Last Updated on November 28, 2025 by Admin
It is quite a complex process when presented with the opportunity to expand into a new country.
It’s necessary to be compliant with unfamiliar regulations while at the same time working fast when hiring the right talent when entering a new country.
It often creates more obstacles than solutions when following the traditional routes of opening foreign subsidiaries.
To streamline international hiring and operations, organizations turn to Employer of Record (EOR) services, especially if they are in the project-driven sector.
Why do Companies Expanding Internationally Need Smarter Hiring Models?
Global talent is increasingly depended upon to execute projects across continents, especially in industries like engineering, energy, infrastructure, and construction.
When a project is in a country other than the business’s headquarters, technicians, skilled workers, and specialists are needed where the actual project is taking place.
This is exactly where minimal friction is needed for companies to hire quickly, deploy teams internationally, and manage the mobility of their workforce.
It is not, however, practical to set up a foreign subsidiary in every new country.
The process is usually legally speaking complex, slow, and costly.
There are many administrative burdens that can drain resources or delay projects, because companies have to navigate tax filings, local labor laws, and business registrations.
Smart solutions are offered by Employer of Record (EOR).
There is no need to establish a local entity when an EOR acts as the legal employer on behalf of the company, regarding fast, compliant hiring anywhere in the world.
This model provides the agility modern global operations demand when speed and flexibility are needed with project-based industries.
What Is an Employer of Record (EOR)? A Simple Explanation?
Services are provided by Employer of Record to employ workers on behalf of a company in a foreign country.
For construction and other project-based sectors that need to deploy staff quickly without establishing a physical presence, this model is particularly useful and practical.
While the company controls the day-to-day work of the employee, practically speaking, the EOR becomes the legal employer.
They take care of:
- Payroll processing
- Employment contracts aligned with local laws
- Compliance with labor regulations
- Tax withholdings and mandatory benefits
- Employee onboarding and HR documentation
This makes global hiring as simple as hiring locally.
When needing to immediately onboard workers without opening a subsidiary, companies can use an Albania employer of record or an employer of record in the Dominican Republic.
Reason #1: Faster Market Entry Without Legal Delays
The speed at which you can enter a market is the biggest advantage of EOR services.
It often takes several months and involves legal registration, corporate documentation, bank approvals, and the appointment of local representatives when opening a foreign subsidiary.
Meanwhile, this can interfere with project deadlines.
One can almost start hiring immediately with an EOR; in fact, it might be within days or months in Albania or the Dominican Republic.
This speed can be the difference between winning or losing a project in the construction or engineering sectors that need to mobilize teams for overseas contracts.
Reason #2: Major Reduction in Administrative and Compliance Burden
Continuous administrative effort is required to maintain a subsidiary.
Tax reports have to be filed, payroll managed, accounting records maintained, employment documentation has to be submitted, and a variety of local laws have to be complied with by these companies.
It all adds to operational costs, as these responsibilities typically require in-country HR and legal expertise.
An EOR assumes full responsibility for employment compliance, which includes ensuring adherence to labor regulations, drafting locally compliant contracts, managing payroll taxes, and handling benefits.
In some countries, such as Albania or the Dominican Republic, where local requirements can be nuanced and ever-changing, this is particularly valuable.
Companies no longer need to navigate foreign regulatory systems, dramatically reducing administrative strain with an EOR.
Reason #3: Lower Costs Compared to Entity Setup and Maintenance
It is very expensive and time-consuming to set up a subsidiary.
Typical costs include:
- Legal fees for entity registration
- Corporate tax obligations
- Required local directors or representatives
- Office registration and local administrative staff
- Annual audits and compliance filings
For project-based or temporary workforce needs, these expenses rarely make financial sense.
Nearly all the setup and maintenance costs are eliminated by EOR.
What makes the model ideal for construction teams that expand and contract based on the project cycle is that companies only have to pay for the employees they hire.
Businesses can allocate resources directly to project execution instead of investing heavily in short-term assignments and infrastructure. Â
Reason #4: Better Risk Management and Local Legal Protection
A company assumes full legal responsibility and risk in a foreign country when establishing a subsidiary.
This includes handling employee claims, labor law violations, civil disputes, back-tax assessments, and misclassification penalties.
When a market has an unfamiliar legal framework, the risk is amplified.
Protection from EORs provides:
- Employment contracts meet local standards.
- Payroll is correct and compliant.
- Taxes and social contributions are properly handled.
- Terminations follow lawful procedures.
It helps companies to navigate unique labor practices and mandatory employment terms when they, for example, hire through an Albanian employer of record.
In a country well known for strict employment protections and formal hiring requirements, using an employer of record in the Dominican Republic ensures compliance.
Companies gain confidence and reduce legal exposure by transferring employment risk to a professional third party.
Reason #5: Flexibility for Short-Term Projects and Regional Hiring
Project-driven industries often operate across multiple countries simultaneously.
A firm may have a six-month project in the Balkans, a one-year engagement in the Caribbean, and ongoing maintenance operations elsewhere.
It is not just impractical but also unnecessary to set up a subsidiary in every market.
There is no need to establish a long-term infrastructure when an EOR makes it possible to hire workers per project, per region, or even seasonally.
It’s ideal for flexibility regarding:
- Seasonal construction cycles
- Field engineering teams
- Offshore or remote projects
- Rotating workforce requirements
Teams can be scaled up or down by companies based on project timelines, purely because of EORs
How Rivermate Makes Global Hiring Efficient and Compliant?
For companies expanding into dozens of international markets, Rivermate is the ideal modern Employer of Record designed for exactly that reason.
With their platform built around transparency, compliance, and speed, it simplifies global hiring.
Rivermate supports:
- An HR compliant and fully managed payroll.
- Markets like Albania and the Dominican Republic, with their country-specific expertise
- Technical and construction workers’ fast onboarding
- No hidden fees with clear pricing
- Employment compliance across all supported
Rivermate enables companies to build teams anywhere without the cost and burden of opening subsidiaries by handling the complexities of global employment.
When to Choose an EOR Over a Subsidiary: A Quick Decision Guide?
Choosing an EOR is ideal when your company is:
- Testing new international markets
- Hiring between 1 and 20 employees
- Mobilizing teams quickly for overseas projects
- Running short-term or rotating construction operations
A full corporate presence is strategically necessary for long-term, large-scale, or permanent operations, which makes it worth opening a subsidiary.
Conclusion: The Future of Global Expansion Is Lean, Compliant, and Subsidiary-Free
It’s an unnecessary risk for companies operating on a tight timeline to have a foreign subsidiary, which poses risk and slows down growth.
When talking about project-driven industries like construction and engineering, Employer of Record services offer a faster, more compliant, and more cost-effective alternative.
Companies can unlock global talent, deploy teams faster, and stay competitive in international markets without the burden of establishing legal entities abroad by simply partnering with a trusted EOR provider such as Rivermate.
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