Open a local entity or use an EOR? Compare instantly.
Tell us where you're hiring and how many team members. We'll show you what it really costs to set up and run your own local entity vs. using an EOR, so you can make an informed decision.
Only include full-time employees, not contractors.
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Salaries, employer taxes and benefits are excluded: they're broadly the same either way. This compares the cost of the employment model only.FAQs
What is an Employer of Record (EOR)?
An Employer of Record legally employs workers on your behalf in countries where you do not have an entity and supports everything that happens throughout employmentβfrom payroll and benefits to leave, compensation changes, time off, and terminations.
Should you use an EOR or set up an entity?
An Employer of Record is often more practical when entering a new market quickly, hiring a smaller team, or testing expansion without a major upfront investment. Establishing an entity may become more economical at higher headcounts, when a company needs a permanent local presence, or when you already have in-house HR and compliance expertise. The right option depends on the country, team size, timeline, and capacity to manage local operations.
When is an EOR better than setting up an entity?
An EOR is typically better for faster market entry, smaller teams, uncertain hiring plans, lack of local expertise, or situations where you want to avoid the cost and operational responsibilities of establishing an entity.
When does setting up an entity make sense?
An entity may make sense when you expect a substantial long-term workforce, require a permanent commercial presence, or have the internal resources to manage local legal, payroll, tax, and compliance obligations.
How accurate are the estimates?
The entity estimate uses country-specific benchmarks for setup, annual fixed costs, per-employee administration, and the estimated time required from Legal, Finance, and HR teams. The EOR estimate uses Oyster's monthly fee for the selected team size and timeframe.
These figures are directional estimatesβnot quotes or legal advice. Actual costs and timelines vary according to company structure, industry, hiring requirements, and local regulations.
These figures are directional estimatesβnot quotes or legal advice. Actual costs and timelines vary according to company structure, industry, hiring requirements, and local regulations.
Want help evaluating your options?
Talk to an Oyster expert about your hiring country, expected team size, and expansion plans.
