Entity Setup
Entity setup is incorporating a legal subsidiary in a foreign country to employ workers directly, sign local contracts, and operate as a resident business. Typical setup takes 3–9 months and requires ongoing local accounting, tax filings, and statutory representation.
Entity setup makes economic sense once headcount, revenue, or strategic presence in a country justifies the recurring cost: typically 15–30+ employees or meaningful local revenue. Below that threshold, EOR is faster and cheaper. Common mistake: setting up an entity for the first 3 hires and losing 6 months of ramp; use EOR for early presence, transition to entity once scale is confirmed.
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