The real cost
of opening
a business entity
Trying to decide between partnering with an EOR like Remote or doing it on your own? Keep reading.
Remote*
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
$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 business 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 business entities in the countries where we operate and hire. Each country is different and details may vary from the information provided here.
Creating your own business 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).
Preparation
Includes memorandum of advice
€11,000
Incorporation
Includes domiciliation, directorship services, bank account setup, company secretary services, share capital, trade licenses and permits, notarization and other general administrative costs
€38,500
Contracts Creation
Includes customization of agreements (SLAs, EAs) and termination documents
€30,500
Registrations
& Licenses
Includes tax and employment registrations
€3,500
Business Operations
Mailbox and mail forwarding, ongoing compliance filings, tax document preparation and filings
€6,000
Payroll & Benefits
Establishing the ability to offer benefits and run payroll
€4,000
