What is entity-free visa sponsorship?

Entity-free visa sponsorship is an immigration arrangement where a company sponsors a foreign worker's visa without owning a registered legal entity in the destination country. An employer of record (EOR) or specialized mobility provider fulfills the legal sponsorship role instead, using its own established entity. The arrangement is sometimes called EOR-sponsored visa sponsorship or third-party visa sponsorship.

How entity-free visa sponsorship works

In most countries, immigration authorities require the sponsoring employer to be a legally registered entity in the destination country, with a local tax registration, a legal address, and the standing to enter into employment contracts under local law. An employer of record already meets these requirements through its own established presence.

Under entity-free visa sponsorship, the EOR:

1. Acts as the legal employer and visa sponsor on behalf of the hiring company

2. Applies for the relevant work visa using its own entity's credentials

3. Issues a locally compliant employment contract to the worker

4. Meets all sponsorship obligations to the immigration authority, including records maintenance and right-to-work verification

The hiring company directs day-to-day work and sets compensation, while the EOR holds the formal sponsorship relationship with the immigration authority.

Why entity-free visa sponsorship needs an EOR's entity

When a company has no local entity, it can't file a visa petition, sign sponsorship declarations, or accept legal liability for the worker's immigration status in the destination country. Immigration authorities require a named legal employer who is registered and operating in their jurisdiction.

The EOR's entity substitutes for the hiring company's absent one. In the United States, for example, United States Citizenship and Immigration Services (USCIS) requires visa petitioners to be registered US businesses. The UK Home Office requires sponsor license holders to be legally operating in the United Kingdom.

Germany's Federal Office for Migration and Refugees (BAMF) has its own entity requirements. The specific rules differ by country and visa category.

What entity-free visa sponsorship can and cannot do

Entity-free visa sponsorship isn't available in every situation. Whether it works depends on the destination country's immigration rules, the visa category, and the EOR's authorization in that jurisdiction.

It typically supports:

• Skilled-worker visa categories where the EOR can satisfy the immigration authority's sponsorship criteria

• Relocating an employee to a country where the hiring company has no entity but intends to expand

• Situations where establishing a local entity would take longer than the business need allows

It doesn't apply when:

• The visa category requires a direct corporate relationship between the sponsor and the actual end employer (certain intracompany transfer visas fall into this group)

• The destination country's rules prohibit EOR-based or third-party sponsorship for the specific visa type

• The hiring company's activities in the country require its own license or authorization independent of employment

The immigration authority in each destination country determines eligibility for the specific visa category and arrangement.

Compliance responsibilities under entity-free visa sponsorship

The EOR, as the legal sponsor, carries the primary compliance obligations to the immigration authority. These typically include:

• Maintaining accurate records of the sponsored worker's role, salary, and work location

• Reporting material changes in the worker's employment to the relevant authority

• Conducting and documenting right-to-work checks before and during employment

• Cooperating with any audit or inspection

• Notifying the authority if employment ends

The hiring company carries parallel responsibilities. It must give the EOR accurate information about the worker's actual duties, notify the EOR promptly of any change that could affect visa conditions, and not direct the worker in ways that breach the visa terms. Failure on either side can lead to visa curtailment, civil penalties, or restrictions on future sponsorship.

How Deel Mobility supports entity-free visa sponsorship

Deel Mobility supports companies relocating workers into countries where they have no local entity. Through the EOR structure, Deel acts as the legal employer and sponsoring entity.

Deel coordinates the immigration process and local compliance. The scope of support for specific visa types or immigration advisory depends on the destination country and visa category.

Entity-free visa sponsorship key facts

• Entity-free visa sponsorship uses an EOR's legal entity to meet immigration-authority requirements in the destination country.

• The EOR becomes the legal employer and visa sponsor.

• The hiring company retains day-to-day direction of the worker's activities.

• Whether entity-free visa sponsorship is available depends on the destination country's rules, the visa category, and the EOR's standing in that jurisdiction.

• Not all visa types or countries permit EOR-based or third-party sponsorship.

• The EOR holds primary compliance obligations to the immigration authority, while the hiring company shares responsibility for accurate, timely reporting of any changes.

• Entity-free sponsorship works as a bridge in new markets and as a lasting arrangement for businesses that don't want the cost of their own local entity.

FAQ

What is the difference between entity-free visa sponsorship and standard EOR employment?

Standard EOR employment covers workers who are already legally entitled to work in the destination country. Entity-free visa sponsorship goes further: the EOR actively sponsors the worker's work visa as the registered, in-country employer-sponsor the immigration authority requires.

Does entity-free visa sponsorship work for all visa types?

No. Eligibility depends on the destination country's immigration rules and the specific visa category. Some categories (certain intracompany transfer visas in particular) require a direct corporate relationship between the sponsor and the worker's actual employer. The relevant immigration authority in each country sets these requirements.

Who is liable if something goes wrong with the sponsored visa?

The EOR as the legal sponsor carries primary liability to the immigration authority. If the hiring company provides inaccurate information about the worker's role or fails to notify the EOR of a material change, it can share responsibility for any resulting compliance breach.

Can entity-free visa sponsorship be a permanent arrangement?

Yes. Many companies use it as an ongoing arrangement, particularly when the number of workers in a country doesn't justify entity setup costs. Whether the arrangement suits a company depends on the business model, the visa category, and host-country rules.

What happens when employment through the EOR ends?

When employment through the EOR ends, the worker's visa status depends on the destination country's rules. Most work visas are tied to the sponsoring employer, so the worker typically needs a new sponsor, a visa category change, or departure within any grace period the immigration authority allows. See immigration compliance for related obligations.

This entry covers general concepts only and does not substitute for advice from qualified immigration advisers or the relevant immigration authority, as visa sponsorship rules vary by country, visa type, and individual circumstance.