International growth creates exciting opportunities, whether you're entering a new offshore wind market, supporting a vessel mobilisation, or expanding your commercial footprint into a new region.
It also raises an important question:
How do you legally employ someone in a country where you don't have a business presence?
For many maritime employers, the instinctive answer is to establish a local legal entity. While that can be the right approach for organisations making a long-term commitment to a market, it isn't always the most practical, cost-effective or agile solution.
Increasingly, employers are choosing an Employer of Record (EOR) to hire international talent quickly and compliantly without establishing their own entity.
So, which option is right for your business?
Understanding your options
Before making a decision, it's important to understand what each option involves and how it aligns with your growth plans.
Setting up a local entity
A local entity is a registered business in the country where you intend to employ people. Once established, your organisation becomes the legal employer and is responsible for every aspect of employment, including payroll, tax, employment contracts, benefits, compliance and HR administration.
For organisations building a substantial, long-term presence, this level of control can be an advantage.
However, establishing an entity requires significant investment of time, money and internal resources before you can employ your first person.
Using an Employer of Record (EOR)
An Employer of Record legally employs people on your behalf while you retain responsibility for managing their day-to-day work, objectives and performance.
The EOR manages employment contracts, payroll, tax, statutory benefits and compliance with local employment legislation, allowing your business to hire internationally without creating its own legal entity.
For many maritime employers, this removes one of the biggest barriers to international growth.
Local Entity vs Employer of Record: At a Glance
Consideration | Local Entity | Employer of Record (EOR) |
|---|---|---|
Legal Employer | Your business | EOR |
Speed to Hire | Can take weeks or months | Often significantly faster |
Upfront Investment | Higher | Lower |
Payroll & Compliance | Managed internally | Managed by the EOR |
Administrative Burden | High | Significantly reduced |
Flexibility | Best for established operations | Ideal for expansion and project hiring |
Hiring One or Two People | Often disproportionate | Well suited |
Testing a New Market | Less flexible | Highly effective |
Five situations where an Employer of Record gives maritime employers an advantage
Although every business is different, there are several scenarios where an Employer of Record can support growth more effectively than establishing an entity.
1. You need to hire quickly
Commercial opportunities rarely wait.
Whether you've secured a new client, won a project or need someone in-country to support business development, lengthy entity registration processes can delay recruitment.
An Employer of Record allows you to onboard talent while avoiding the administrative delays associated with establishing a legal entity.
2. Your ideal candidate lives in another country
The best maritime professionals don't always live where you already operate.
If you've found the right person but don't have an entity in their country, an Employer of Record enables you to recruit based on capability rather than geography.
Instead of compromising on talent or restarting your search, you can focus on securing the candidate you want.
3. You're testing a new market
Expanding into a new country often begins with one or two strategic hires rather than a fully established office.
Using an Employer of Record allows you to validate market opportunities, build customer relationships and understand local demand before deciding whether a permanent business presence is justified.
It's a measured approach that reduces upfront commitment while maintaining momentum.
4. You're supporting a project with defined timelines
Many maritime projects require specialist expertise for a fixed period.
If your hiring needs are linked to a vessel delivery, offshore project, mobilisation or regional expansion, establishing a legal entity may not represent the best use of resources.
An Employer of Record provides the flexibility to support project-based hiring without creating unnecessary long-term infrastructure.
5. You want to focus on growth, not administration
International employment brings ongoing responsibilities, from payroll and statutory benefits to changing employment legislation.
By working with an Employer of Record, your team can concentrate on commercial priorities while experienced specialists manage employment administration and compliance.
When does establishing a local entity make sense?
There are many situations where creating your own legal entity is the right strategic decision.
You may benefit from establishing an entity if you:
Plan to build a significant workforce in one country
Intend to open permanent offices or operational facilities
Have dedicated HR, finance and legal resources
Are making a long-term investment in that market
For organisations committed to building an established regional operation, an entity often becomes the natural next step.
In fact, many businesses begin their international journey with an Employer of Record before transitioning employees to their own entity as operations expand.
Rather than competing approaches, they often represent different stages of business growth.
Which option is right for your business?
Ask yourself these five questions:
How quickly do we need people in place?
How many employees are we planning to hire?
Are we testing the market or making a permanent investment?
Do we have the internal expertise to manage employment compliance?
How much flexibility do we want as our plans evolve?
Your answers will often point naturally towards the most appropriate solution.
Why maritime employers choose Faststream's Employer of Record service
An Employer of Record plays an important role in your international hiring strategy. Alongside managing employment, payroll and compliance, the right partner should understand your industry, your hiring challenges and the commercial realities of operating in the global maritime sector.
Unlike many global EOR providers, Faststream combines specialist maritime recruitment expertise with international employment solutions.
That means we can support employers throughout the hiring journey:
Helping you attract specialist maritime talent
Employing people compliantly in countries where you don't have an entity
Managing payroll, contracts and statutory obligations
Supporting international expansion with confidence
Providing industry knowledge alongside employment expertise
For employers expanding internationally, having one trusted partner for both recruitment and employment can simplify the process and reduce risk.
EOR Case Studies - Examples of EOR and International Payroll Solutions for Maritime
From managing payroll for international crews to ensuring compliance for professionals in highly regulated markets, here are some examples of how we’ve helped companies overcome hiring challenges and establish a compliant global workforce.
Delivering Compliant Payroll & Employment Solutions for a Global LNG Newbuilding Programme
We supported a global shipping company’s LNG and FSRU newbuilding programme with a compliant EOR and payroll solution across the Philippines, Singapore and South Korea, enabling rapid mobilisation, cost savings, and long-term workforce management without the need for local entities.
Supporting a Greek Company with a Newbuild Site Team in Korea
We facilitated the seamless employment of a specialised new build site team in Korea for a Greek maritime company, ensuring full compliance with local labour laws and payroll requirements.
Ensuring Compliance for UK Employees in the Netherlands
A Danish company required compliance and auditing professionals in the Netherlands. We handled all employment complexities, from work permits to payroll administration, ensuring regulatory adherence.
Hiring Sales Professionals in Panama for a UK Company
A UK business looking to enter the Latin American market needed local sales expertise in Panama. We took care of employment contracts, tax compliance, and payroll, allowing them to focus on business growth.
Managing International Crew Working in UK Waters
We supported the employment and payroll of international crew working in UK waters, ensuring seamless compliance with maritime employment regulations and payroll processing.
Frequently Asked Questions
Is an Employer of Record better than setting up a local entity?
Neither option is universally better. An Employer of Record is often the preferred choice for businesses hiring a small number of employees, entering a new market or needing to recruit quickly. Establishing a local entity may be more appropriate for organisations creating a permanent presence with a larger workforce.
Can I move employees from an Employer of Record to my own entity later?
Yes. Many businesses use an Employer of Record during the early stages of expansion before transferring employees to their own entity once operations become more established.
Does an Employer of Record manage my employees?
No. You continue to direct the employee's work, responsibilities and performance. The Employer of Record acts as the legal employer and manages employment administration, payroll and compliance.
Is an Employer of Record suitable for maritime businesses?
Yes. Employer of Record services can be particularly valuable in the maritime sector, where employers often recruit internationally, support project-based work and expand into emerging markets before establishing permanent operations.
How quickly can an Employer of Record help me hire internationally?
Timeframes vary depending on the country and individual circumstances, but using an Employer of Record is generally much faster than establishing a local legal entity before hiring.
Related Reading
If you're exploring international hiring, these resources may also help:
How an Employer of Record Helps You Stay Compliant When Hiring Internationally
How an Employer of Record Can Help You Control International Hiring Costs
The Hidden Costs of Global Hiring: Why an Employer of Record Could Save You More Than You Think
About Faststream Recruitment
Faststream has specialised in maritime recruitment since 1999, helping employers connect with the people who keep the global maritime industry moving. Our Employer of Record service goes beyond employment administration. We combine deep sector expertise with international hiring support, helping maritime employers recruit and employ exceptional talent compliantly in countries where they don't have a legal entity.
Whether you're hiring one specialist, entering a new market or scaling your international workforce, our team can help you move forward with confidence.
