Yes, there are cost differences between the two models, and each comes with its own pricing structure depending on your business goals and stage of growth.
Employer of Record (EOR) usually involves higher ongoing costs. That’s because the EOR provider becomes the legal employer on your behalf. The EOR handles contracts, payroll, taxes, and compliance with the labour laws of your employees.
As such, EOR services come bundled with monthly fees and provider markups, which makes them ideal for fast hiring and short-term needs, but less cost-effective as you scale.
Entity management, on the other hand, typically requires an initial setup investment for company registration, legal filings, and operational readiness. However, it offers lower per- employee costs over time. Once your entity is set and running, you have full control over the infrastructure, and platform fees are generally flat without markups.
Choosing the right model mostly depends on how quickly you want to hire, how much control you want, and whether you plan to establish a long-term presence in the specific market. If you’re still unsure of which model works best for your business goals and needs, please book a demo call. Our team will be more than happy to guide you through the options.
Not the answer you were looking for? Please feel free to contact our support team for more assistance.