Article
4 min read
Author
Jemima Owen-Jones
Published
February 18, 2022
Last Update
June 21, 2024
Table of Contents
How to hire an international employee
Open a local subsidiary wherever you want to hire international employees
Sponsor an international employee to obtain a visa
Hire using an employer of record
Bonus option: Hire independent contractors instead of foreign employees
Frequently asked questions about the international hiring process
Hire international employees in 100+ countries with Deel
According to our most recent State of Global Hiring Report, international hiring is sustaining momentum, with 89% of contracts on Deel created for remote workers. But hiring an international employee requires more than putting “Remote OK” on job boards.
Establishing yourself in a new market involves time, legal expertise, and a fair amount of risk, which is why companies seeking global expansion use companies like Deel for international hiring, payment, and compliance.
Keep reading to learn about the most common global hiring options, including the process, degree of support, and scalability of each.
Disclaimer: This post is for informational purposes only and should not be considered legal advice. Though this content focuses on US employers, Deel enables companies worldwide to hire, pay, and manage their global teams.
Companies have multiple options for international hiring:
The alternative option is to hire international contractors instead of employees.
A foreign subsidiary is a legally independent business entity set up in a foreign country under the holding company’s control.
Another name for this type of entity is a daughter company. The parent company can have complete ownership, but the subsidiary must operate according to its location’s laws and tax liabilities. Once you set up a foreign subsidiary, you can legally hire employees in that country. If you want to hire in additional countries, you’ll have to repeat the process for each.
Opening a local subsidiary takes the most time but allows companies to open a physical location and establish a strong brand in another country. Consider setting up a foreign legal entity if you:
Proceed with caution unless you have sufficient time and legal counsel. Opening a company in a foreign country means studying local employment laws, understanding local tax laws, preparing extensive paperwork to ensure compliance, opening local bank accounts, and more.
Consider other options if you want a fast and affordable international hiring solution.
Visa sponsorship is the process of working with the government to allow a foreign employee to work and reside in a country as a nonimmigrant.
You can receive visa mobility support for 21 countries through Deel. Our in-house team handles the entire visa process for you. Request visa support from our team and we’ll assess the employee’s eligibility based on local requirements, engage the employee via our EOR solution, and start the application process.
The process of acquiring a US visa for your foreign employee includes a lot of paperwork and red tape. The US government generally prefers US companies hire US citizens.
Most foreign professionals start with an H-1B visa for temporary, nonimmigrant residence and work toward a green card for permanent residence.
The first step in the visa process is to fill out the Labor Condition Application and get approval from the US Department of Labor (DOL). Then, you need to gather different forms and documents, and:
Finally, you’ll submit this documentation to the US Citizenship and Immigration Services to receive the H-1B visa. You’ll repeat the process to receive permanent labor certification.
🎥 Watch a webinar: Streamline international hiring with EOR visa sponsorship
Visa sponsorship is the best option for employers hoping to bring foreign employees into the organization’s home country. Consider visa sponsorship if you:
An EOR, also called an international professional employer organization (PEO), is a company that engages and pays one or more employees to provide services to another company. An EOR enables companies to legally work with employees in another country without setting up an office in that country or region.
EORs set up local entities in countries around the world. They can engage anyone, anywhere—no need to relocate your employees. EORs also comply with local tax regulations, labor laws, and payroll, so you can focus on finding and growing great talent (not compliance).
For example, a US company can partner with an EOR to easily hire and pay remote workers in Switzerland or Brazil. Likewise, an employer from Belgium can hire a US worker and provide employee benefits required by the US.
One of the major benefits of hiring foreign employees using an EOR is that you gain access to a wider pool of talent in almost any country. If your goal is to go global, an EOR is a safe and fast option.
Outsourcing international hiring to an EOR makes sense for companies that want to grow into a global market or work with international workers from many countries. Consider partnering with an EOR if you:
Hiring independent contractors is another accessible form of international hiring, especially for companies that have fluctuating or unpredictable needs.
Unlike full-time employees, independent contractors work on their own schedule, use their own equipment to perform the work, and are usually considered self-employed by the Internal Revenue Service (IRS). The companies they work for are their clients, not employers.
Independent contractors are in charge of their own taxes and don’t receive protections and employee benefits like workers on a company’s payroll.
Many companies hire local and non-US contractors. Hiring non-US citizens is different than hiring US contractors because:
Companies hire independent contractors because they are generally more cost-effective and offer more flexibility than full-time employees. Consider hiring a foreign independent contractor if you:
Find even more information about hiring overseas in the FAQ below.
Illegal hiring of foreign nationals can cost US companies:
Companies who knowingly hire someone unauthorized to work in the US face the most severe consequences.
Employers typically cover all fees related to the permanent employment certification process. The employee typically covers the cost of private legal counsel if they seek it, but if the case attorney represents both sides, the employer pays all costs related to the process.
Freelancers are similar to independent contractors in terms of employment law. Freelancers and independent contractors operate slightly differently, but hiring a foreign freelancer follows the same process as hiring a foreign independent contractor.
An employer’s international hiring costs will vary by country, compensation, mandatory benefits, and local employment laws. Use our employment calculator to estimate the cost of hiring an international employee.
Global employment has never been more accessible. Whether you want to employ independent contractors or onboard new full-time employees, you must understand each country’s labor and tax laws to reduce your risk of misclassification.
But compliance doesn’t have to stop you from diving into the global talent pool—especially with Deel, the simple solution for international hiring.
Deel ensures each contract signed by a full-time employee or contractor is entirely compliant with local regulations in over 150 countries. Learn more about how Deel’s EOR model can help you build a global workforce.
Ready to learn how to hire globally with Deel?
See how easy it is to manage international taxes and employee benefits on our platform, with simple walkthroughs and illustrations.
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