Yes, you can hire employees in another country without setting up a local entity by using an Employer of Record (EOR).
An EOR acts as the legal employer and takes care of:

● Local employment contracts

● Payroll, taxes, and social security

● Statutory benefits and compliance

This allows companies to expand internationally quickly without the cost and complexity of entity setup.

An EOR hires employees on your behalf while you manage their day-to-day work.
The EOR is responsible for:

● Employment contracts compliant with local labor laws

● Payroll processing and tax filings

● Benefits administration and termination compliance

You retain full control over the employee’s role and performance.

Yes, using an EOR is legal in most countries, as long as the provider complies with local labor laws.
However, regulations vary by country, so it's important to ensure:

● Proper employment classification

● Locally compliant contracts

● Adherence to tax and social contribution rules

Hiring through Remoly EOR typically takes from a few days to 2–3 weeks, depending on the country.
This is significantly faster than setting up a legal entity, which can take months.

It depends on your growth stage. An EOR is better for speed and flexibility, allowing you to hire in days with low upfront costs. A Local Entity is better for long-term scale, offering more control at a higher maintenance cost.

● The Split: The EOR handles legal employment (contracts, payroll, taxes, and compliance), while you manage the employee’s daily work, performance, and compensation decisions.

The Strategy: Use an EOR to test new markets or manage small teams (1-10 staff). Transition to a Local Entity once your headcount grows large enough to justify the overhead of a permanent subsidiary.

Companies typically use an EOR when hiring in a new country quickly or testing a market.

Common scenarios:

● Hiring first employee abroad

● Expanding into new regions

● Avoiding entity setup costs

EOR is safer for compliance, while contractors carry misclassification risk.

● EOR: fully compliant employment

● Contractor: lower cost but legal risk

EOR pricing typically ranges from $300 to $1000+ per employee per month, depending on the country and provider.

Costs vary based on:

● Country regulations

● Employee salary level

● Included services

An EOR becomes less cost-effective when you scale a large team in one country.

At that point:

● Setting up a local entity may reduce long-term costs

● Direct employment gives more control