Global SaaS is won by speed and trust. The fastest way to test a new country is to hire a small, compliant team now, then move them to your own entity once the market proves out. That PEO-plus-EOR pattern compresses the time from “we think” to “we know.” In a recent cross-border trade study, 66% of businesses said they plan to expand into new countries within two years, and 81% expect higher international sales in the next five. Your peers are already moving.
At home, a PEO gives you one operating engine for people operations so managers stop chasing tickets and focus on customers. In the U.S., firms using PEOs tend to grow faster and show lower turnover than peers. For new countries, you start with an Employer of Record to hire legally without opening an entity, then convert to your own entity when the market sticks.
The model that moves fastest: PEO at home, EOR abroad
A PEO shares employer tasks with you and standardizes HR operations so your core team has one system and one help path. Industry data links PEO use with faster headcount growth and stronger survival versus comparable firms. Use that stability as your “home base.”
An Employer of Record lets you hire and manage employees in a new country without establishing a local entity, which is why analysts position EOR as essential for quick entry. Leading sources and providers say first hires can often be live in days or a couple of weeks, depending on the country and documents.
How they fit together
- Keep your domestic team on PEO for consistency and manager time back.
- Use EOR for the first 1–5 hires per country to test demand.
- If the country proves out, open your entity and transfer staff off the EOR cleanly.
Why “months, not years” is realistic
Entity setup is more than a form. After incorporation you still need tax registrations, payroll setup, banking, and sometimes local directors.
- Germany (GmbH). Minimum share capital is €25,000; practical formation timelines of 6–8 weeks are common, with banking and notary steps pacing the process.
- United Kingdom. Company formation can be same day, but PAYE setup to run payroll typically takes up to 20 business days, which affects first payroll timing.
- Singapore. Government incorporation fees are S$315; real first-year costs for foreign founders usually run higher once you include required services.
An EOR sidesteps most of that, which is why credible timelines talk about onboarding in days to two weeks rather than months.
A 90-day global hiring playbook for SaaS
Keep it repeatable. Optimize for time to revenue and clean employee experience.
Days 1–15: pick one or two test countries
Use pipeline and install-base data to choose locations with real demand. Line up EOR contracts and a standard offer pack. Analysts frame EOR as the fastest way to hire before you have an entity.
Days 16–45: make your first hires
Run a focused process for sales, success, or solutions roles. Issue compliant contracts through the EOR. Reputable timelines show first payroll can run in the first month when documents are ready.
Days 46–90: decide the path
If the early signal is strong, start the entity process while people remain on EOR. Many organizations revisit the EOR vs entity decision around 12–18 months in market; plan notice windows and transfer mechanics now so the move is clean when you flip.
SaaS realities this model actually solves
Enterprise buyers do not just buy features. They buy reliability and clean governance.
- Security and SOC 2 evidence. A PEO standardizes onboarding, offboarding, and access reviews. EOR gives compliant local employment and privacy notices, so your audit trail stays clean when staff sit abroad.
- Procurement confidence. Big customers ask where staff are employed and how terminations work. PEO and EOR give clear, documented answers.
- Localization that matters. Offers include country-specific benefits, holidays, and leave rules that help close senior hires.
- Manager experience. One help path at home, one in-country help path abroad, so teams are not guessing.
Equity and incentives when you hire abroad
Equity is often the first blocker for senior SaaS hires. Set it right.
Situation-Based Offer Patterns
| Situation | What tends to work | Why it matters |
|---|---|---|
| First hires via EOR | RSUs or cash bonus plus local benefits; avoid entity-dependent option plans | Clean taxation and simpler paperwork while you test the market |
| After you open an entity | Country-appropriate options or RSUs; align cliff and vest with HQ | Reduces renegotiation risk and keeps incentives aligned |
| Senior sales with variable pay | Clear quota currency, FX rules, and clawback terms in the letter | Prevents disputes and speeds sign-off |
| UK leadership roles | Consider UK-specific equity schemes once you have an entity | Improves competitiveness against local peers |
Add one plain-language line in offer letters that explains how equity and bonuses are taxed under the current setup and that terms will be harmonized after entity launch.
Cost view: EOR vs opening an entity
Think in two dimensions: time to revenue and total cost.
EOR vs New Entity (Illustrative)
| Item | EOR | New entity (illustrative) |
|---|---|---|
| Time to first compliant hire | Days to ~2 weeks | Weeks to months, varies by country |
| Upfront setup | Low | Country-specific fees and services |
| Early hard costs (examples) | Monthly fee per employee | Germany: notary/registry plus €25k share capital; UK: quick incorporation, but allow up to 20 business days for PAYE; Singapore: S$315 government fees, higher real first-year cost for foreign founders |
| Best use | Market test, first 1–5 hires | Country validated, multi-year plan |
EOR is a speed premium. You trade a higher monthly for months of earlier revenue. When the country proves out, moving to your own entity pulls unit cost down and standardizes equity.
A 60-second permanent establishment check
Permanent establishment (PE) is a tax concept. While you test a market, run this quick screen:
- Do local staff sign or negotiate contracts.
- Do they habitually close deals for you.
- Do you keep a fixed place of business like an office or warehouse.
If any are yes, involve tax counsel and set guardrails. OECD and HMRC guidance focuses on fixed places of business and dependent agents who habitually conclude contracts.
Make it measurable: KPIs for the first 90 days
Leaders need proof the model is working. Track a few signals:
90-Day KPI Targets
| Phase | KPI | Healthy target |
|---|---|---|
| Days 1–15 | Time to compliant offer | 10–20 business days |
| Days 16–45 | First revenue touch or qualified meetings | At least 10 qualified touches |
| Days 16–45 | First payroll accuracy | 100% paid on time, zero escalations |
| Days 46–90 | Pipeline coverage (next quarter) | 3–4× target |
| Days 46–90 | Offer acceptance rate | 70%+ for first three hires |
| Days 46–90 | Employee NPS at day 45 | 40+ and comments on onboarding clarity |
EOR→entity transfer checklist
Use this when you decide to switch.
- Confirm employee consent and transfer mechanics in current EOR contracts.
- Align start date, probation status, and tenure carry-over.
- Reissue local benefits and prorate annual allowances.
- Harmonize equity terms and confirm any tax withholding changes.
- Close out EOR payroll and benefits with a clean final reconciliation.
- Update DPAs, access lists, and SOC 2 evidence for auditors.
- Check notice periods; 30 days is common in EOR commercial terms.
Country quick facts
Short notes your exec team will actually use during reviews.
- Germany. Plan on 6–8 weeks and €25,000 for a GmbH; banking and notary timing are the usual bottlenecks.
- United Kingdom. Incorporation can be same day; PAYE may take up to 20 business days. That affects first payroll timing.
- Singapore. Government incorporation fees are S$315. Expect extra first-year services for foreign founders.
FAQs
Is PEO enough for global hiring
PEO is ideal where you already have an entity. To hire in a country where you do not, use EOR first, then migrate to your own entity once the market proves out. This pattern is widely recommended because EOR enables hiring without a local entity and entity setup often takes weeks to months.
How fast can we hire with EOR
Often in days to about two weeks, depending on documents and the country. That is why teams use EOR to get the first sales or success hires live while the entity clock runs in the background.
When should we move from EOR to our own entity
Signals include stable revenue, a multi-year headcount plan, or the need for deeper control of benefits and equity. Many organizations make the call around 12–18 months in market. Plan notice windows and clean transfers early.
Why keep a PEO at home if we use EOR abroad
Because it standardizes what leaders feel every day: one help path, one system, faster onboarding. U.S. data associates PEO use with faster growth and lower turnover, which compounds as you add countries.
CTA
Plan two countries in 90 days.
We will map EOR options, a lean benefits pack, PE guardrails you can share with sales, and a clean transfer plan to your own entity if the market hits.
