Why Global Expansion is Key for Sustained Growth in 2025 and Beyond

It’s often said that the internet has made starting a business easier than ever. However, what is frequently overlooked is how competitive the modern landscape is. In our increasingly interconnected world, the competition for talent and customer mindshare doesn’t only stem from rival businesses in your town, region, or even country. Businesses of all sizes are now exploring a global expansion strategy, and the fastest-growing opportunities often lie beyond domestic borders.  

International markets allow businesses to offset stagnation in local economies, while also taking advantage of GDP growth in new territories. By expanding globally, companies can tap into new customer bases, diversify their revenue streams, and increase brand awareness.

How an Employer of Record Drives Global Expansion

Traditional methods of entering new markets, such as establishing local entities, are time-consuming and costly. For example, our data shows that a business takes an average of 20 weeks to get set up in a new country, while the costs can spiral to USD 80,000 or more.  

Employer of Record (EOR) services provide a compliant, cost-effective alternative. A direct EOR service provider, such as Atlas, can help manage all the legal, HR, and tax compliances, allowing you to quickly onboard talent in new markets. 

In the following section, we have highlighted some of the key risks businesses might face during their global expansion journey. In addition, we’ve also shown why having the right partner, such as an Employer of Record (EOR) service provider, can make all the difference when trying to implement a global hiring solution.

Legal and Compliance Risks

When expanding internationally it’s important to remember that each country has its own labor laws, tax frameworks, and employment practices. As a result, your business's global expansion strategy must consider any local legal requirements, especially in entirely new regions. 

In many cases, non-compliance can often lead to costly fines, reputational damage, or even the loss of operational licenses. For instance, a minor error in tax filings or missing mandatory benefits can have far-reaching and significant consequences. This is especially true for larger businesses, whereby a small oversight could result in hefty fines.

Even a minor compliance mistake can lead to hefty fines, reputational damage, or loss of operational licenses. 

As a business, you can mitigate these concerns by enlisting the services of an EOR. An EOR will specialize in local employment and tax laws to ensure your company remains compliant. Depending on the scale of EOR you choose, they can often handle everything from payroll taxes and statutory benefits to hiring or onboarding new team members. 

Operational Challenges

Setting up a legal entity in a new market is a high-cost and resource-intensive process that can take several months to complete. However, even once a legal entity has been established, businesses can face many ongoing challenges such as managing payroll, local hiring processes, and HR complexities.

Unfortunately, many of these operational challenges can also be exacerbated further when entering federal markets such as the US, where labor laws differ on a state-by-state basis.

A direct Employer of Record, like Atlas, however, mitigates several operational challenges as they don’t rely on complex, expensive third parties. At Atlas, we operate our own network of entities from which businesses can collect and build data-driven insights. Our direct model ensures that companies achieve expert and industry-specific EOR services and resources that are tailored to their niche.

As such, Atlas’ direct EOR model means that we’re able to provide rich, country-specific compliance expertise to help businesses overcome any operational challenges they may face.

Cultural and Language Barriers

While English is often seen as the lingua franca of business, it’s important to remember that not everyone who interacts with your organization will necessarily speak English – meaning that culture and language should be key tentpoles of your global expansion strategy.

When expanding internationally, and especially into more isolated or niche markets, navigating the nuances of local culture and language can pose significant challenges.

In many markets, understanding and respecting cultural expectations is essential for building strong relationships. Missteps in adhering to local business traditions or etiquette can affect employee engagement, customer trust, and your enterprise’s ability to establish a foothold in new regions. With the right expertise, these challenges can be turned into opportunities for both growth and connection.

Partnering with an EOR that has local expertise or a global reach is a great way to navigate the complexities of tradition and culture. Some of the largest multinational EORs, such as Atlas, for example, can provide both local expertise and ​​multilingual support to ensure smoother integration and better communication with both peers and customers alike.

Expanding into foreign markets without a legal entity can be daunting, but an EOR makes it seamless. Traditional expansion methods often require setting up costly and time-consuming local entities. However, an EOR eliminates this need, enabling businesses to enter new markets quickly, stay compliant with local laws, and reduce administrative complexities. 

Direct vs Indirect Employer of Record 

When choosing an EOR, understanding the distinction between direct and indirect models is essential. Both options streamline international hiring by acting as the legal employer for your global workforce, but their approaches differ significantly in terms of ownership, control, and delivery.

Direct Employer of Record

A direct EOR like Atlas, owns and operates its entities in every country where their services are provided. Acting as the legal employer for your international hires, a direct EOR allows your business to onboard talent in new countries while retaining full operational control over their day-to-day work.

Direct EORs manage all aspects of employment in-house, which means that they can provide a better employee experience, as well as unparalleled levels of support and guidance when compared to an indirect EOR. For example, at Atlas, we have a dedicated in-house, global support team that is available to help businesses and their employees with their queries. Atlas also enhances the employee experience by offering a unique learning portal to help employees expand their expertise.

A direct EOR like Atlas enables global hiring while you retain full control over daily operations.

Due to the “all-in-one” approach of a direct EOR, businesses can minimize administrative layers and associated fees, making expansion faster, more efficient, reliable, and scalable. As a result, direct EORs like Atlas are the perfect companion for small, medium, large, and even multinational enterprises looking to grow their global footprint even further.

Indirect Employer of Record

An indirect EOR relies on a network of third parties to deliver various services across different countries. While both models do ultimately allow businesses to access new markets, an indirect EOR often introduces an additional layer of complexity.

The reliance on intermediaries means that an indirect EOR will subcontract employment-related tasks to local providers. In practice, this essentially means that the EOR you hire is then hiring another local employment provider to carry out your tasks. Naturally, this added layer can cause significant service delays and can even compromise consistency should a local employment agency’s standards differ from the indirect EOR you’ve hired.

Indirect EORs can expose businesses to legal risks due to lack of direct oversight and third-party dependencies.

As there are multiple layers of responsibility, indirect EORs may lack the direct oversight required to ensure full compliance with local or regional rules. ​​Indirect EORs can also be a risk to bigger corporations as they can potentially expose these businesses to significant legal risks. For example, should an indirect EOR hire a third-party vendor to oversee a large company's payroll, said vendor could potentially fail to calculate local taxes, which could result in the business being held liable for tax evasion and paying substantial fines.

Lastly, due to indirect EORs subcontracting different aspects of their services to local operators, you’ll often be paying more than if you were to choose a direct EOR provider. Indirect EORs will often be less cost-effective in the long run, especially for ambitious businesses that are looking to expand internationally across multiple markets.

How Does an Employer of Record Simplify Compliance and HR Processes?

Managing compliance and HR processes in foreign markets is a complex and potentially resource-intensive task. An EOR, however, removes these hurdles by handling every aspect of compliance for your international workforce. From employment contracts to payroll and benefits, an EOR ensures your business operates in full alignment with local regulations.

With an EOR, there’s no need to worry about navigating the complexities of regional labor laws or tax requirements. EORs take on the responsibility for critical administrative tasks such as filing taxes, processing payroll, and providing mandatory benefits. As a result, this allows your team to focus on growing and running your business instead of managing back-office operations.

By partnering with an EOR, businesses can simplify their HR operations and reduce compliance risks, ensuring a smooth entry into new markets, while keeping their workforce supported and compliant. 

Why an Employer of Record is Essential for Risk Reduction

Setting up a legal entity in a foreign country is a complex endeavor, even for the biggest businesses. Not only do you need to hire lawyers and accountants, but you also need to ensure that you file your taxes correctly. With an EOR however, all of the unnecessary admin tasks and obstacles of operating in a foreign market are significantly reduced.

EORs help to ensure compliance with local employment laws, protecting businesses from costly penalties or reputational damage. Additionally, an EOR helps to mitigate the risks of misclassification and non-compliance, particularly in regions with complex regulatory frameworks.

Successful global expansion requires navigating a range of operational, legal, and compliance challenges. Employer of Record (EOR) services empowers businesses to overcome these obstacles, offering a smarter, more agile path to success.  

Some of the benefits of using an EOR can be found below: 

Advantages of Using an EOR 

Faster Market Entry: 

• An EOR eliminates the need for a legal entity. As a result, with an EOR even a larger company can pivot itself like a startup to take advantage of market opportunities and keep ahead of its competitors. 

• With an EOR, you can hire employees in new countries in days instead of months. 

Reduced Risk: 

• An EOR will serve as your legal employer in foreign markets, meaning that they will assume responsibility for compliance with local employment laws. 

• A direct EOR in particular, can significantly reduce your risk of noncompliance. As such, direct EORs are an essential companion for larger businesses with international teams. 

Streamlined Operations: 

• Managing a large multinational team requires a significant amount of admin, especially concerning payroll, which can often be affected by regional public holidays. However, with an EOR service provider like Atlas, you’re able to offload administrative duties such as payroll and tax compliance to us.  

• Our team of regional experts will be able to help you manage the day-to-day administrative duties, while you focus on doing what you do best — growing your business. 

With entities in over 160 countries worldwide, Atlas offers unrivaled expertise. As the world’s first — and largest — 100% direct Employer of Record (EOR), Atlas is uniquely placed to enable innovative companies to compete in a global economy. 

At Atlas we don’t just offer services, we offer flexibility. Our end-to-end EOR and Human Experience Management (HXM) solutions let companies expand across borders, onboard talent, manage compliance, and pay their global workforce, all without the need for a local legal entity or multiple third-party providers. 

Atlas also provides a range of comprehensive resources, such as the Global Salary Calculator, which helps businesses benchmark compensation and design equitable packages. Meanwhile, our dedicated, global multilingual support teams ensure a seamless experience for both businesses and their employees.  

Case Studies: Real Success Stories with Atlas

Vetspire (North America, Software) 

Vetspire is a cloud-based veterinary practice management platform and medical records system, specializing in providing vets with smart electronic records. The business was looking to find high-skilled talent for a software development position in the US. 

After struggling to find a suitable candidate stateside, Vetspire turned to international markets, where they found a UK-based talent. However, Vetspire needed immediate HR support to ensure that their employment was legal and compliant, as they didn’t have a legal entity in the UK.  

By using Atlas’ direct EOR model, Vetspire was able to quickly and legally hire their UK-based candidate under Atlas’ UK entity. 

Explore the full Vetspire story here. 

Wayzim (APAC, Logistics)

Headquartered in Wuxi, China, Wayzim is a leading provider of intelligent logistics solutions. The business sought to expand its logistics operations into a wide range of new markets such as the USA, India, and South Korea. However, while Wayzim needed to quickly source overseas talents, the varying labor laws and regulations posed significant challenges.  

In addition to diverse labor laws, Wayzim also faced difficulty in finding overseas talent who had the required industry experience. By partnering with Atlas, Wayzim was able to leverage global expertise to support business expansion and provide compelling benefits for overseas employees. 

“Intelligent logistics equipment is a niche industry and it is not easy to source overseas talents with required industry experience. We need to provide a compensation and benefits package that is equally or even more competitive than local competitors to influence talents’ decisions. Atlas helped us to achieve it.”  

Rex Xiang  - Global HRBP Manager, Wayzim 

Read more about Wayzim’s global expansion journey. 

Clean Air Fund (Europe, NGO)

Working with governments, researchers, and businesses alike, the Clean Air Fund is a philanthropic organization and environmental advocate.  

The Clean Air Fund faced a significant HR challenge as it wished to build a global team. As such, the organization needed to set up operations in several new countries, including South Africa, Ghana, Kenya, and Belgium. However, establishing their own entities in each new country was costly and time-consuming.   

By partnering with Atlas, Clean Air Fund discovered a potent global hiring solution that was tailored to their needs. Atlas’ global reach and expertise ensured that the Clean Air Fund could expand while still being fully compliant with local laws. 

Learn how Atlas was key to this NGO’s global expansion strategy. 

Affygility Solutions (North America, Consulting) 

North American-based consulting firm Affygility Solutions is a market leader in providing services for the biotech and pharma industries. However, the company required Atlas’ support hiring in their new markets: Brazil and the UAE. 

“We didn’t have the expertise required to hire people overseas and needed a one-stop solution that could cover everything from payroll, to health benefits, to regulatory compliance and more.”  

Dean Calhoun - Chief Executive Officer, Affygility Solutions 

To support Affygility, Atlas integrated the company’s current infrastructure with our HXM technology to help seamlessly onboard, manage, and pay new talent. In addition, Affygility also benefited from Atlas’ “on the ground” support in Brazil and the UAE, to help them ensure compliance in these new markets.

Learn more about Affygility’s global expansion.

Atlas Learning is a prime example of how Atlas is leading the way in delivering world-class employee benefits.  

At Atlas, we are committed to helping businesses foster strong global teams while simplifying the complexities of international HR. As a result, businesses across the world who use our EOR services can access over 6,300 courses from some of the world's biggest institutions including the likes of Yale, Microsoft, and AWS. Embedded directly into our HXM platform, Atlas Learning ensures that global worksite employees can enjoy the same high-quality training opportunities usually available only to corporate, head office staff. 

Elevating the employee experience

We understand that competitive benefits are critical to attracting and retaining top talent. As such, Atlas also offers unique, tailor-made packages that include healthcare, retirement plans, and generous paid leave to meet and exceed local expectations. 

In addition to these packages, as a direct EOR, we are fully committed to helping businesses enhance employee development. With Atlas Learning, we provide access to over 9,000 professional development courses to help companies upskill and empower their workforce. 

Seamless onboarding and local expertise

International onboarding processes can be complicated due to regional nuances and cultural expectations. However, with Atlas as your direct EOR partner, we can get your international teams to start working faster, with ​​same-day onboarding.  Our localized, and multilingual support ensures employees are guided every step of the way, creating a smooth transition into their new roles. 

Additionally, our support team is always ready to provide assistance for management teams or to address any employee questions. Our dedicated, multilingual teams ensure that no matter what language your employees speak, or how big or small a concern may be, we’ll be able to resolve it.

Navigating Regional Nuances While Expanding Globally

Asia-Pacific 

Asia-Pacific (APAC), is a vast region that stretches from East Asia through to South Asia, Southeast Asia, and Oceania. Encompassing a varied and diverse set of economies such as Australia and the Philippines, APAC is commonly seen as a prime destination for businesses looking to expand internationally.  

Across the region, several standout nations are ripe for global expansion. For example, The Republic of Singapore boasts four official languages (English, Malay, Mandarin, and Tamil), which makes it an easy-to-enter market for both English and Mandarin-speaking businesses. Meanwhile, its robust financial sector makes it a prime destination for fintechs and challenger banks across APAC and beyond.  

Equally, countries such as China and India have long been sought after as part of a global expansion strategy due to their large populations. Their vast pool of skilled laborers, especially in IT, engineering, and production has already seen several businesses switch production to these markets.  

Despite these advantages, there are of course some risk factors that businesses must consider before expanding into the region. For example, while Japan has a highly educated workforce and a robust economy, its declining population is cause for concern. Meanwhile, navigating changes such as Singapore’s flexible work arrangements could prove troublesome for businesses that demand all their employees work from an office. 

Learn more about expanding across Asia-Pacific, by exploring our APAC Expansion Guide. 

North America

Consisting of Canada, Mexico, and the United States of America, North America is a pivotal region for businesses seeking to expand globally. With robust economies, advanced infrastructure, and diverse talent pools, this region offers unparalleled opportunities for companies aiming to establish or grow their international presence.

The US is not only North America’s biggest market but also the world’s largest economy, with a GDP of over 29 Trillion USD. As such, the US is often sought after by foreign businesses seeking global expansion, making it a favorable, yet highly competitive market. Meanwhile, Canada’s stable economy, low labor costs, and growing finance and tech sectors also make it a prime destination for businesses interested in the North American market.

Unlike both the US and Canada, the official language of Mexico is Spanish, which opens the country up to Spanish-speaking businesses in Europe or Latin America. Mexico boasts a skilled workforce and its proximity to the US allows it to be a testing ground for Latin American businesses looking to expand north.  

Compliance is one aspect of the North American market that can pose a significant challenge for businesses. For example, in the US and Mexico, labor and employment laws are regulated at both the federal and state levels. As a result, this can sometimes mean that your company’s practices might have to change based on the location of your employees. Additionally, in Canada, labor laws vary by province, which can make compliance complex without the help of an EOR. 

Delve deeper into North American expansion strategies with the help of our North American Expansion Guide.

Europe

Home to the world’s largest single market area, Europe is often one of the first choices for global expansion. Europe boasts a large shared population across a diverse range of nations, such as the UK, Germany, Italy, France, and Spain.

As the biggest economy in the European Union, Germany is considered a favorable investment environment. The country boasts a highly skilled labor force and along with Italy, has a long history of producing motor vehicles and machinery. Meanwhile, the UK is a favorable market for expansion due to its long-standing trade relations with the US and Asia. Additionally, compared to other European nations, the UK has a competitive tax rate, making it a premier destination in the continent. However, while the UK has previously been a well-traveled expansion path enjoyed by countless successful businesses, post-Brexit legal issues have seen many businesses prefer to host their European headquarters outside of the UK.

Expanding into Europe requires careful attention to one of its most critical regulations: the General Data Protection Regulation (GDPR). This complex, far-reaching law governs how businesses process and handle personal data from customers and other entities. Noncompliance with GDPR can result in severe penalties, making it a cornerstone of any EU expansion strategy.

Beyond GDPR, navigating Europe’s diverse and intricate legal landscape poses additional challenges. Each country enforces unique labor laws, tax systems, and regulatory requirements. For instance, Italy’s tax regime is notoriously detailed, requiring significant expertise to ensure compliance. Similarly, Germany’s regulatory framework demands a thorough understanding of its legal complexities. Even the UK, which is outside the European Union, has a tax system that can be time-intensive to manage. 

Given these complexities, partnering with a direct Employer of Record (EOR) such as Atlas, can simplify your expansion efforts. A direct EOR provides local expertise, ensuring your business remains compliant with both regional and country-specific regulations. With the right support, Europe’s challenges can be transformed into opportunities for sustainable growth. 

Explore strategies for navigating the complexities of the European market with our detailed Europe Expansion Guide. 

Middle East

Located at the intersection of Europe, Asia, and Africa, the Middle East offers businesses access to a dynamic and rapidly evolving region. While historically known for its oil and gas wealth, nations like the UAE, Saudi Arabia, and Qatar are all rapidly diversifying their economies, creating opportunities in technology, renewable energy, and finance. The region’s free trade zones, tax incentives, and initiatives promoting foreign investment have also made it an increasingly attractive destination for global expansion. 

Despite its potential, the Middle East presents unique challenges. For example, compliance with local labor laws, such as mandatory hiring quotas known as “Saudization” or “Emiratization,” requires careful navigation. Additionally, businesses need to adapt to the region’s cultural and religious practices, which are central to building trust and fostering successful relationships. 

Gain essential insights into Middle Eastern markets with our dedicated Middle East Expansion Guide — See the full collection here. 

Latin America

Latin America (LATAM) is a vibrant and extensive region home to some of the fastest-growing economies in the world. Rich in natural resources such as oil, copper, and gold, LATAM plays an important role in the global economy.  

As a region, LATAM offers a wealth of opportunities for businesses looking to enter the territory as part of their global expansion strategy. From Brazil’s booming technology and e-commerce industries to a burgeoning renewable energy sector, the region is diverse in its appeal to businesses worldwide. 

However, navigating the region's regulatory landscapes can be challenging. For example, Argentina has one of the highest corporate tax rates in the G20 (alongside India). Meanwhile, the oil-rich markets of Colombia and Venezuela have long been plagued by allegations of government corruption. 

Find out more and explore strategies for success in LATAM with our dedicated Latin America Expansion Guide. 

The power of informed decision-making with Atlas

Whichever market you choose as part of your global expansion, Atlas is here to help. Tools, such as our Global Salary Calculator, for example, enable companies to analyze the salaries in the region. This indispensable tool provides an up-to-date analysis of market expectations, helping companies to create competitive compensation packages.  

In addition to our salary calculator, Atlas’ Global Employee Cost Calculator demystifies the true cost of expanding your team across borders, allowing you to compare the total cost of hiring in different countries. The intelligent tool also accounts for payroll taxes, benefits, and compliance requirements, ensuring that your global expansion remains cost-effective.  

Both our Global Salary Calculator and Global Employee Cost Calculator uses data analysis and insights to empower businesses to strategically plan their global expansion with optimal efficiency.

With operations in over 160 countries and years of expertise, Atlas is the perfect global expansion partner for your business. Our vast network saves you time and money, providing you with expert localized knowledge of employment laws, cultural norms, and compliance requirements.  

At Atlas, our team of experts ensures that your global hiring strategy aligns with local regulations, giving you peace of mind and a competitive edge. Whether you’re entering a single market or scaling across regions, Atlas empowers your business to navigate the complexities of global hiring while staying agile and compliant. 

Tailored support for your global expansion journey

• Expert guidance at every step:  Atlas’ specialists work with you to identify the best hiring strategies for your target regions. From compliance and payroll to benefits and HR management, we handle the details so you can focus on growth. 

• Comprehensive tools for informed decisions:  
  Atlas offers powerful solutions like salary calculators and compliance dashboards, giving you the data and insights needed to make strategic choices as you expand.

• Localized expertise at scale: Our team ensures your business adapts to local customs, regulations, and labor laws, enabling you to build strong relationships with employees and partners in new markets. 

With Atlas as your partner, you’re not just expanding your business — you’re enabling it to compete in an increasingly borderless world.

Speak with an Atlas expert today to explore how we can support your global hiring goals. Our friendly and knowledgeable team will walk you through the process and help you create a tailored expansion strategy that works for you. 

Ready to grow without borders? Let Atlas help you make it happen.