Once you've decided to go global, the first concrete question usually isn't "should we go" but "how do we employ people?" Do you register an overseas company right away and hire directly, or find a compliant way to get people working first? Behind that choice sit three mainstream go-global employment models.
Three models, in one line each
- Build a team: set up a local entity (subsidiary/branch) and hire employees directly under that local company.
- EOR (Employer of Record): no entity — a licensed third party acts as the "employer of record" and hires compliantly, while you handle day-to-day management.
- Staff dispatch: a licensed dispatch agency employs and assigns people to your project, with flexible scale up or down.
Build a team: most control, but heaviest
Building a team means full control — you manage the team directly, accumulate local organisational capability, and it's best for long-term brand and culture. The cost is weight: registering an entity, opening accounts, and handling tax, social insurance and labour compliance all take time and money — and if the market doesn't work out, exit isn't cheap either. It suits firms with a clear plan, committed to the long term.
EOR: lightest, fastest
If you just want to send two or three people to test a market, setting up a company for it is clearly too heavy. EOR lets you hire local employees compliantly without an entity — a licensed provider handles contracts, payroll and compliance while you focus on the business. It's fast, light and reversible, ideal for pilots or when headcount is still small.
Dispatch: the flexible middle ground
Dispatch sits between the two: ideal for project-based, temporary or fast-flexing headcount. The licensed agency carries the employment responsibility and you use people as needed. For volatile technical projects, dispatch meaningfully lowers fixed employment burden.
There's no "best" model — only the one that fits right now. The core question is whether you need more control, or more flexibility.
A quick way to decide
Try three questions. First, is the market proven? If not, favour EOR or dispatch. Second, what's the headcount and duration? Large and long favours building; small and short favours the lighter models. Third, do you need to build local organisation and brand? If yes, you'll eventually move toward building a team. In practice, many firms follow a "light-then-heavy" path — pilot with EOR, then set up an entity and convert the team once the market is proven.
Whatever your stage, choosing the right model often matters more to the outcome than any single hire. If you're unsure, we're happy to talk through your specific situation.