The legal tech startup guide to international expansion

International expansion is a milestone many startups dream of, and for legal tech companies, it can open up vast new opportunities. 

Expanding abroad offers access to new markets, diverse talent, and increased scalability. But, like most things in the legal industry, it’s not without challenges‌ — ‌especially when navigating regulatory landscapes across borders. 

In this guide, we’ll break down what legal tech startups need to know about going global, including when to expand, the benefits, and challenges, and how to make international expansion easy and fast with a global employment partner like Remote.

What is international expansion for legal tech startups?

International expansion means taking your legal tech company beyond your home market and establishing operations in new countries. 

This could mean anything from opening offices abroad and partnering with local firms, to adapting your tech solutions to meet different legal standards or client needs in various jurisdictions.

Expansion can take various forms, including:

• Exporting: Directly selling your products or services to customers in international markets.

• Licensing: Allowing other businesses to use your intellectual property or materials.

• Merging: Joining forces with, or in some cases acquiring, another company to gain access to new technologies, capabilities, or markets.

• Partnering: Forming strategic partnerships with other businesses to combine strengths and resources, often in complementary industries or sectors.

In essence, international expansion is about growing your footprint beyond borders, but it also involves adapting to new legal frameworks and customer demands.

When is the right time to expand abroad?

Knowing when to take your legal tech startup international is key. Expanding too soon can stretch resources, while waiting too long might mean missed opportunities. So, when is the right time?

For legal tech startups, the right time to consider international expansion often comes when they have a solid customer base at home and have reached a plateau in growth. Additionally, if your startup receives inquiries from potential clients or partners overseas, or if global trends suggest a demand spike in regions with less competition, these signals indicate a ripe moment for expansion.

Here are some other considerations.

Strong domestic success. Before venturing abroad, ensure your product or service performs well in your home market. Consistent revenue growth, a solid customer base, and product-market fit are all signs that your startup is ready for global expansion.

Demand from foreign markets. Sometimes, your customers or potential clients will indicate the need for your product in other countries. If law firms or corporations from other regions start showing interest in your solution, it could be a clear signal to explore those markets.

Scalable product. If your legal tech solution can be easily adapted to different legal systems or languages, it may be time to consider international markets. For example, contract automation platforms and e-discovery tools often translate well across borders.

Available resources. Expanding internationally requires resources. You’ll need a team that can manage legal compliance, marketing, and sales in foreign regions. If you have the operational capacity to support growth, you’re in a strong position to expand.

What are the benefits of legal tech startup expansion?

Expanding internationally offers several benefits that can accelerate growth and innovation:

Access to new markets. By moving into international markets, legal tech startups can tap into new customer bases, including law firms, corporate legal departments, and government bodies that need technology to streamline their legal work.

LegalZoom successfully expanded from the US into the UK by offering simplified legal document services, addressing the demand for affordable, accessible legal services abroad.

Access diverse talent. Expanding globally allows you to hire talent from different regions, which can bring fresh ideas and perspectives. Many countries also have strong legal and tech talent pools that can enhance your product and business development.

According to a report by Deloitte, legal tech companies hiring internationally reported a 30% increase in innovation due to the diversity of their teams.

Revenue diversification. Global markets offer the chance to diversify revenue streams, reducing dependence on a single market and mitigating risks associated with local economic downturns or regulatory changes.

First-mover advantage. Entering a new market before competitors can give you a significant edge. You can establish your brand, build relationships, and tailor your offering to meet the local market’s unique needs.

“When you’re a startup that cares about efficiency and burn rate, and you don’t want to throw money out the window, you need to hire internationally."

Richard Gödel, entrepreneur

What are the challenges of international expansion for legal tech startups?

Of course, going global isn’t without its hurdles. Here are the key challenges legal tech startups face when expanding abroad:

Regulatory complexity

Every country has its own set of legal frameworks, which makes scaling legal tech more complex than in other sectors. Navigating regulatory requirements such as GDPR in Europe or data privacy laws in different regions can be tricky.

For example, legal tech companies providing contract analysis must ensure compliance with local data protection laws, which vary across jurisdictions.

​​Cultural differences

Understanding and adapting to local cultures and languages is crucial for any business looking to expand internationally. For legal tech startups, these barriers can be even more pronounced, as legal terminology and the nuances of legal practice can vary widely. This necessitates localized versions of their technology and possibly hiring local experts who can bridge cultural gaps.

Talent acquisition

Finding local experts with both legal and tech knowledge can be tough. In markets like the US and UK, there’s already a shortage of legal tech talent. This makes hiring specialized roles like AI engineers, legal consultants, and regulatory experts challenging.

​​Intellectual property issues

Protecting intellectual property (IP) in multiple jurisdictions can be a complex and costly process. Legal tech startups need to secure their innovations through patents, copyrights, and trademarks, which involve navigating the IP laws of each country they enter. This is crucial to preventing infringement and ensuring that their innovations remain proprietary.

High costs and resource allocation

Expansion can strain cash flow, especially when investing in new offices, hiring, and marketing. Startups must carefully manage their cash reserves and forecast expenses to avoid financial issues during expansion.

Currency and tax complexities

Managing payments in different currencies and complying with international tax laws can quickly become overwhelming without the right systems in place. Payment processors typically charge transaction fees, which can be a significant burden on startups with tight budgets. Fees for cross-border transactions or currency conversions can further increase costs.

How to streamline your legal tech startup expansion strategy

To expand internationally with minimal friction, legal tech startups can follow these strategies:

Research and adapt. Conduct in-depth market research for each target country to understand local regulations, customer needs, and competitive landscapes. Tailor your product to meet these local requirements while maintaining the core value of your solution.

Leverage partnerships. Partnering with local law firms, legal associations, or tech providers can help you gain market insights, credibility, and easier entry. Strategic partnerships can also accelerate adoption by leveraging local expertise.

Hire local talent. Build a local team with expertise in both the legal system and the market. This can help you navigate the complexities of the legal industry and ensure your offering is culturally and legally relevant.

Stay compliant. Ensure you have robust systems in place to manage data privacy, IP protection, and labor laws. Compliance with regulations like GDPR and local labor laws is critical to avoid penalties.

Use a global employment partner. Managing legal compliance, payroll, and HR across borders can be simplified by using a global employment partner like Remote, which can help you stay compliant and focus on scaling.

Whether you're hiring a contractor or building a team across multiple countries, Remote offers scalable solutions to meet your needs as your business grows. Let’s discuss this in further detail below.

Global HR —

5 min

EOR, Payroll, or both: What does your business need?

Understand the difference between EOR and payroll services — and clarify which one your business needs to pay your international team members.

How to make legal tech international expansion simple

Expanding internationally can be complex, but Remote makes it simpler. By acting as an Employer of Record (EOR), Remote takes care of the legal and compliance work, so you can focus on growing your business. 

Remote’s EOR services offer all the tools you need to manage critical HR functions like onboarding, payroll, taxes, benefits, and day-to-day HR tasks. Remote enables companies to expand internationally with ease by streamlining hiring, compliance, payroll, and HR management. This allows businesses to scale quickly, stay compliant with local laws, and focus on growth without the logistical challenges of global expansion.

Remote can help legal tech startups:

Navigate local labor laws and compliance

Remote’s team of employment experts ensures compliance with local labor laws, tax regulations, and industry-specific guidelines. This allows startups to operate confidently in new markets without the risk of non-compliance penalties, which can be costly and damaging. Remote’s Watchtower service can help you stay on top of evolving laws and can help you manage labor law and HR compliance.

Simplify the hiring process Remote’s all-in-one global HR platform manages the entire employment lifecycle, from hiring to onboarding, to contract renewal and termination. This helps companies quickly secure top talent worldwide without needing to master intricate local employment laws and practices. 

Check out our free Employee Cost Calculator to help you work out hiring costs in your country of choice.

Manage global payroll Paying employees in multiple countries involves navigating different banking systems and local financial landscapes. Remote can help legal tech companies manage global payroll by ensuring efficient payments in local currency, making the right tax deductions, and ensuring compliance with local tax laws. Remote’s platform also allows you to automate invoices, manage expenses, generate reports, and run payroll, from one place.

Learn more about managing global payroll in our expert guide.

Protect intellectual property (IP) When hiring internationally, protecting your company’s intellectual property is essential. Remote provides legal protections and contract agreements that protect your IP and proprietary technology, even when employing remote workers across borders. 

Remote offers robust, industry-leading IP protection designed to safeguard your IP. Learn more about Remote’s IP Guard.

Hire contractors for flexibility In addition to full-time employees, companies can also hire independent contractors across different countries for specialized skills or short-term projects. This flexibility allows you to scale up or down depending on project needs, enabling you to hire top talent for specific tasks. Whether you want to hire software developers, technical writers, or legal consultants, — you can easily hire, pay, and manage contractors compliantly using Remote Contractor Management. 

“Working with contractors allows us to test a new market, or bring a new addition into the team quickly. We’re not stuck in a situation if we need to change focus. That agility is so important to our growth."

Li-ran Navon, entrepreneur

International legal tech startup expansion made easy with Remote

Legal tech startups face unique challenges when expanding globally due to complex and varied legal systems across countries. They must navigate differing regulations around data privacy, intellectual property, and legal practices — all of which require deep local expertise. 

Remote's comprehensive global HR solution is designed to support you in overcoming these challenges. Our service supports you at every stage, enabling you to recruit, manage, and manage top talent while ensuring compliance with evolving labor and tax laws.

Whether hiring a single employee in a new country or assembling a team across several regions, our platform can support you with every aspect of global employment — hiring, onboarding, benefits, taxes, payroll — from one platform. Additionally, our team of in-house experts is always ready to support you when needed.

Whether you're just starting out or rapidly expanding, Remote grows with you, providing the essential infrastructure to manage multi-country teams effortlessly and confidently.

Expand your legal tech startup and manage your global team efficiently and confidently with Remote. Contact our friendly experts to learn more about expanding your legal tech startup today!