Employer of Record (EOR) vs Entity Setup: Full Comparison Guide for Global Expansion
EOR vs Entity Setup: What’s the Best Global Hiring Model for Your Business?
Looking to expand globally but unsure whether to use an Employer of Record (EOR) or set up a legal entity? This guide offers a clear, PH-based comparison between EOR services and entity setup models to help you choose the right path for international hiring. We break down costs, compliance, speed, and scalability—backed by real-world use cases and third-party insights—so you can make a confident, strategic decision for your business.
Quick Comparison:
Employer of Record (EOR) vs Remote Teams
| Features | EOR | Entity Setup |
|---|---|---|
| Speed to hire | 1 to 2 Weeks | 3 to 6 Months |
| Cost | Low setup fees | High legal + admin |
| Control | Operational only | Full legal presence |
Frequently Asked Questions
What is the main difference between EOR and entity setup?
- EOR allows you to hire legally without establishing a business presence, while entity setup involves full legal and tax responsibilities.
Which is faster: EOR or entity setup?
EOR is much faster — typically 1–2 weeks, compared to 3–6 months for entity setup.
What are the cost implications of each option?
- EOR has low setup costs and managed fees. Entity setup involves higher legal, registration, and admin costs.