Employer of Record vs. Entity Setup: Which One is Better for Your Business?

Navigating Global Hiring Solutions for Business Growth

Global business needs the right talent, risk-free compliance, smooth onboarding, and appropriate tax and benefits calculations.  While entity setup supports you in hiring, payroll, and compliance, an EOR assists you in the payroll and compliance process. Choosing between an entity or an EOR depends on your business goals and targets. However, the best approach for your global journey depends on the specific strengths and considerations of each option, EOR vs. own entity.

In the blog, we cover all the aspects of each option that help you to choose between EOR or entity setup. 

EOR vs. own entity: Which is better?

There’s no one-size-fits-all answer. The best choice depends on your specific needs and goals. An Employer of Record or an entity set up, both have their own set of approaches to streamline the operation required in global business. 

Employer of Record: An EOR is a service provider that helps employers in payroll and compliance. It is a service provider platform that supports you in the post-hiring process – from onboarding a candidate to managing payroll. There are legal formalities that need to be maintained while onboarding international candidates. An EOR takes care of and complies with local labor laws. 

Choose an EOR if:

  • Minimizing administrative burden and ensuring compliance are top priorities
  • Streamline taxation and other statuary benefits to your employees
  • You want to keep your business risk-free 

Own entity: An entity is a registered business set up in any country you target to hire employees to meet your global business requirements. Business entities need to be registered under the country’s law. It is a time-consuming process and huge funds are required. 

Choose your own entity if:

  • You have a long-term commitment to a specific market
  • A high degree of control over the employer-employee relationship 
  • You have huge funds and a slow process does not hamper your business goals

Entity takes time and needs massive funds, while most of the EOR platforms support you in payroll and compliance. Here is an exception. Visit Global Squirrels and experience an innovative EOR platform that supports you in global hiring with payroll and compliance. 

Working with Global Squirrels signifies saving time and resources by managing everything from finding talent to payroll and compliance on a single platform.

Partner with Global Squirrels: Better choice for your global business

Global Squirrels is a SaaS platform that streamlines the operations your business needs. The leading EOR platform offers a vast talent pool from various industries and domains. We act as your Employer of Record (EOR), taking care of everything from talent search and onboarding to payroll, compliance, and benefits administration – all automated which keeps you risk-free and stress-free. Strengthening your global team as we provide:  

  • Finding the best talent that suits your requirements
  • Scheduling interviews with the right candidate
  • Manage onboard, payroll, and compliance on your behalf
  • Act as a legal entity in your target country to reduce the legal complexities

Below is the table to show you the comparative discussions about Global Squirrels, EOR, and own entity for your consideration:

                  Global Squirrels vs. Other  EOR vs. Own Entity

Measures to hire Global Squirrels Other EORs Own Entity 
Set up time No setup time is required. Once sign up with the platform, it will start the process It doesn’t require any setup time  Longer time as it required multiple phases to complete the setup procedure 
Cost  Low cost, only license fees. No markups or agency fees License fees and additional service charges.  It requires a huge fund
Compliance  It removes legal complexities to ensure risk-free onboarding  It reduces legal complexities and makes it risk-free It requires expert professionals to handle tax regulations and manage local labor laws 
Access to the talent pool Access talent pool from multiple countries Most of the platforms do not support hiring Direct access to recruit and hire candidates
Control  Full control over your employees Limit in direct control as the platform assists in payroll, compliance  Full control over employer-employee relationship
Scalability  Simple process to onboard or offboard Easier to upscale the team size Complex to scale up
Exit strategy  Anytime cancel the partnership Anytime cancel the subscription Complex process as time and huge funds involved 
Suitability  Best to get the complete package – finding, hiring, onboard, compliance  Best to reduce the administrative burden  Ideal for long term commitment with the slow process

Important read: Employer of Record vs Staffing Agency: Differences

The cost-effective platform, Global Squirrels offers a diverse range of plans that suit your business operation requirements. While other EOR platform charges $599 for payroll and compliance service per employee, Global Squirrels charges $199 per employee without any additional charges. 

If you need recruitment + payroll services, our charge is $1499 (one-time payment ) + payroll cost. And if you want only recruitment service based in any country, we accept a one-time payment of 10% of the employee’s annual salary. To know more check our pricing plan

For further information, Schedule a Demo with us!


In deciding between an EOR and establishing your own entity, the best choice depends on your business needs. An EOR offers organized, cost-saving, and quick operation, which is ideal for businesses looking to expand and get into new markets. On the other hand, establishing your own entity requires more investment and time. If you are looking for risk-free compliance and efficient support in managing better payroll and benefits, an EOR is the ideal solution.