Hiring global talent presents numerous challenges for businesses, large and small, particularly when navigating complex labor and tax regulations. Establishing a local business entity in multiple countries can be time-consuming, costly, and administratively burdensome.
However, partnering with Atlas as your Employer of Record (EOR) simplifies the process, streamlining hiring, reducing costs, and mitigating risks. Below are the key differences and benefits of establishing your own local entity versus working with Atlas for global expansion.
Establishing an Entity vs Partnering with Atlas for Global Expansion
Choosing the right approach to global hiring requires a clear understanding of the tradeoffs. Below, we outline key differences between establishing your own legal entity and partnering with Atlas and beginning with one of the most impactful factors: cost.
Entity Cost Efficiency: Save up to 85% with Atlas
Establishing a local entity can be expensive, with an average cost of USD 203,000 per country*. This includes expenses such as entity registration fees, legal compliance, and administrative setup costs, which can vary significantly depending on the location.
In contrast, partnering with Atlas significantly reduces expenses, with an average cost of USD 31,500. By leveraging Atlas' direct EOR services, businesses can bypass the complexities of setting up a local entity and minimize associated costs.
Up to 90% Faster Market Entry
Setting up a local entity requires extensive paperwork, regulatory approvals, and procedural formalities that can take up to 20 weeks per country. This extended timeline delays hiring and business operations.
However, with Atlas, onboarding talent is expedited, allowing companies to complete the hiring process within days rather than months. This enables organizations to scale their workforce rapidly and seize market opportunities more effectively.
Reduced Labor Effort
Establishing and maintaining a local entity requires hiring a dedicated team to manage compliance, payroll, and legal matters. This includes recruiting local staff, engaging legal advisors, and hiring payroll providers to oversee administrative functions.
Partnering with Atlas eliminates these challenges by offering an integrated one-partner solution. Atlas takes care of all legal, financial, payroll, and onboarding matters, allowing businesses to focus on their core operations.
Simplified Banking Obligations
A local entity typically requires setting up a local bank account, which can be a complicated and time-consuming process. Employers must meet stringent banking requirements and navigate issues such as foreign exchange restrictions.
With Atlas, companies do not need to open a local bank account, as Atlas can facilitate payroll processing in compliance with local regulations, ensuring seamless employee payments.
Tax Liability Management
Managing tax liabilities is another crucial aspect of establishing a local entity. Companies need to navigate corporate income tax, VAT taxes, and other country-specific levies. Partnering with Atlas helps businesses mitigate tax liabilities by ensuring full compliance with employment tax regulations. Atlas’ expertise in global tax management reduces the risk of financial penalties and ensures accurate tax reporting.
Regulatory Compliance Made Easy
Every country has distinct labor laws, tax policies, and compliance requirements that businesses must adhere to when hiring employees. Keeping up with these evolving regulations can be challenging.
Atlas approach to compliance includes a team of regulatory experts who monitor legal changes and ensure compliance on behalf of businesses. This proactive method helps companies stay ahead of regulatory requirements without having to dedicate internal resources to legal compliance.