When is EOR not a suitable option for expanding business
When is EOR not a suitable option for expanding business
"EOR, as a business model, isn’t a size that fits all. Learn when EOR services are not suitable for expanding businesses."

When is EOR not a suitable option for expanding business?

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Setting foot in a foreign country is a critical aspect of expanding business horizons. For some companies, entry into a new market can be a survival tactic in the highly competitive global business environment. Whatever the goals you may have, choosing the right type of business model is key to ensuring the smooth establishment of your presence in the target market.

There are two best pathways you can choose from. You can establish your business presence in the target market either through the establishment of a legal entity (a subsidiary company) or by hiring a remote workforce. Many businesses prefer to choose the latter option since it’s cost-saving and easy to hire the workforce.

Within the remote work setup, you have different service options, but employer of record (EOR) services often stand out. The main reason is that, with EOR support services, you can enter a new market with minimal capital since you don’t need to form a legal entity and, at the same time, operate your team without any compliance risks. These are some key reasons that make EOR services unique from other service options when looking to build a remote team abroad.

However, it isn’t that one size fits all. The EOR model isn’t suitable for all business sizes and isn’t applicable to address some types of business circumstances or goals. Through this blog, you’ll learn about various business circumstances in which using EOR services isn’t considered to be the best option. To provide comprehensive insights about handling each situation, the blog also offers alternative solutions you can look into.