The real cost of opening a business entity

Creating your own legal business entity

$25,000-$100,000+

Often 5-figure amounts

5-12+ months

Requires in-depth documentation and validation; in-person visits are often required

In-house role required to create and manage entity

Significant time and attention required from executive, human resources, finance, and legal teams, as well as external attorneys, tax advisors, and accountants

Certain countries require local directors, with applicable fees and compensation

5-figure amounts yearly for accounting, payroll, compliance, local taxes, and more

Often involve setup fees and monthly costs required of a third party payroll provider

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.