HR international expansion guide
Go global with speed and security
Expanding internationally can be demanding but highly rewarding for businesses that want to reach new markets and hire exceptional people. Navigating fresh regulations, cultural differences and admin can, however, add risk and cost.
As a leading global HR platform with firsthand experience of international growth, we can give you all the tools to manage those obstacles. We also provide guidance to inform decisions and help you get the best value from your resources as you enter new markets.
When we talk about growing internationally, we speak from practical experience. We have built and scaled a team of over 1,000 people across more than 70 countries and support customers on every continent. We understand what it takes to expand successfully.
What you'll learn in this guide
In this guide, we will draw on that experience and share practical advice and tactical insights. You will get tested recommendations not only for entering markets, but for scaling in a sustainable way that supports long-term success.
Specifically, we will:
Discuss how to nurture a strong global presence
Explore localised strategies that shield your business from cultural and regulatory pitfalls in new markets
Introduce the core principles of sustainable expansion
Highlight the tools and processes that can simplify the whole journey
Table of contents
What is international expansion?
Effective expansion strategies
Building an international team
What is international expansion?
International expansion means extending your company’s operations from the domestic market into a foreign market, enabling your organisation to broaden its reach.
Hiring people overseas is typically central to a global expansion plan, because the right hires provide a strong foundation and local market knowledge that is hard to replicate.
Expanding into foreign markets can feel intimidating for any business, especially small and medium enterprises. The process may be complicated, lengthy and full of unexpected risks. But with the right approach and tools, the potential rewards can be substantial. What does international expansion look like?
Historically, expansion required setting up legal entities in the countries you targeted. Today, firms are increasingly considering alternative, more cost-effective routes to grow internationally.
Crucially, international expansion is no longer just for large incumbents; modern connectivity and technology make it practical for small businesses to operate across borders.
“Despite an uncertain economic outlook, 72% of global businesses are planning ambitious expansions into new markets, supported by major investments in digital technologies.” Equinix Global Tech Trends Survey 2023
4 ways to expand internationally
No matter your company’s size, there are several routes to international expansion. These include:
Exporting
Exporting means selling your products or services to customers in other countries, either physically or online.
Exporting can take many forms, including international ecommerce. With global payment providers and storefront platforms like Amazon, Shopify and BigCommerce, you can sell worldwide without needing a local physical presence.
Licensing
Licensing is when you grant another company the right to use your intellectual property—trademarks, patents or copyrights—in return for royalties or fees. It lets you extend your brand into new markets without operating there directly.
This can work well if you own IP—like software or a technology—with multiple use cases, or if your brand already has recognition.
Acquisitions and mergers
Buying or merging with a foreign company is another well-used route, and cross-border M&A has grown strongly in recent years.
This trend highlights the strategic value of acquiring or merging with established firms to gain market access, technology and customers.
Joint ventures and strategic alliances
Joint ventures and alliances are formal partnerships between companies in different countries aimed at accessing resources, expertise and new market reach. An alliance can help you enter markets, share risk and combine complementary strengths.
Unlike a merger, the aim is to form a mutually beneficial partnership—often between organisations in different sectors.
Direct investment
Direct investment means putting capital into a foreign company to gain some control over its management or operations.
Some investors take this further by establishing a local presence, like a subsidiary or branch. That gives you more control over operations in the new market.
This path is growing in popularity, with more businesses increasing investment in underdeveloped regions such as Africa, southeast Asia and Latin America.
“Emerging economies — which once represented no more than 15% of the global economy — now account for nearly 50% of economic activity.” Mauro F. Guillén, BBVA
What are some effective international expansion strategies?
Your global expansion plan should act as a roadmap for scaling. It needs to set out the concrete steps your company will take to meet its expansion goals and act as a guiding north star.
“In recent years, bold global expansion could have been seen as too risky or too dependent on capital investment in physical infrastructure. Now, things have changed.” Karl Strohmeyer, Chief Customer Officer at Equinix
International expansion strategies typically follow one of three approaches:
International strategy
With this approach, you export products or services to overseas markets while keeping production in your home country. It lets you leverage existing production capabilities to serve international customers.
Exporting means you can meet international demand without local manufacturing, allowing a consolidated growth approach that builds on your existing strengths.
This route is commonly chosen by small businesses and startups.
Multinational strategy
A multinational strategy means operating in several countries and adapting your offerings to local markets, acknowledging different preferences, cultural norms and regulations.
To serve these markets better, your company may:
Modify your products or services to meet local demand
Tailor your marketing and communications
Set up local production or distribution facilities
This strategy focuses on meeting the distinct needs of customers in different countries while maintaining a global footprint.
Global strategy
A global strategy treats the company as a single unit offering standardised products or services across countries. The emphasis is on uniformity rather than adaptation, driving economies of scale and efficiency.
This approach simplifies operations, centralises decision-making and builds on global brand recognition.
It is usually favoured by larger, well-established companies.
Do you need a legal entity to expand internationally?
Not always. It depends on your company’s aims and resources.
For some firms, setting up a legal entity is the right play. If you have the budget and time, and it aligns with your goals, it can deliver long-term benefits.
For most companies—especially startups and small businesses—creating entities in multiple countries is impractical.
Beyond the resources required, forming a legal entity is a major commitment. If plans change or you need to pivot, that investment could be wasted—and you may face complex legal processes to dissolve the entity.
With a global HR partner you gain flexibility and reduce commitment. For example, you can test a region by working with independent contractors first; this lets you hire quickly overseas while making it straightforward to withdraw if needed. Remote’s Contractor Management platform lets you hire, onboard, and manage contractors simply and cost-effectively.
If the market test goes well and you want to hire employees as you grow, you can use an employer of record (EOR) service—such as the one offered by Remote. An EOR lets you legally employ staff overseas without the time, cost, and complexities involved in setting up an entity. That makes it quicker and compliant to scale hiring across multiple markets. As you expand, you can also draw on Remote’s localised HR, tax, benefits and payroll expertise. This saves you time sourcing local providers and helps ensure compliance with labour and tax rules.
We will explain how this works in more detail below.
What is the best time for international expansion?
Timing matters when entering a new market. But how do you tell when it is the right moment to expand?
Here are some signs that it might be time to look beyond your borders:
If your domestic market is saturated and growth opportunities are limited, it could be wise to pursue international expansion. Make sure your core business is stable at home before branching out.
A strong volume of orders or enquiries from a particular foreign market can signal a clear opportunity to expand in that region.
If research shows high demand, low competition or supportive economic and regulatory conditions in a foreign market, that could indicate a good time to expand.
If your business offers a unique product, service or technology that would give you an edge abroad, it may be smart to capitalise on that through expansion.
If you can readily adapt your offering to suit a foreign market and there is clear demand, your chances of success overseas improve.
Hire anywhere with Remote's EOR
Whether you need to hire one international worker or thousands, Remote has the experience, infrastructure and expertise to help. Our leading employer of record services deliver a world-class experience for your global team—plus predictable pricing, legal protections and peace of mind for your organisation.
There are many reasons to consider going global, for example:
Talent acquisition
One major benefit of international expansion is the ability to tap into new talent pools.
Hiring overseas gives you access to fresh skills and perspectives and improves diversity and inclusion. A prominent McKinsey study found diverse teams are 33% more likely to outperform their peers.
Hiring international talent can also be cost-effective, especially where team members work remotely.
Remote can help you find top talent in overseas markets, and hire, onboard, and manage them quickly and easily.
Brand exposure
Expanding internationally raises your profile in new markets, helping you reach a wider audience and build trust and recognition, which can lead to higher revenue.
Happier employees
When you hire around the world, employees often appreciate the flexibility of remote work and the associated benefits. In our Global Benefits Report we found that 78% of remote workers were more satisfied with their benefits, compared with 60% of on-site employees.
Higher engagement improves retention and makes companies more agile. In our 2023 Remote Workforce Report, 72% of companies reported improved productivity after adopting a remote, distributed workforce model.
Increased revenue
Global expansion opens new markets and customer segments, creating additional revenue streams. It can also help you outperform competitors—companies that expand internationally generate an extra 1.9% in annual shareholder returns over firms that don’t expand.
McKinsey also found that firms already growing strongly at home gain even more from expansion, achieving an additional 2.6% in annual returns.
Potential cost savings
Alongside higher revenue, expansion can reduce costs. If you enter a market with lower costs for resources, materials or salaries, you can benefit from those savings.
Localised insight
Expanding into new markets requires local knowledge. Without it you risk alienating or even offending local customers and partners through avoidable communication errors or deeper cultural mismatches. You may also be unfamiliar with local business processes, costing you time and money.
Hiring people on the ground with cultural awareness can help you avoid these issues. Whether you engage consultants or hire permanent staff, Remote can help you find and recruit the right person.
“Hiring international employees gives your company a soft landing when entering new markets and allows you to build trust quickly in new places.” Job van der Voort, CEO and co-founder of Remote
Competitive advantage
Entering a new market before competitors can secure brand recognition and credibility. Being first can offer a meaningful competitive edge.
Even small and mid-sized businesses can make significant impact if they have the right product for the right market.
Market protection
A global presence helps you leverage differing trends and preferences to diversify revenue streams and reduce exposure to localized downturns.
Operating across markets can offset a recession in one country with stronger performance elsewhere, helping preserve overall business stability.
This supports business resilience during tougher economic periods.
Customer support coverage
If you have many customers in a region or who speak a particular language, expansion allows you to support them more effectively.
You can hire local support specialists who understand the language and culture, creating a smoother experience. This approach scales so you can provide knowledgeable local CS teams in each country.
Strategic partnerships and collaborations
Expanding globally gives you a platform to form strategic international partnerships that would otherwise be hard to reach.
These relationships can spur innovation and open new markets or improve efficiency through knowledge and technology transfer.
What are the challenges of international expansion?
International expansion brings many benefits but it is not straightforward. Even with favourable conditions, success is not guaranteed, whatever your sector or company size.
The data underscores this: companies expanding abroad can see a return on assets (ROA) averaging of -1% for up to five years, and only around 40% beat a ROA of 3% or more.
That is why understanding common pitfalls—and how to mitigate them—is essential. Below are key challenges you are likely to encounter.
Local legislation and regulations
Failing to follow local labour and tax laws can lead to fines, legal action or restrictions on trading. Navigating foreign legal systems can be complex, time-consuming and frustrating—especially where rules change frequently.
That is why it is highly advisable to work with an experienced global HR partner. Remote helps ensure compliance with labour and tax laws wherever you hire, letting you focus on operations and growth.
“Remote provides all the local compliance and regulatory knowledge for each specific country in-house. Without them, we would have to hire an additional 3 or 4 people to be able to cover all the local labor laws, taxes, accounting, translation, and payroll responsibilities.” Mona Walther, Senior People Operations Manager at commercetools
Check out our Country Explorer tool to see available countries and roadmaps.
Market differences
Many firms err by simply copying what worked at home. Foreign markets need a deeper understanding of local dynamics, customer preferences and cultural nuances.
For example, many fintech companies are expanding globally; they tend to focus on engineering and product development.
However, they may lack experience in planning cross-border go-to-market strategies or selecting the right campaigns, channels and messaging. That is why it is important to hire the right people who understand your new market.
Cultural differences
Cultural differences affect communication styles, negotiation and people management. A lack of cross-cultural awareness can cause misunderstandings, damaged relationships and failure.
Hiring local employees gives you deep cultural insight and networks that help you navigate the business environment and make better decisions.
Competition in foreign markets
Foreign markets can be fiercely competitive with local and international players vying for share. Understanding the landscape and differentiating your offering is vital.
Global competition has increased rapidly, so a clear competitive strategy is essential when expanding overseas.
Time and money
International expansion usually requires significant upfront investment, including:
Legal and regulatory compliance
Establishing local operations
Developing distribution networks
You may also need to invest time and money to build relationships with local partners and to recruit and train a local workforce.
These costs add up. For example, setting up legal entities can take up to 12 months and cost over $100,000 USD per location, depending on local requirements and ongoing administration.
To avoid these expenses, consider an expansion partner such as Remote. With our EOR services, you can hire in multiple countries without creating a single entity—and you can be operational in days.
To learn more about how an EOR works, read our in-depth guide.
Logistical issues
Depending on your offering, logistics—transport, supply chain and customs—can be major obstacles. Moving goods across borders needs careful planning to keep operations efficient.
You need an effective distribution network and resilient infrastructure to deliver products and services to customers.
Banking and currencies
Expansion brings multiple currencies, banking systems and financial rules. You must manage foreign exchange risk, set up banking relationships and handle international payments correctly.
You also need a plan for paying employees and contractors in new countries. Remote can simplify this through our EOR, centralised payroll or contractor management services.
How to pay your global employees
Global Payroll How to pay international employees
Data regulations
Data rules vary by country and are often complex; they affect how you store and handle data across borders.
It is essential to stay current with data regulation changes to reduce compliance risks and protect your organisation.
Data security for distributed teams
Data Security & IP [Webinar Recording] IP protection and data security for distributed teams
IP protections
Protecting your products, ideas and branding is crucial when entering new markets. Securing patents, trademarks and copyrights where relevant helps safeguard your IP.
You must also plan to prevent IP theft or copying in line with local laws, and know how to address legal disputes in the appropriate courts.
Remote can help you protect your IP when working with employees and contractors overseas.
Cybersecurity breaches
Cybersecurity incidents are common worldwide, and the fallout can be severe. IBM reports the average cost of a data breach in the US in 2022 was $9.5 million USD.
Protecting your business from cyber threats and data leaks is challenging, especially when expanding internationally. Different regions have different rules and you must keep up with them.
Cross-border data transfers are risky and securing remote employees and their devices is complex—especially if staff use personal devices for work.
You need to train employees in good security habits and use current tools and best practices to maintain robust defences.
If you choose a global HR partner, confirm their security meets your standards. Remote, for example, uses enterprise-grade data protection and has a dedicated security team available to support you. Learn more about Remote’s security protocols.
What are the key steps in international expansion?
Now that you understand the benefits and risks, what does a practical expansion plan look like?
International expansion is more than planting a flag; it requires market insight, local relationships and careful navigation of cultural and regulatory nuances.
Below is an outline of the steps you might take—and how Remote can assist.
Take the time to understand the new market’s dynamics. Analyse data, run assessments and gain a clear view of consumer behaviour and preferences.
Study market trends and evaluate growth potential, taking macroeconomic and demographic factors into account.
Assess barriers to entry—culture, language and regulation—and plan how to address them or decide whether the market is worth entering. Identify your preferred mode of entry, weighing resources and risk tolerance. Each option—exporting, licensing, merging or direct investment—has trade-offs, so clarify your risk/reward threshold.
For example, exporting can be lower risk but offers less control, while licensing may grant fast access but present quality or brand risks. Make sure you document your plan formally.
After research and selecting an entry route, you need an expansion plan that acts as your roadmap and covers areas such as:
Financial plan : Consider your budget for market entry and ongoing operational costs. Factor in exchange rates and potential financing options that may affect capital structure and cash flow.
Set realistic revenue and profit projections based on your market research and model multiple scenarios—optimistic and pessimistic—to set clear financial goals.
Risk assessment: International expansion carries risks—from political instability and economic swings to cultural gaps and compliance issues. Conduct a thorough assessment to gauge the likelihood and impact of each risk on operations, finances and reputation.
Once risks are identified, develop mitigation and contingency plans so your business can continue to operate or recover quickly. Robust risk measures make your expansion resilient, flexible and adaptable.
Infrastructure and logistics plan: Depending on your business, plan for infrastructure and logistics needs—both physical and digital.
This may involve mapping your supply chain, logistics and transport processes to ensure smooth operations for all stakeholders.
This stage prepares you for market entry and may include:
Securing final funding
Preparing digital and/or physical infrastructure
It is crucial to understand legal and regulatory requirements to avoid fines and reputational damage. Know the employment laws, IP rules and tax obligations in the new country, and the process for opening an entity.
You can hire local lawyers and tax specialists, but this consumes time and money. Using an EOR like Remote is often faster and more cost-effective, as we handle the legal work for you.
This approach enables you to start hiring the people who will drive expansion within days.
This phase establishes your presence in the market—opening an office or hiring local staff and ensuring on-the-ground resources for effective operations.
You will also roll out your marketing strategy to build brand awareness and attract customers.
Once established, focus shifts to scaling operations and expanding your customer base. This involves continuous marketing, acquisition and retention efforts, with attention on performance metrics and return on investment (ROI).
At maturity your business will have an established market presence. The focus is on continuously improving operations and refining products or services based on customer feedback and market trends to remain competitive.
HR considerations when expanding internationally
Building your team
Arguably the most important factor for expansion success is your people.
“We know that the success or failure of our company is 99% down to our people. So being able to attract and then retain the best talent is vital to our success."
-Antonio Arias, Chief People Officer of QuoIntelligence
When entering a new market you must understand local workforce expectations and culture, including salary and benefits norms, and differences in labour law such as minimum wage, overtime and working hours.
With Remote you do not have to worry. Our all-in-one platform supports every step of the cycle so you can focus on the business. Here is how it works:
Recruitment
The first step is finding the right people. Use local job boards, social channels and referrals to source candidates.
You can also use Remote Talent to fill hard-to-staff roles; our remote jobs board opens access to global candidates.
Using our EOR service you can offer the best local benefits, which helps attract top talent.
Hiring
Once you have a candidate and an offer, you can hire quickly via our EOR service or, for contractors, via our Contractor Management service.
This is useful in a new market because it lets you test demand with independent contractors before committing. You can convert contractors to employees with us too, helping you avoid accidental misclassification of your people.
“Companies are increasingly recognising the benefits of using skilled freelancers on a project basis, providing expertise without long-term commitments. This trend is not limited to Western countries and is also growing in developing nations.”
-Pedro Barros, Senior VP and GM for Contractors at Remote
Onboarding
Onboarding is one of the most sensitive phases of a hire’s lifecycle. A poor experience can cause a new hire to reconsider and may lead to losing them early.
When you hire through Remote’s EOR, the new hire gets a welcoming, personalised onboarding and step-by-step support. We make the process fast, simple and compliant, and assign a dedicated HR manager.
This support applies to contractors as well; we ensure compliance and offer expert guidance throughout.
"With Remote, onboarding contractors is seamless: it literally takes seconds to add new people to the platform, issue their contracts, and request the ID documents necessary for them to get started."
- Erik Sveen, Founder and CEO of HomeProject
Payment
Paying staff and contractors can be secure, simple and fast. Wherever your workforce is based, Remote streamlines payroll and lets you run it in minutes.
If you use our EOR, payroll is integrated: we calculate wages, withhold required taxes and ensure timely payment. We also provide in-house payroll support for any queries. Learn more about EOR payroll management.
If you open your own legal entity in a new market, we can also provide payroll as a standalone service. Learn more about Global Payroll.
You can also manage and pay contractor invoices with a few clicks—in multiple currencies. Learn more about paying independent contractors.
Managing team members
Managing day-to-day HR for your international team is straightforward with Remote. We offer a fully free HRIS that consolidates your HR tools and centralises processes. Employees can self-serve tasks like time and attendance, expense claims and document access.
"The HRIS platform is easy to use and everything is there right in front of us. It all comes together and we’re not having to update different sources. That helps us be more efficient, which is so important in a scale-up."
-Bas Moeyaert, Loop Earplugs
Scaling
The advantage of expanding with Remote is there are no limits: our platform and services scale with you worldwide. As you grow, you won’t need to change providers or alter processes—something smaller local providers often cannot offer.
Whether it’s recruiting, hiring, onboarding, paying or managing, we can support every element of your global HR—from your first hire to your thousandth and beyond.
Examples of successful international expansion
Remote has supported organisations of all kinds to expand internationally, including:
Loom
Loom, a leading video communications platform, used Remote’s global infrastructure to grow teams in multiple countries.
With remarkable 900% year-on-year growth in 2021, Loom relied on a global talent pool to meet demand, though hiring internationally introduced complexity.
With 15 people across 11 countries, Loom’s HR team found it hard to keep up with local hiring rules and creating international hubs was impractical.
Remote provided coverage where Loom had employees and entities, offering transparent costs via its EOR. This enabled Loom to convert contractors into employees and improve the experience for its workforce.
As we continue to scale and go forward, we can now provide employees the opportunity to relocate through Remote and hire great candidates through Remote.
Loom unlocked access to diverse talent while ensuring compliance with local laws. This helped the company grow and improved the employee experience.
Primer
Primer, a prominent fintech company, used Remote’s infrastructure and expertise to manage the complexities of international hiring.
Recognising the power of remote work, Primer aimed to tap global talent but faced challenges in expanding across jurisdictions.
Partnering with Remote gave Primer the tools to hire internationally, with Remote’s EOR providing fair and transparent costs and ensuring compliance so Primer could focus on its fintech mission.
I wasn't confident with the other EORs that we use, which is a dangerous game, because that puts more stress and pressure on our team to provide the follow-up. One of the biggest things Remote did was create this environment where you became an extension of our team, really followed up and overcommunicated in a lot of ways. That was vital for us, because it alleviated some of that responsibility from our team internally. -Erin Potter, Head of People & Operations at Primer
Primer converted contractors into full-time employees, creating a more consistent experience and successfully expanding its team across borders while maintaining employee satisfaction.
Read more about Primer’s story.
Seatti
Technology company Seatti partnered with Remote to transform its approach to global talent acquisition and management.
Like many companies, Seatti wanted to grow by hiring in new markets but found global employment complexity a barrier.
With Remote, what caught our eye is the fact that you have your own legal entities in so many countries around the world. A lot of other similar providers that we looked at often just did it through partnerships. I think the growth and traction of Remote probably also speaks for itself and gives a strong indication that you're doing a lot of things right. -Chris Bieri, Co-founder of Seatti
Remote’s EOR service ensured Seatti complied with local laws, helping it expand its team across borders while fostering innovation and diversity.
Read more about Seatti’s story.
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Expand internationally with Remote
As shown, international expansion brings many opportunities but also a range of challenges.
Remote’s all-in-one global HR solution is designed to help you manage these challenges at every stage. We help you consolidate and grow in new markets by hiring, managing and paying top local talent while staying compliant with changing labour and tax laws.
Whether you need to hire one employee or contractor in another country, or hundreds across many countries, we provide everything in a single streamlined platform. And our local experts are available whenever you need guidance.
To learn more about our platform and how it can help you expand your business, book a demo or speak to one of our friendly experts today.