International Expansion: How You Can Easily Set Up An International Team

Considering an international expansion is a common yet daunting step for many growing companies. When the prospect of managing operations in a new location comes up, a myriad of questions tends to arise: is local recruitment the best approach? Should you establish a local entity, or perhaps deploy in-house staff? The intricacies of testing uncharted markets can undoubtedly cause stress. 

You will, however, find that there are streamlined solutions poised to alleviate your concerns and circumvent the potential pitfalls of a hasty expansion. These solutions not only save time but also give you a lot of flexibility for your growing international teams. Let’s explore all your options, to ensure you hold all the cards and can make the best decision for your company.

International Development: Should You Set Up A Local Subsidiary?

One obvious question that comes up when looking into international expansion: should you set up a local subsidiary, such as a Ltd in the UK, a GmbH in Germany or a SARL in France? While it may immediately spring to mind as the ideal solution, it inevitably comes with the need for many administrative intricacies, chartered accountants, legal considerations, local payroll, and the nuances of regional laws and regulations. 

If your initial phase of international expansion goes well, establishing a local entity could indeed become an attractive option, providing autonomy to a fully independent team. However, in the majority of cases, this is not the first step to take. Expanding internationally is a big risk and creating a local subsidiary is complex, particularly in countries where the administrative burdens of company setup and operation surpass those of the UK—think France, Spain, and their counterparts. This is complicated even further by the significant variations in tax rates and social security contributions across different markets.

The key takeaway: setting up a local subsidiary may not be the best choice when dipping your toes into a new market. The solution we highly recommend instead is opting for an Employer of Record (EOR).

Employer Of Record: The Simple, Fast And Legal Solution For Rapid Expansion

Working with an Employer of Record (EOR) like Hightekers is the perfect solution for a company looking to test the waters of an expansion without the hassle and complications of setting up locally. An EOR acts as an intermediary between a company and its employees, assuming all legal and administrative responsibilities associated with hiring, payroll, taxes, and HR compliance in different countries. 

An EOR essentially becomes the legal employer of record for the company’s overseas employees, ensuring compliance with local labor laws, social security contributions, and tax requirements. This outsourcing arrangement empowers businesses to focus on their core operations while entrusting the intricacies of international employment to the expertise of an EOR. In simpler terms, an EOR serves as a bridge connecting companies to a global talent pool. 

The benefits of working with Hightekers as your Employer of Record are clear: 

• You are able to start testing and familiarising yourselves with other countries’ markets without having to commit to setting up shop there.
• You can recruit amazing local talent who will make the expansion process even smoother for you. 
• We offer payroll expertise that is budget-friendly and that will allow you to easily scale your teams.
• You can delegate 100% of compliance issues to us! We create local contracts for your employees to ensure they operate in full compliance with local employment laws.
• You can bypass the need for a local subsidiary and establish your presence in multiple countries without the need for physical offices or legal structures.
• Your HR department is free to focus on recruiting the best team members, no longer having to spend hours understanding international regulations.
• We take care of all local administrative and contractual procedures so that you can focus on your core business.

Local Contracts For Your Employees

When you choose the Employer of Record service with Hightekers, you’re not just gaining access to international recruitment – you’re also ensuring that your international employees are integral members of your team. The key to this is the local contracts facilitated by the local Hightekers offices. 

As international employees of your company, we allow your staff to enjoy the benefits of employment in their country, from establishing a bank account to accessing credit and even the possibility of obtaining a Visa. By securing a local contract, your team members can fully immerse themselves in the local lifestyle, fostering a sense of belonging and stability. Hightekers not only serves as your Employer of Record but also acts as a local branch, ensuring your team’s smooth assimilation into the new market.

Beyond contractual obligations, Hightekers also takes on the role of a strategic advisor, guiding your business on the best methods for organic local development. This collaborative approach empowers your expansion at a manageable pace, minimizing risks and facilitating a seamless transition into the local business landscape.

So, as we’ve explored, setting up local subsidiaries is not the best solution when starting an international expansion. Instead, opting for the efficiency of the Employer of Record service is the ideal solution for both you and your current and potential employees. 

Hightekers, with its wealth of experience and commitment to simplifying international operations, is a reliable partner in this initiative. Whether you’re testing new markets or looking to establish a foothold with just a few employees, the expertise, flexibility, and compliance offered by Hightekers ensures that your expansion is a success. The speed and ease of working with an Employer of Record like Hightekers is unparalleled compared to setting up a local entity independently. We help companies in many ways. These ways include helping them launch your products or services in new countries without having to open local entities, growing their business by building a local team or even relocating one or more of their employees abroad without any limitations. Whatever the country you are considering expanding to, we’ve got you covered!