The Subsidiary Strategy: Do You Really Need One?

A walk-through of all you need to know about establishing a subsidiary — and your alternative options — as you begin to hire a distributed workforce.

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What you’ll get:

  • All you need to know about hiring through a subsidiary or EOR as your teams expand overseas and remote working continues to increase in commonality.
  • Guidance on managing accounting, payments, and expenses across distributed workforces and the best tech solutions to do so.
  • A comparison between international subsidiaries and an EOR, along with an outline of all the main considerations when choosing between the two.
  • An analysis of the main operational challenges of a distributed or multi-entity team from an accounting and interdepartmental perspective.
  • How spend management can enable remote teams and assist your accounting and finance departments to manage distributed workers.

What you’ll find in this ebook:

As your company grows in size, it will most likely also grow in organizational complexity. In particular, a shift towards remote hiring practices has expanded organizations into labor markets around the world. Read this ebook to find out everything you need to know about the traditional approach of setting up subsidiaries, the emerging alternatives, and other available solutions as your business starts to hire from new jurisdictions.

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Contemporary hiring practices have become increasingly remote and businesses are being met with global expansion earlier as they hire from new jurisdictions. Executing payments and handling the expenses of new, distributed employees will require the right tools and systems.

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What is an EOR and what do they cover?

The classic response to expansion in new regions was a new entity. However, in response to remote practices, the EOR has emerged as an alternative solution. We detail all that an EOR covers in this ebook.

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The benefits of an EOR vs the benefits of a subsidiary when hiring globally.

Choosing between an EOR and a subsidiary requires an understanding of their difference in functionality. We compare the two in this ebook to make that decision easier.

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Questions to help you decide whether you need an EOR or a subsidiary.

Once you understand the differences between an EOR and a subsidiary, we’ve compiled a follow-up set of questions to help you choose which solution is right for you.

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It’s more than a payroll problem.

International payments solutions become extremely important as you expand. Past payroll, new employees will always bring additional non-payroll expenses. How you execute payment and manage these expenses relies on the best systems.

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How Airbase keeps distributed finance and teams connected.

A comprehensive spend management system can carry out international payments in a number of currencies securely, offering remote access for distributed teams and entities. Managing finance and accounting for your distributed teams just got easier.

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Whether you choose an EOR or a subsidiary, it’s clear you’re growing. Choosing tech-based systems which are built to scale, such as a spend management system, will see your growth go further while providing you with the most comprehensive visibility, control, and automation you can get across your distributed teams or new entities.

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