Compare
Global Expansion Methods, Compared
There is no single “right” way to expand into a new country — the right method depends on how many people you’re hiring, how long you plan to stay, and how much compliance risk you can absorb. This page compares the core methodologies, matches them to real scenarios, and compares the service providers most commonly used to execute each one.
Coverage figures, pricing, and provider positioning change frequently in this market. The figures below reflect general industry positioning at time of writing — verify current terms directly with any provider before making a decision.
The Five Core Methodologies
Every global hiring approach is a variation on one of these five. Understanding the trade-offs here makes every decision after this one easier.
Direct Entity (Subsidiary)
Incorporate your own legal entity in the target country and employ people directly. Full control, highest setup cost and time.
Employer of Record (EOR)
A third party legally employs your worker on your behalf. You direct the work; they handle payroll, tax, and compliance.
Professional Employer Organization (PEO)
Co-employment model, typically used where you already have a local entity but want HR/payroll admin outsourced.
Independent Contractor
Engage talent as contractors rather than employees. Fastest and cheapest — but carries real misclassification risk.
Global Payroll Aggregator
You already have entities in multiple countries; a single platform consolidates payroll across all of them.
Methodology Comparison
How the five methods stack up across the factors that usually decide the choice.
| Methodology | Setup Time | Cost Level | Compliance Risk | Control | Best For | Exit Flexibility |
|---|---|---|---|---|---|---|
| Direct Entity | 2–6 months | High | Low (if managed well) | Full | Long-term presence, 20+ hires | Low — entity wind-down required |
| EOR | Days to 2 weeks | Mid–High per head | Low — provider absorbs it | Shared | Testing markets, 1–20 hires | High — cancel anytime |
| PEO | Weeks | Mid | Shared with your entity | Shared | Entity already exists, want HR outsourced | Mid |
| Contractor | Days | Low | High — misclassification exposure | Limited | Short-term, project-based work | High |
| Payroll Aggregator | Weeks (integration) | Mid | Depends on entities | Full | Multi-country, entities already in place | Mid |
Compare By Scenario
The right methodology depends less on your industry and more on the specific situation you’re solving for.
Market Testing
Hiring 1–3 people in a brand new market
You don’t yet know if this market will work out. An entity is a sunk cost if it doesn’t. An EOR lets you hire compliantly in days and exit cleanly if plans change.
Rapid Multi-Country Scaling
Hiring across 10+ countries at once
Setting up entities in ten countries simultaneously isn’t realistic on a startup timeline. A single EOR platform with broad country coverage keeps onboarding speed consistent everywhere.
Short-Term Project
A 3–6 month engagement, clearly scoped
If the work is genuinely project-based — defined scope, defined end date, worker retains autonomy — contractor status can be appropriate. Get the classification test right first; this is the highest-risk category to get wrong.
Established Presence
You already have a local entity, 50+ employees
You’ve already absorbed the entity cost — now the problem is administrative load, not legal structure. A PEO or aggregator consolidates payroll and HR admin without changing who legally employs the worker.
Senior / Executive Hire
A single strategic leadership hire in a new region
One high-value hire rarely justifies an entity. An EOR gets a compliant, properly-benefited offer in front of the candidate fast — important when you’re competing for senior talent.
Regulated Industry
Finance, healthcare, or other high-compliance sectors
Some regulators require the employer of record to be a licensed local entity, not a partner network. Confirm this before choosing a provider — ask specifically whether coverage in your target country is owned or partnered.
Comparing Service Providers
A general positioning comparison of commonly used EOR and global payroll providers. Country coverage, pricing tiers, and entity models shift often in this market — treat this as a starting point for your own due diligence, not a final answer.
| Provider | Entity Model | General Positioning | Often Best For |
|---|---|---|---|
| Deel | Hybrid — owned entities in major markets, partner network elsewhere | Broad all-in-one platform covering EOR, contractors, payroll, and HR tooling in one system | Teams hiring across many countries who want one unified platform |
| Remote | Primarily owned local entities | Narrower country footprint but consistent, provider-owned employment relationships | Teams prioritizing compliance certainty over sheer country count |
| Multiplier | Hybrid — owned and partner entities | Streamlined, straightforward EOR and payroll platform | Startups and smaller teams wanting a simple, cost-effective setup |
| Playroll | Hybrid — owned and partner entities | Compliance-focused EOR and payroll, positioned as a leaner alternative to larger platforms | Cost-conscious teams wanting hands-on compliance support |
| Oyster | Hybrid — owned and partner entities | Known for smooth employee onboarding experience and broad country coverage | Teams prioritizing candidate/employee experience during onboarding |
How To Choose
Define your time horizon
Testing a market for under a year points toward EOR or contractor. Committing for years points toward an entity.Count your headcount
1–20 hires rarely justifies entity cost. 50+ almost always does, eventually.Check the classification test
If the role looks like an employee — set hours, direction, ongoing work — don’t structure it as a contractor.Ask providers about entity ownership
“Owned” vs “partner” entities change who is legally liable if something goes wrong.Model the real cost per hire
Compare fully-loaded cost per employee per country — not just the advertised platform fee.
Not Sure Which Method Fits Your Situation?
We’ll walk through your headcount, timeline, and target markets, and map it to the methodology and provider that actually fits — not the one with the biggest marketing budget.
Talk to an Advisor