Using Tarmack’s Expertise to Enter New Market Without Legal Entities

In the increasingly competitive market, standing still, strong, and rooted is never an option but a necessity. 

How do you leap into this new market without being bogged down by the intricacies of local bureaucracy and the burden of establishing legal entities? 

Essentially, setting up a new foreign legal entity for an internationally expanding business means establishing a legally recognized company in another country. It involves registering the business with the local government, complying with local laws and regulations, and often includes setting up a local office, hiring employees, and possibly paying taxes in that country. 

It is a crucial step for businesses planning to operate locally rather than merely exporting goods or services, as it allows them to engage in activities like opening bank accounts, signing contracts, and selling directly in the foreign market.

But is it necessary?

The Challenges of Market Expansion

If you are eager to explore a new market without committing to hefty investments or setting up permanent infrastructure, these challenges can act as significant deterrents –

• Establishing a legal entity in another country is both time-consuming and costly.
• Each country has unique labor laws, tax obligations, and employee rights that businesses must adhere to, with non-compliance posing significant risks.
• Efficiently hiring and compensating employees without local expertise can be a daunting task.

Enter New Markets and Reach New Heights With Tarmack 

Tarmack’ is committed to making your market entry as straightforward as possible. 

Our Employer of Record (EOR) solutions are specifically designed to overcome the challenges that come with international expansion. 

Taking charge as the legal employer for your team in new markets allows you to maintain full operational control without getting bogged down by complex legal and administrative issues. 

Here’s how partnering with us can benefit your business –

1. Legal Entity Not Required

Establishing a new entity in another country typically involves significant expenses for registration, compliance, and maintaining physical offices. On average, setting up a foreign subsidiary can cost $15,000–$20,000 and take 6-12 months or more, depending on the jurisdiction.

We eliminate the need for you to establish a legal entity in a new country, which can be both time-consuming and expensive. With us handling the legal frameworks, your business can enter into new markets much faster. 

We take care of all legal and administrative responsibilities, such as compliance, payroll, and employee management. It can save companies up to 40% in HR and compliance costs.

This not only cuts down your costs but also speeds up the entire market entry process, thus giving your business the boost it needs to expand internationally without unnecessary hurdles.

2. Local Compliance Expertise

Our in-depth knowledge of local regulations ensures that your business adheres to all necessary local laws concerning hiring practices, contracts, and payroll operations. With our expertise, you can rest easy knowing that compliance risks are minimized. 

We take the burden of navigating complex legal requirements off your chest.

3. Streamlined Hiring

As you work to expand internationally, managing HR functions like drafting employment contracts, processing payroll, and administering employee benefits becomes increasingly complex and time-consuming.

With us by your side, however, you can offload these responsibilities. We will ensures all employment contracts comply with local labor laws, streamline payroll processes to ensure employees are paid accurately and on time, and handle the intricacies of benefits administration.

This means your internal team can redirect their time and energy from tedious administrative duties to more strategic initiatives, such as developing new product lines, exploring innovative market opportunities, or enhancing customer experiences.  

4. Risk Mitigation

We reduce the risk of legal complications for your business by thoroughly ensuring compliance with local labor laws and tax obligations.

For example, if your U.S.-based marketing company wants to hire a team in Germany, and due to the complexity of German tax regulations, you are worried about legal compliance and risking fines.

With our EOR service, you can hire German employees without setting up a local entity. We will handle all employment contracts, so they meet German legal standards. We manage payroll, calculate taxes accurately, and even provide mandatory benefits like health insurance and paid leave.

5. Scalable Solutions

Whether you are looking to hire one employee or establish a significant presence in a new market, our solutions are scalable to suit your needs. We offer the flexibility to adjust your workforce as your business grows, which makes it easier to meet the demands of evolving markets. 

With the help of adaptable solutions, we empower your business to thrive in the global environment.

Let Tarmack be the Bridge Between Your Business and New Market Opportunities

Entering a new market doesn’t have to mean navigating a maze of complexities. With our EOR solutions, you can explore growth opportunities, hire top talent, and establish a foothold in the global market without legal entities or excessive costs.