Are Employer of Record solutions more expensive than just setting up our own company?


The initial outlay of registering a new company might seem low, but the ongoing running costs are a long-term financial commitment. On top of local staff salaries and benefits, maintaining a company also requires regular expenditure on essentials such as premises, banking, business insurances, corporate taxes, utilities, local professional services and so on. Without local knowledge, there is also the possibility of unexpected costs such as fines for local non-compliance and late payment penalties.

An Employer of Record service means you simply pay a consolidated monthly margin to the EoR provider, who then takes on all employment duties in-country and has its own local company infrastructure in place. ABN Australia has an inhouse Compliance team and network of local partners who will ensure compliant employment where you may not have these resources.

If you want to dip your toe into a new market without the long-term commitment and costs of your own entity, Employer of Record is often the better value option.