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When organizations decide to expand into new countries, one of the first new hires most companies make are salespeople. However, hiring a salesperson in a foreign country can be more complicated than many expect. There are many things that need to be in place prior to hiring that new rockstar. The recruiting of the candidate might actually be the easiest part. What many don’t consider is the legal and compliance requirements of setting up an entity in a new country. The good news is that there are alternatives to setting up shop in a new country, which we will explore below. 

Setting up shop the old fashioned way

Traditionally if an organization wants to expand into a new country with salespeople, they will need to set up an entity in that country. Depending on the country, there could be many different steps in doing so. Additionally, every country has a different set of steps and laws that you will need to follow. There are three main steps you will need to take to get started, which are outlined below. 

Contact the authority on business in the new country

In the United States, that could be the secretary of state for the state you want to open up shop in. The US government website has some good resources on how to do so as well. There are similar resources and offices for other countries as well that will be able to help you get set up.

Get an agent

Once you understand the logistical steps from working with the local government, you will next need someone to guide you through the legal process. Many organizations choose to use a local agent within the home country in order to ensure they are compliant. These agents are many times law firms, private lawyers, accountants or accountancy firms, and the like. These types of agents can represent you in the home country and ensure you get set up correctly.

Get a international bank

With the rise in technology many people think banking internationally might be easy. However, if your business is not set up with the right bank it will be hard to bank internationally. Paying vendors, or salespeople, and receiving payments in different currencies can be a challenge for many local banks, so working with a bank that has international capabilities is key. Additionally, some countries may require you to work with banks within their nation, or it may be advantageous to do so for your organization. Your agent may be able to direct you to the best local banks within the new country if that is the case. 

Once you are able to do all the above steps you may then be able to start recruiting your sales person.

Using a Global Employer of Record (EOR)

Leveraging an Employer of Record instead of setting up shop yourself can be a very cost effective and quick way to hire salespeople in new countries you want to do business in. EORs are organizations that already have a presence or partner within the country that you want to hire someone. So they become the legal employer of your salespeople. They then take on the burden of paying, insuring, and supporting that employee while they are working for you. This allows you to hire salespeople without having to set up shop or worry about local employment law and compliance. 

Benefits of using a global EOR 

Speed

Sometimes nothing is more effective than quick action. Expanding into new countries is no exception, but the old fashioned way of doing so can take a long time. Leveraging an EOR could allow you to hire salespeople within weeks, and get boots on the ground selling quickly. 

Compliance

Hiring salespeople in different countries can be confusing, especially when it comes to employment law. The laws in Europe are much different than the laws in the US, and China, and so on. Not having to worry about learning all these laws can take a big burden off your shoulders. Additionally, the assurance that you will be compliant is key to confidently hiring a new salesperson. 

Cost

When you only want to hire one, or a couple salespeople, investing in a lengthy legal process to set up an entity can seem like a waste of time. The cost and effort to do so may not be worth it. Using an EOR allows you avoid heavy up front cost, and only spend what yo need to.

As the rise in remote work increases, the demand for international salespeople will continue to rise. Organizations that are able to successfully expand abroad will be able to gain more market share and increase brand awareness. Conversely organizations that struggle to do so will lose ground and potentially miss out on deals. So, if you are a business leader looking to sell your services in new markets, knowing how to expand effectively will be key. The good news is that you can do it the old fashioned way, or by leveraging and EOR like FoxHire to do so.

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