate legally in the country, hire, pay and manage your talents there.<\/p>\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t<div class=\"elementor-element elementor-element-e3ede99 elementor-widget elementor-widget-heading\" data-id=\"e3ede99\" data-element_type=\"widget\" data-widget_type=\"heading.default\">\n\t\t\t\t<div class=\"elementor-widget-container\">\n\t\t\t<h3 class=\"elementor-heading-title elementor-size-default\">Pros <\/h3>\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t<div class=\"elementor-element elementor-element-3e74dc3 e-flex e-con-boxed e-con e-child\" data-id=\"3e74dc3\" data-element_type=\"container\">\n\t\t\t\t\t<div class=\"e-con-inner\">\n\t\t\t\t<div class=\"elementor-element elementor-element-d26c575 elementor-widget elementor-widget-image\" data-id=\"d26c575\" data-element_type=\"widget\" data-widget_type=\"image.default\">\n\t\t\t\t<div class=\"elementor-widget-container\">\n\t\t\t\t\t\t\t\t\t\t\t\t\t<img decoding=\"async\" src=\"https:\/\/europortage.com\/wp-content\/uploads\/elementor\/thumbs\/Group-133-4-rfobvezdg4n521cqscfzyoadr34t2ykzl87a4wbksk.png\" title=\"Group 133 (4)\" alt=\"Group 133 (4)\" loading=\"lazy\" \/>\t\t\t\t\t\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t<div class=\"elementor-element elementor-element-eade9d8 elementor-widget elementor-widget-text-editor\" data-id=\"eade9d8\" data-element_type=\"widget\" data-widget_type=\"text-editor.default\">\n\t\t\t\t<div class=\"elementor-widget-container\">\n\t\t\t\t\t\t\t<p><strong>Maintain control over operations:<\/strong> by setting up an entity, you gain full control over your operations as well as align recrutment and engagement strategies with your corporation culture.\u00a0<\/p>\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t<div class=\"elementor-element elementor-element-1c02528 e-flex e-con-boxed e-con e-child\" data-id=\"1c02528\" data-element_type=\"container\">\n\t\t\t\t\t<div class=\"e-con-inner\">\n\t\t\t\t<div class=\"elementor-element elementor-element-274d2d5 elementor-widget elementor-widget-image\" data-id=\"274d2d5\" data-element_type=\"widget\" data-widget_type=\"image.default\">\n\t\t\t\t<div class=\"elementor-widget-container\">\n\t\t\t\t\t\t\t\t\t\t\t\t\t<img decoding=\"async\" src=\"https:\/\/europortage.com\/wp-content\/uploads\/elementor\/thumbs\/Group-133-4-rfobvezdg4n521cqscfzyoadr34t2ykzl87a4wbksk.png\" title=\"Group 133 (4)\" alt=\"Group 133 (4)\" loading=\"lazy\" \/>\t\t\t\t\t\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t<div class=\"elementor-element elementor-element-6677f49 elementor-widget elementor-widget-text-editor\" data-id=\"6677f49\" data-element_type=\"widget\" data-widget_type=\"text-editor.default\">\n\t\t\t\t<div class=\"elementor-widget-container\">\n\t\t\t\t\t\t\t<p><strong>Increase visibility in a new market:<\/strong> If the market is one of your recruitment hubspot, then, creating your entity could help you increase visibility and recruit the top talents your need.\u00a0<\/p>\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t<div class=\"elementor-element elementor-element-7953e03 e-flex e-con-boxed e-con e-child\" data-id=\"7953e03\" data-element_type=\"container\">\n\t\t\t\t\t<div class=\"e-con-inner\">\n\t\t\t\t<div class=\"elementor-element elementor-element-b9020cd elementor-widget elementor-widget-image\" data-id=\"b9020cd\" data-element_type=\"widget\" data-widget_type=\"image.default\">\n\t\t\t\t<div class=\"elementor-widget-container\">\n\t\t\t\t\t\t\t\t\t\t\t\t\t<img decoding=\"async\" src=\"https:\/\/europortage.com\/wp-content\/uploads\/elementor\/thumbs\/Group-133-4-rfobvezdg4n521cqscfzyoadr34t2ykzl87a4wbksk.png\" title=\"Group 133 (4)\" alt=\"Group 133 (4)\" loading=\"lazy\" \/>\t\t\t\t\t\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t<div class=\"elementor-element elementor-element-1933dbb elementor-widget elementor-widget-text-editor\" data-id=\"1933dbb\" data-element_type=\"widget\" data-widget_type=\"text-editor.default\">\n\t\t\t\t<div class=\"elementor-widget-container\">\n\t\t\t\t\t\t\t<p><strong>Have legal clarity:<\/strong> Setting up an entity will force you to increase your local market knowledge and be able to have full control and understanding of the local laws.\u00a0<\/p>\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t<div class=\"elementor-element elementor-element-d78b453 elementor-widget elementor-widget-heading\" data-id=\"d78b453\" data-element_type=\"widget\" data-widget_type=\"heading.default\">\n\t\t\t\t<div class=\"elementor-widget-container\">\n\t\t\t<h3 class=\"elementor-heading-title elementor-size-default\">Cons <\/h3>\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t<div class=\"elementor-element elementor-element-069c0b4 elementor-widget elementor-widget-text-editor\" data-id=\"069c0b4\" data-element_type=\"widget\" data-widget_type=\"text-editor.default\">\n\t\t\t\t<div class=\"elementor-widget-container\">\n\t\t\t\t\t\t\t<ul><li><strong>Consume time and resources:<\/strong> Registering a company can be a long and costly process. And, even after the initial setup, there\u2019s the expense of managing the entity.\u00a0<\/li><\/ul><ul><li><strong>Reduce flexibility:<\/strong> A local entity doesn\u2019t allow much flexibility mainly because you only only be able to hire in the specific country where the entity is incorporated.\u00a0<\/li><\/ul><ul><li><strong>Legal considerations: <\/strong>Hiring the employees with your own entity means hat you are the legal employer and then, bear all the risks.\u00a0<\/li><\/ul>\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t<div class=\"elementor-element elementor-element-d2aed47 elementor-widget elementor-widget-heading\" data-id=\"d2aed47\" data-element_type=\"widget\" data-widget_type=\"heading.default\">\n\t\t\t\t<div class=\"elementor-widget-container\">\n\t\t\t<h2 class=\"elementor-heading-title elementor-size-default\">Engaging a contractor <\/h2>\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t<div class=\"elementor-element elementor-element-a95d349 elementor-widget elementor-widget-text-editor\" data-id=\"a95d349\" data-element_type=\"widget\" data-widget_type=\"text-editor.default\">\n\t\t\t\t<div class=\"elementor-widget-container\">\n\t\t\t\t\t\t\t<p>This solution might seem a good fit to reduce the cost of setting up an entity or hiring a full-time employee. Engaging a contractor can be a winning strategy in some cases and will depend of your business strategy and goals. For instance, it <span style=\"word-spacing: normal;\">is a great solution when you need a talent for a short-term project.\u00a0<\/span><\/p>\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t<div class=\"elementor-element elementor-element-473bab3 elementor-widget elementor-widget-heading\" data-id=\"473bab3\" data-element_type=\"widget\" data-widget_type=\"heading.default\">\n\t\t\t\t<div class=\"elementor-widget-container\">\n\t\t\t<h3 class=\"elementor-heading-title elementor-size-default\">Pros<\/h3>\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t<div class=\"elementor-element elementor-element-c805f78 e-flex e-con-boxed e-con e-child\" data-id=\"c805f78\" data-element_type=\"container\">\n\t\t\t\t\t<div class=\"e-con-inner\">\n\t\t\t\t<div class=\"elementor-element elementor-element-e2e427e elementor-widget elementor-widget-image\" data-id=\"e2e427e\" data-element_type=\"widget\" data-widget_type=\"image.default\">\n\t\t\t\t<div class=\"elementor-widget-container\">\n\t\t\t\t\t\t\t\t\t\t\t\t\t<img decoding=\"async\" src=\"https:\/\/europortage.com\/wp-content\/uploads\/elementor\/thumbs\/Group-133-4-rfobvezdg4n521cqscfzyoadr34t2ykzl87a4wbksk.png\" title=\"Group 133 (4)\" alt=\"Group 133 (4)\" loading=\"lazy\" \/>\t\t\t\t\t\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t<div class=\"elementor-element elementor-element-73e09cb elementor-widget elementor-widget-text-editor\" data-id=\"73e09cb\" data-element_type=\"widget\" data-widget_type=\"text-editor.default\">\n\t\t\t\t<div class=\"elementor-widget-container\">\n\t\t\t\t\t\t\t<p><strong>Gain flexibility: <\/strong>The main pro of engaging a contractor is the flexibility it grants. It enables your business to test the market before setting up a legal entity or hiring an employee.<\/p>\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t<div class=\"elementor-element elementor-element-9995a8a e-flex e-con-boxed e-con e-child\" data-id=\"9995a8a\" data-element_type=\"container\">\n\t\t\t\t\t<div class=\"e-con-inner\">\n\t\t\t\t<div class=\"elementor-element elementor-element-0d61499 elementor-widget elementor-widget-image\" data-id=\"0d61499\" data-element_type=\"widget\" data-widget_type=\"image.default\">\n\t\t\t\t<div class=\"elementor-widget-container\">\n\t\t\t\t\t\t\t\t\t\t\t\t\t<img decoding=\"async\" src=\"https:\/\/europortage.com\/wp-content\/uploads\/elementor\/thumbs\/Group-133-4-rfobvezdg4n521cqscfzyoadr34t2ykzl87a4wbksk.png\" title=\"Group 133 (4)\" alt=\"Group 133 (4)\" loading=\"lazy\" \/>\t\t\t\t\t\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t<div class=\"elementor-element elementor-element-5f85959 elementor-widget elementor-widget-text-editor\" data-id=\"5f85959\" data-element_type=\"widget\" data-widget_type=\"text-editor.default\">\n\t\t\t\t<div class=\"elementor-widget-container\">\n\t\t\t\t\t\t\t<p><strong>Short-term project: <\/strong>If you have changing work requirement or a short-term project, then, engaging an independant contractor would be the best solution for your business.\u00a0<\/p>\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t<div class=\"elementor-element elementor-element-8f200f1 elementor-widget elementor-widget-heading\" data-id=\"8f200f1\" data-element_type=\"widget\" data-widget_type=\"heading.default\">\n\t\t\t\t<div class=\"elementor-widget-container\">\n\t\t\t<h3 class=\"elementor-heading-title elementor-size-default\">Cons<\/h3>\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t<div class=\"elementor-element elementor-element-8511089 elementor-widget elementor-widget-text-editor\" data-id=\"8511089\" data-element_type=\"widget\" data-widget_type=\"text-editor.default\">\n\t\t\t\t<div class=\"elementor-widget-container\">\n\t\t\t\t\t\t\t<ul><li><strong>Misclassification Risks:<\/strong> The major risk of hiring independent contractors is the misclassification risk. In many countries, the line between employee and contractors are blurry and there are high risks to misclassify your talent. Finance and legal penalties are quite common, even more in Latin America.<\/li><\/ul><ul><li><strong>Less control:<\/strong> Independent contractors have more work autonomy than employees. They decide when, where and how best to work and accomplish tasks.<\/li><\/ul>\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t<div class=\"elementor-element elementor-element-9e6fcd6 elementor-widget elementor-widget-heading\" data-id=\"9e6fcd6\" data-element_type=\"widget\" data-widget_type=\"heading.default\">\n\t\t\t\t<div class=\"elementor-widget-container\">\n\t\t\t<h2 class=\"elementor-heading-title elementor-size-default\">Using an Employer of record (EOR)<\/h2>\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t<div class=\"elementor-element elementor-element-6d0ed78 elementor-widget elementor-widget-text-editor\" data-id=\"6d0ed78\" data-element_type=\"widget\" data-widget_type=\"text-editor.default\">\n\t\t\t\t<div class=\"elementor-widget-container\">\n\t\t\t\t\t\t\t<p>Partner with an employer of record (EOR) is quite a game changer and can help you hire globally. The EOR will be the legal employer, which means they will handle employment contracts, onboarding process, compliance, benefits, payroll and more.<\/p>\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t<div class=\"elementor-element elementor-element-25e0990 elementor-widget elementor-widget-heading\" data-id=\"25e0990\" data-element_type=\"widget\" data-widget_type=\"heading.default\">\n\t\t\t\t<div class=\"elementor-widget-container\">\n\t\t\t<h3 class=\"elementor-heading-title elementor-size-default\">Pros<\/h3>\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t<div class=\"elementor-element elementor-element-734bd02 e-flex e-con-boxed e-con e-child\" data-id=\"734bd02\" data-element_type=\"container\">\n\t\t\t\t\t<div class=\"e-con-inner\">\n\t\t\t\t<div class=\"elementor-element elementor-element-33bb50c elementor-widget elementor-widget-image\" data-id=\"33bb50c\" data-element_type=\"widget\" data-widget_type=\"image.default\">\n\t\t\t\t<div class=\"elementor-widget-container\">\n\t\t\t\t\t\t\t\t\t\t\t\t\t<img decoding=\"async\" src=\"https:\/\/europortage.com\/wp-content\/uploads\/elementor\/thumbs\/Group-133-4-rfobvezdg4n521cqscfzyoadr34t2ykzl87a4wbksk.png\" title=\"Group 133 (4)\" alt=\"Group 133 (4)\" loading=\"lazy\" \/>\t\t\t\t\t\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t<div class=\"elementor-element elementor-element-8838b59 elementor-widget elementor-widget-text-editor\" data-id=\"8838b59\" data-element_type=\"widget\" data-widget_type=\"text-editor.default\">\n\t\t\t\t<div class=\"elementor-widget-container\">\n\t\t\t\t\t\t\t<p><strong>Quickly expand globally : <\/strong>Using an employer of reord service will help you to quickly and easily hire in various market. It allows you to broader your talent pool and not be limited to local talent.\u00a0<\/p>\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t<div class=\"elementor-element elementor-element-76c2fb4 e-flex e-con-boxed e-con e-child\" data-id=\"76c2fb4\" data-element_type=\"container\">\n\t\t\t\t\t<div class=\"e-con-inner\">\n\t\t\t\t<div class=\"elementor-element elementor-element-28d6192 elementor-widget elementor-widget-image\" data-id=\"28d6192\" data-element_type=\"widget\" data-widget_type=\"image.default\">\n\t\t\t\t<div class=\"elementor-widget-container\">\n\t\t\t\t\t\t\t\t\t\t\t\t\t<img decoding=\"async\" src=\"https:\/\/europortage.com\/wp-content\/uploads\/elementor\/thumbs\/Group-133-4-rfobvezdg4n521cqscfzyoadr34t2ykzl87a4wbksk.png\" title=\"Group 133 (4)\" alt=\"Group 133 (4)\" loading=\"lazy\" \/>\t\t\t\t\t\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t<div class=\"elementor-element elementor-element-08402aa elementor-widget elementor-widget-text-editor\" data-id=\"08402aa\" data-element_type=\"widget\" data-widget_type=\"text-editor.default\">\n\t\t\t\t<div class=\"elementor-widget-container\">\n\t\t\t\t\t\t\t<p><strong>Team of experts : <\/strong>No matter what is your expansion objective, going global requires a strong local knowledge. EOR partner usually has a glocal expertise to help you expand your operation.\u00a0<\/p>\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t<div class=\"elementor-element elementor-element-5aa2815 e-flex e-con-boxed e-con e-child\" data-id=\"5aa2815\" data-element_type=\"container\">\n\t\t\t\t\t<div class=\"e-con-inner\">\n\t\t\t\t<div class=\"elementor-element elementor-element-53603b5 elementor-widget elementor-widget-image\" data-id=\"53603b5\" data-element_type=\"widget\" data-widget_type=\"image.default\">\n\t\t\t\t<div class=\"elementor-widget-container\">\n\t\t\t\t\t\t\t\t\t\t\t\t\t<img decoding=\"async\" src=\"https:\/\/europortage.com\/wp-content\/uploads\/elementor\/thumbs\/Group-133-4-rfobvezdg4n521cqscfzyoadr34t2ykzl87a4wbksk.png\" title=\"Group 133 (4)\" alt=\"Group 133 (4)\" loading=\"lazy\" \/>\t\t\t\t\t\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t<div class=\"elementor-element elementor-element-deab65a elementor-widget elementor-widget-text-editor\" data-id=\"deab65a\" data-element_type=\"widget\" data-widget_type=\"text-editor.default\">\n\t\t\t\t<div class=\"elementor-widget-container\">\n\t\t\t\t\t\t\t<p><strong>Streamlined solution : <\/strong>EOR offers a streamlined solution to hire, pay and manage a global workforce. They handle the administrative and HR burdens which allow you to focus on your core business.<\/p>\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t<div class=\"elementor-element elementor-element-9dfc49d elementor-widget elementor-widget-heading\" data-id=\"9dfc49d\" data-element_type=\"widget\" data-widget_type=\"heading.default\">\n\t\t\t\t<div class=\"elementor-widget-container\">\n\t\t\t<h3 class=\"elementor-heading-title elementor-size-default\">Cons<\/h3>\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t<div class=\"elementor-element elementor-element-09cb3ac elementor-widget elementor-widget-text-editor\" data-id=\"09cb3ac\" data-element_type=\"widget\" data-widget_type=\"text-editor.default\">\n\t\t\t\t<div class=\"elementor-widget-container\">\n\t\t\t\t\t\t\t<ul><li><strong>Less control over workforce operations:<\/strong> As the EOR will be the legal employer, your business won&#8217;t gain full control over workforce operations.<\/li><\/ul>\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t<div class=\"elementor-element elementor-element-e454546 elementor-widget elementor-widget-heading\" data-id=\"e454546\" data-element_type=\"widget\" data-widget_type=\"heading.default\">\n\t\t\t\t<div class=\"elementor-widget-container\">\n\t\t\t<h2 class=\"elementor-heading-title elementor-size-default\">What's the best strategy for your business ?<\/h2>\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t<div class=\"elementor-element elementor-element-5ecc2a8 elementor-widget elementor-widget-menu-anchor\" data-id=\"5ecc2a8\" data-element_type=\"widget\" data-widget_type=\"menu-anchor.default\">\n\t\t\t\t<div class=\"elementor-widget-container\">\n\t\t\t\t\t<div class=\"elementor-menu-anchor\" id=\"hiringglobaloptions\"><\/div>\n\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t<div class=\"elementor-element elementor-element-6899180 elementor-widget elementor-widget-text-editor\" data-id=\"6899180\" data-element_type=\"widget\" data-widget_type=\"text-editor.default\">\n\t\t\t\t<div class=\"elementor-widget-container\">\n\t\t\t\t\t\t\t<p>So what\u2019s the best solution between open an entity, engage a contractor or work with an EOR ? The answer is: it depends!<\/p><p>There is no one unique approach. The solution you choose will depends on your business needs and strategies, your growth plans, recruitment goals, internal resources, etc\u2026<\/p><p>The most important is to understand the options you have and to choose the right solution for your business. Here is some questions you need to assess before picking one option.<\/p>\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t<div class=\"elementor-element elementor-element-ff040a0 elementor-widget elementor-widget-heading\" data-id=\"ff040a0\" data-element_type=\"widget\" data-widget_type=\"heading.default\">\n\t\t\t\t<div class=\"elementor-widget-container\">\n\t\t\t<h3 class=\"elementor-heading-title elementor-size-default\">How much are you ready to invest ?<\/h3>\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t<div class=\"elementor-element elementor-element-aeee0a2 elementor-widget elementor-widget-text-editor\" data-id=\"aeee0a2\" data-element_type=\"widget\" data-widget_type=\"text-editor.default\">\n\t\t\t\t<div class=\"elementor-widget-container\">\n\t\t\t\t\t\t\t<p>Each solution will have a cost, of course, but some more than other. For instance, opening your own subsidiary will involve higher upfront costs than using an EOR or engaging a contractor.<\/p><p>Indeed, setting up an entity requires a hefty investment at the registration. After the initial set-up, there will be the cost of entity management and ongoing support.<\/p><p>On the other side, EOR requires a lesser investment of resources, time and money. The cost is usually consistent, and you\u2019ll not have to worry about the cost of a local infrastructure.<\/p><p>Engaging a contractor would be the less costly solution as soon as you do not misclassify the talent you work with.<\/p>\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t<div class=\"elementor-element elementor-element-22f6b4b elementor-widget elementor-widget-text-editor\" data-id=\"22f6b4b\" data-element_type=\"widget\" data-widget_type=\"text-editor.default\">\n\t\t\t\t<div class=\"elementor-widget-container\">\n\t\t\t\t\t\t\t<p><strong>Our advice:<\/strong> You may start by engaging a contractor or hiring full-time employees with an EOR to switch later on to employing them via your own entity. Do not forget that some of these solutions can be complementary.<\/p>\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t<div class=\"elementor-element elementor-element-16b8a98 elementor-widget elementor-widget-heading\" data-id=\"16b8a98\" data-element_type=\"widget\" data-widget_type=\"heading.default\">\n\t\t\t\t<div class=\"elementor-widget-container\">\n\t\t\t<h3 class=\"elementor-heading-title elementor-size-default\">Does your internal team have enough local market knowledge ?<\/h3>\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t<div class=\"elementor-element elementor-element-0e9a293 elementor-widget elementor-widget-text-editor\" data-id=\"0e9a293\" data-element_type=\"widget\" data-widget_type=\"text-editor.default\">\n\t\t\t\t<div class=\"elementor-widget-container\">\n\t\t\t\t\t\t\t<p>Regardless of whether you hire employees via your own entity, via an EOR or engage a contractor, understanding local employment laws and being compliant with them is critical.<\/p><p>If you hire employees via your own structure, you\u2019ll be handling employment contracts, mandatory benefits, taxes, and payroll. In practice, this means that you\u2019ll have to hire your own team to comply with your legal obligations as the employer. The compliance risks will be fully supported by your own entity which can be tricky at first but will give you more control.<\/p><p>With an Employer of record partner, you will have a team of local experts to help you navigate local laws. In addition, the compliance obligations are outsourced to your EOR partner as it is the legal employer. Then, they\u2019ll always ensure that you\u2019re compliant with local labor laws.<\/p><p>Engaging a contractor does not force you to understand labor laws however you must verify that there is no misclassification risks.<\/p>\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t<div class=\"elementor-element elementor-element-7bcecbe elementor-widget elementor-widget-text-editor\" data-id=\"7bcecbe\" data-element_type=\"widget\" data-widget_type=\"text-editor.default\">\n\t\t\t\t<div class=\"elementor-widget-container\">\n\t\t\t\t\t\t\t<p><strong>Our advice:<\/strong> Before opening up your own company or choosing your EOR partner, make sure the local experts who will supports your business have a strong knowledge of the local laws. If engaging a contractor is your goal, then make sure there is no misclassification risks.\u00a0<\/p>\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t<div class=\"elementor-element elementor-element-331f268 elementor-widget elementor-widget-heading\" data-id=\"331f268\" data-element_type=\"widget\" data-widget_type=\"heading.default\">\n\t\t\t\t<div class=\"elementor-widget-container\">\n\t\t\t<h3 class=\"elementor-heading-title elementor-size-default\">How quickly do you want to operate ?<\/h3>\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t<div class=\"elementor-element elementor-element-0ce9840 elementor-widget elementor-widget-text-editor\" data-id=\"0ce9840\" data-element_type=\"widget\" data-widget_type=\"text-editor.default\">\n\t\t\t\t<div class=\"elementor-widget-container\">\n\t\t\t\t\t\t\t<p>An entity does not allow much a rapid and quick market entry. It generally takes month to create and run your entity. It generally takes several months to start a business in a country and does not enable fast scaling.<\/p><p>On the other hand, EOR services allows you to hire your employees quickly. For instance, in Brazil, it takes you 5 days to hire employees. If you have found a great candidate in another country, there is few chances of waiting the opening of your local entity.<\/p><p>Engaging a contractor is the best solution in terms of scalability. It allows you to start working in one day, as soon as the contract is signed.<\/p>\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t<div class=\"elementor-element elementor-element-147c1e2 elementor-widget elementor-widget-heading\" data-id=\"147c1e2\" data-element_type=\"widget\" data-widget_type=\"heading.default\">\n\t\t\t\t<div class=\"elementor-widget-container\">\n\t\t\t<h3 class=\"elementor-heading-title elementor-size-default\">How much time will you operate in the country ?<\/h3>\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t<div class=\"elementor-element elementor-element-f1da740 elementor-widget elementor-widget-text-editor\" data-id=\"f1da740\" data-element_type=\"widget\" data-widget_type=\"text-editor.default\">\n\t\t\t\t<div class=\"elementor-widget-container\">\n\t\t\t\t\t\t\t<p>Are you only looking to hire your candidate\/engage a contractor in the region or are you looking to expand your business and set up operations in the said country? What is your level of commitment to the said market ?<\/p><p>The strategy will mainly differs depending on your expansion goal. While the setup of a legal entity will signal your objective to develop your business in the region, using an EOR to hire a candidate will not demonstrate your will to establish a long-term presence in the region.<\/p><p>An EOR will allow you to hire your full-time employee. It can also be used as a stop-gap in the process of setting up the entity.<\/p>\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t<div class=\"elementor-element elementor-element-6367213 elementor-widget elementor-widget-heading\" data-id=\"6367213\" data-element_type=\"widget\" data-widget_type=\"heading.default\">\n\t\t\t\t<div class=\"elementor-widget-container\">\n\t\t\t<h3 class=\"elementor-heading-title elementor-size-default\">How much control do you want to have?<\/h3>\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t<div class=\"elementor-element elementor-element-c73954e elementor-widget elementor-widget-text-editor\" data-id=\"c73954e\" data-element_type=\"widget\" data-widget_type=\"text-editor.default\">\n\t\t\t\t<div class=\"elementor-widget-container\">\n\t\t\t\t\t\t\t<p>By setting up an entity, it means that workforce operations are completely within your control. Therefore, you can align all internal process as recruitment, onboarding and engaging strategy with your corporate culture. \u00a0It allows you to gain full control on attractivity and retention but does not come at a cost. Indeed, it requires a investment in HR resources and a good knowledge of the local culture.<\/p><p>On the other hand, hiring with an EOR facilitate global hiring and compliance. Depending on your partner, employee experience would be different, and you should make sure your partner focuses on this feature as it has direct consequences on retention. Make sure you <a href=\"https:\/\/europortage.com\/employee-experience-using-an-eor\/\">choose the right EOR partner to ensure a good employee experience<\/a>.<\/p><p>With a contractor, the level of control will be lower.\u00a0 You&#8217;ll gain in flexibility what you loose in control over workforce operations.\u00a0<\/p>\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t<div class=\"elementor-element elementor-element-20d6310 elementor-widget elementor-widget-heading\" data-id=\"20d6310\" data-element_type=\"widget\" data-widget_type=\"heading.default\">\n\t\t\t\t<div class=\"elementor-widget-container\">\n\t\t\t<h3 class=\"elementor-heading-title elementor-size-default\">What is the level of flexibility and scalability you require ?<\/h3>\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t<div class=\"elementor-element elementor-element-2d64ea0 elementor-widget elementor-widget-text-editor\" data-id=\"2d64ea0\" data-element_type=\"widget\" data-widget_type=\"text-editor.default\">\n\t\t\t\t<div class=\"elementor-widget-container\">\n\t\t\t\t\t\t\t<p>The level of flexibility and scalability of an entity is not much as you will only be able to hire in the country you incorporated your business and you\u2019ll need a team of lawyers and accountants to run your business.<\/p><p>On the contrary, EOR offers maximum hiring flexibility as well as engaging a contractor. You can hire across borders right away and try new markets \u00a0Also, the level of bureaucracy is lower than establishing an entity.<\/p>\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t<div class=\"elementor-element elementor-element-e70b00d elementor-widget elementor-widget-spacer\" data-id=\"e70b00d\" data-element_type=\"widget\" data-widget_type=\"spacer.default\">\n\t\t\t\t<div class=\"elementor-widget-container\">\n\t\t\t\t\t<div class=\"elementor-spacer\">\n\t\t\t<div class=\"elementor-spacer-inner\"><\/div>\n\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t<div class=\"elementor-element elementor-element-564cafa e-flex e-con-boxed e-con e-child\" data-id=\"564cafa\" data-element_type=\"container\" data-settings=\"{&quot;background_background&quot;:&quot;classic&quot;}\">\n\t\t\t\t\t<div class=\"e-con-inner\">\n\t\t\t\t<div class=\"elementor-element elementor-element-aaf1015 elementor-widget elementor-widget-heading\" data-id=\"aaf1015\" data-element_type=\"widget\" data-widget_type=\"heading.default\">\n\t\t\t\t<div class=\"elementor-widget-container\">\n\t\t\t<h2 class=\"elementor-heading-title elementor-size-default\">EOR or entity, you can do it all with Europortage<\/h2>\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t<div class=\"elementor-element elementor-element-d90a4a4 elementor-widget elementor-widget-spacer\" data-id=\"d90a4a4\" data-element_type=\"widget\" data-widget_type=\"spacer.default\">\n\t\t\t\t<div class=\"elementor-widget-container\">\n\t\t\t\t\t<div class=\"elementor-spacer\">\n\t\t\t<div class=\"elementor-spacer-inner\"><\/div>\n\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t<div class=\"elementor-element elementor-element-10ed3ec elementor-widget elementor-widget-text-editor\" data-id=\"10ed3ec\" data-element_type=\"widget\" data-widget_type=\"text-editor.default\">\n\t\t\t\t<div class=\"elementor-widget-container\">\n\t\t\t\t\t\t\t<p>Settin up an entity of hiring a global team is complex especially when it comes to compliance. That\u2019s why we recommend working with a direct and local partner like <a href=\"https:\/\/europortage.com\/\">Europortage<\/a>.<br \/>Our team of local experts is on hand to support you throughout the entire employee lifecycle, including time-off management. We can give you clear advice on business incorporation and global hiring, in addition to handling employment contracts, payroll, and benefits. That way, you can focus on growing a world-class team and business.<br \/>Get in touch to find out more and start hiring top talent in Brazil and Mexico!<\/p>\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t<div class=\"elementor-element elementor-element-2fde3fc elementor-widget elementor-widget-spacer\" data-id=\"2fde3fc\" data-element_type=\"widget\" data-widget_type=\"spacer.default\">\n\t\t\t\t<div class=\"elementor-widget-container\">\n\t\t\t\t\t<div class=\"elementor-spacer\">\n\t\t\t<div class=\"elementor-spacer-inner\"><\/div>\n\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t<div class=\"elementor-element elementor-element-5f825cc elementor-align-center elementor-mobile-align-center elementor-widget elementor-widget-button\" data-id=\"5f825cc\" data-element_type=\"widget\" data-widget_type=\"button.default\">\n\t\t\t\t<div class=\"elementor-widget-container\">\n\t\t\t\t\t<div class=\"elementor-button-wrapper\">\n\t\t\t<a class=\"elementor-button elementor-button-link elementor-size-sm\" href=\"https:\/\/europortage.com\/contact-us\/\">\n\t\t\t\t\t\t<span class=\"elementor-button-content-wrapper\">\n\t\t\t\t\t\t<span class=\"elementor-button-icon\">\n\t\t\t\t<svg xmlns=\"http:\/\/www.w3.org\/2000\/svg\" xmlns:xlink=\"http:\/\/www.w3.org\/1999\/xlink\" width=\"100\" height=\"107\" viewBox=\"0 0 100 107\" fill=\"none\"><rect width=\"100\" height=\"107\" fill=\"url(#pattern0)\"><\/rect><defs><pattern id=\"pattern0\" patternContentUnits=\"objectBoundingBox\" width=\"1\" height=\"1\"><use xlink:href=\"#image0_1110_4\" transform=\"scale(0.01 0.00934579)\"><\/use><\/pattern><image id=\"image0_1110_4\" width=\"100\" height=\"107\" 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class=\"elementor-button-text\">Get started<\/span>\n\t\t\t\t\t<\/span>\n\t\t\t\t\t<\/a>\n\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t<\/section>\n\t\t\t\t<\/div>\n\t\t","protected":false},"excerpt":{"rendered":"<p>To compliantly hire internationally, businesses have three different ways to get there and must assess each one of these approaches. \u00a0<\/p>\n","protected":false},"author":1,"featured_media":13173,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false},"categories":[175],"tags":[],"class_list":["post-13136","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-latam-global-insights","category-175","description-off"],"acf":[],"yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v27.4 - https:\/\/yoast.com\/product\/yoast-seo-wordpress\/ -->\n<title>Employer of record vs. Entity setup vs. 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