The true cost of opening a business Entity
Undecided whether to partner with an EOR such as Remote or to manage it yourself? Continue reading.
Creating your own legal business entity
(Per Country)
Cost to establish entity
$0
$25,000-$100,000+
Capital requirements
$0
Often 5-figure amounts
Time to incorporation (ability to hire in country)
Immediately
5-12+ months
Local bank account setup
Not required
Requires in-depth documentation and validation; in-person visits are often required
Project management
Not required
In-house role required to create and manage entity
Personnel
Leverage your existing HR team
Setup and management time and effort is minimal
Significant time and attention required from executive, human resources, finance, and legal teams, as well as external attorneys, tax advisors, and accountants
Local directors
Not required
Certain countries require local directors, with applicable fees and compensation
Ongoing maintenance fees
$699 per employee per month
No hidden fees, deposit requirements, or surprise transaction costs
5-figure amounts yearly
Accounting, payroll, compliance, local taxes, and more
Payroll services
Included in ongoing maintenance fees
Often involve setup fees and monthly costs required of a third party payroll provider
Required and supplemental benefits (e.g. insurance, retirement savings, paid time off)
Plug employees into Remote's group benefits plans at reduced rates
Enriching your job listings and offers
Frequently changing local regulations and lack of knowledge around social norms in a country make it difficult to offer employees the benefits they want and need, and low headcount in a given country drives up costs.
*This guidance reflects Remote’s experience establishing its own business Entities in the jurisdictions where we operate and hire. Local rules vary, so the particulars here may differ from country to country.