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Why You Don’t Need a Local Entity to Hire Globally in 2025

Expanding your team across borders used to mean months of legal work, setting up a local entity, navigating tax laws, and managing payroll regulations. But in 2025, there’s a smarter way to go global—without establishing a legal entity in every country.

Welcome to the world of Employer of Record (EOR) services.

What Is an Employer of Record (EOR)?

An EOR is a third-party organization that legally employs your international team on your behalf. You manage the day-to-day work—they handle the rest: contracts, payroll, benefits, and compliance.

You stay focused on growth. The EOR handles the bureaucracy.

Key Benefits of Using an EOR in 2025

  • Hire faster: Onboard talent in days, not months.
  • Save money: No need to set up legal entities.
  • Stay compliant: EORs know local labor laws.
  • Test new markets: Hire remote sales, developers, or operations staff without long-term legal commitment.

How It Works

  1. You choose the candidate.
  2. The EOR legally employs them in their home country.
  3. They work for you, while the EOR handles taxes, contracts, and benefits.

It’s that simple—and incredibly powerful.

Example: Hiring in India Without a Legal Entity

India is a hotbed for global talent—especially in tech, operations, and support. But navigating labor laws, social contributions, and payroll in India is complex.

An EOR provider lets you bypass the red tape. You get full-time Indian employees working for you, while the EOR ensures you stay 100% compliant with Indian law.

Is EOR Right for You?

Use an EOR if you:

  • Want to hire international employees quickly
  • Don’t want the expense or risk of setting up a local company
  • Need multi-country payroll support
  • Are a startup or scaling company entering new markets

Explore Trusted EOR Partners

We’ve reviewed and partnered with some of the top global EOR providers so you don’t have to.
Start comparing EOR solutions now and find the right partner for your global hiring goals.

Explore EOR Partners

People and Finance is here to help you grow globally—with less friction and more confidence.