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Why Use Plane Instead of Setting Up Your Own Subsidiary?

Learn how Plane simplifies hiring international employees.

Updated today

When hiring employees in another country, companies typically have two options:

  • Set up a local subsidiary

  • Use an Employer of Record (EOR) such as Plane

Opening a subsidiary can be costly and time-consuming, requiring legal setup, accounting support, and ongoing compliance management. Some companies, however, still decide to do it- here you can read three of the most common reasons.

Before diving headfirst into setting up your own subsidiary, we encourage you to explore how Plane can simplify international hiring for you!


Why Companies Choose Plane

Using Plane to hire international employees offers several advantages:

No entity setup required
You don’t need to establish a local subsidiary, which can involve legal registration, accounting setup, and ongoing compliance obligations.

Faster international hiring
Plane enables you to hire employees in supported countries without waiting for entity formation.

Simplified compliance
We manage local employment requirements, payroll regulations, and statutory filings.

Lower operational overhead
You won’t need to maintain local HR, legal, or payroll infrastructure.

Simpler tax structure
Operating without a foreign subsidiary may help avoid additional complexity in your company’s tax reporting (Your 1040 becomes much more complicated with a foreign subsidiary.)

What Plane provides

We’ll assume the risk of putting your employees on our entity’s payroll on your behalf and act as the employer of record (EOR) for your employees. This includes generating their locally compliant employment contract and running their payroll and benefits, including all required filings and contributions.

We don't charge any setup fees, transfer fees, or processing fees for expense reimbursements, which are common in the industry. Everything is covered in the monthly fee.

Whichever option you choose, you'll have to comply with local employment law. Going with Plane, though, means we'll take care of that for you!

Need help?

If you have questions about international hiring or Plane’s services, our team is happy to help.

You can:

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