The real cost
of opening
an entity

Trying to decide between partnering with an EOR like Remote or going it alone? Keep reading.

Remote*

Creating your own legal 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

$299-$599 per employee, per month; no hidden fees, deposit requirements, or surprise transaction costs

5-figure amounts yearly for 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.

Creating your own legal entity

Cost to establish entity

$25,000-$100,000+

Capital requirements

Often 5-figure amounts

Time to incorporation (ability to hire in country)

5-12+ months

Local bank account setup

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

Project management

In-house role required to create and manage entity

Personnel

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

Local directors

Certain countries require local directors, with applicable fees and compensation

Ongoing maintenance fees

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

Payroll services

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)

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 information is based on Remote setting up its own entities in the countries where we operate and hire. Each country is different and details may vary from the information provided here.

Get started with Remote
Real-world example

Creating your own entity in Sweden

This does not include ongoing maintenance costs or the costs for internal personnel (e.g. Project Manager, Senior Business Leader, Legal Counsel, Finance or Treasury Leader, Visa Sponsorship Expert, Payroll Specialist, Benefits Specialist, Compliance Specialist).

Type of Cost
Description
Approximate Cost
Type of Cost

Preparation

Description

Includes memorandum of advice

Approximate Cost

€11,000

Type of Cost

Incorporation

Description

Includes domiciliation, directorship services, bank account setup, company secretary services, share capital, trade licenses and permits, notarization and other general administrative costs

Approximate Cost

€38,500

Type of Cost

Contracts Creation

Description

Includes customization of agreements (SLAs, EAs) and termination documents

Approximate Cost

€30,500

Type of Cost

Registrations

& Licenses

Description

Includes tax and employment registrations

Approximate Cost

€3,500

Type of Cost

Business Operations

Description

Mailbox and mail forwarding, ongoing compliance filings, tax document preparation and filings

Approximate Cost

€6,000

Type of Cost

Payroll & Benefits

Description

Establishing the ability to offer benefits and run payroll

Approximate Cost

€4,000

Total cost
93,500

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