Owned Entity vs. In-Country Partner: The Best Choice for Global Hiring

Expanding your team internationally can open up extraordinary possibilities—but the hiring process itself can quickly become complex.

Using an international hiring solution such as an Employer of Record (EOR) means trusting another organization with your workforce. However, providers use different operating models to fulfill your hiring requests in the countries you want to hire from. They either operate through their own legal entities or use in-country partnerships.

Your choice will significantly impact your payroll and HR processes, data security, employee satisfaction, scalability, budget, and reputation. Simply put, a global hiring solution is more of a partner than a service provider. This is why it’s important to select the right one from the start.

Deel understands the challenges businesses face when navigating international hiring, compliance, and payroll management. With fully owned and operated entities in over 120 countries, Deel gives businesses unmatched control, efficiency, and security.

Choosing Deel empowers your organization with seamless global processes, superior customer service, and reduced operational risks. Thousands of companies have already discovered that partnering with Deel means lower costs, streamlined HR operations, and greater strategic freedom to focus on growth and success in global markets.

We’ll explain why owned-entity hiring solutions like Deel can better meet your organization’s needs.

What's the difference between owned-entity hiring solutions and partner-dependent solutions?

When looking for an international hiring and expansion solution, it’s important to understand their different operating models.

Some solutions choose to establish their own entities around the world to help your organization hire from different countries. At Deel, we refer to this as the wholly-owned model. This means that the provider has taken the time and money to set up its own entities in different countries.

Owned entities allow the provider to have complete control and oversight of operations in a specific country. Through these entities, they can run global payroll and take care of other HR processes in-house.

Other hiring solutions, instead of building their own infrastructure in each country, form in-country partnerships with local vendors. This is called the aggregator model. These vendors provide hiring, payroll, and HR services to your organization on the provider’s behalf.

Instead of an in-house team of local experts, the partner's team oversees onboarding and payroll management. The provider relies on the infrastructure of their partners to carry out their services.

Think of it as using a patchwork of old, unreliable roads. Rather than driving on a private expressway built for speed and efficiency.

An aggregator-based hiring solution relies on third-party providers. This creates bottlenecks, delays, and hidden costs. Just like navigating toll roads owned by different operators, each with its own rules and fees.

In contrast, a global employment solution with its own legal entities is like a seamless, well-maintained highway. It’s faster, smoother, and built for long-term success without detours or surprise costs.

Discover how Pixis expanded its global presence efficiently with Deel.

See also: Employer of Record Switch: 7 Tips for a Successful Transition

Owned entities: Pros and cons

Hiring through a wholly-owned hiring solution doesn’t come with many drawbacks. The only potential barrier could be coverage. If your chosen vendor doesn’t have an entity in the country you want to hire from, this could delay your global expansion plans.

Deel has the most extensive country coverage in the market with:

• Employee hiring in 110+ countries
• Contractor hiring in 150+ countries
• Global Payroll in 110+ countries
• Visa and immigration services in 40+ countries
• Native payroll engines in 50+ countries
• 350+ in-house payroll, legal, and HR experts in 110+ countries

Benefits of hiring solutions with owned entities include:

• Direct access to your HR and payroll provider: You’ll have fewer touchpoints in communication. This means faster resolution of any issues, especially if the provider offers a dedicated customer success manager

Read more: 5 Key Benefits of Having a Dedicated Customer Success Manager

• Enhanced employee experience for your global team: Your workers will have a consistent and equitable experience across locations. You won't have to depend on local vendors and their way of doing business

• Mitigated data security and compliance risks: Your data is better protected, as no third parties are involved in handling sensitive employee information

• More customization: Especially regarding HR policies and employee benefits packages and perks. You’re not limited to what a specific in-country partner can offer

• Stronger local compliance: With an established presence in a foreign country, wholly-owned hiring solutions understand local laws better. They’ll keep up with regulation changes impacting your workforce

See also: The Enterprise Guide to Global Compliance Management in 2025

• Cohesive company culture: Your brand values, culture, and standards are consistently upheld across all international locations where your employees reside
• Overall cost savings: Providers with owned entities in your target countries typically charge less. This is because they manage processes in-house, and there are no third parties to pay additional fees to
• Experienced entity setup support: Should you decide to establish your own legal entity in the future, you'll need a provider that has experience doing this themselves

Learn more: A Guide to Setting up a Local Entity

Discover how Lloyd’s List Intelligence expanded to new markets with Deel.

See also: EOR vs. Entity Costs: What’s More Affordable?

Partner-dependent hiring solutions: Pros and cons

Some hiring solutions opt for the aggregator approach so they can skip the time-consuming and costly process of registering their own entity in a target country. While this approach is more cost-effective for the vendor, it can be less reliable and efficient for your organization.

Here are some challenges you may face with the aggregator model:

• Increased compliance risks: Without a dedicated entity in each country, an aggregator hiring solution has to rely on local partners. These partners give local tax and employment regulations updates. Should something go amiss, you could be liable, depending on the terms and conditions of that specific partner

Read more: How Deel Protects Companies From Permanent Establishment Risk

• Inconsistent processes: Multiple payroll or HR partners on the ground also mean varying processes. This creates a fragmented employee experience and may lead to employee dissatisfaction

• Dependence on multiple vendors: The risk of potential disruptions to your international operations increases with the number of vendors an aggregator hiring solution works with

• Limited customization options: Aggregator hiring solutions can only offer what their partners offer. This may not always be the best fit for your specific business needs

• Lower quality of overall service: Multiple touchpoints can impede responsiveness and reduce problem resolution speed

• Higher service costs: In-country providers charge their own fees. Therefore, the overall cost of using a partner-dependent hiring solution can be higher. This is often due to hidden costs, like add-on fees or changes in pricing. There's also the hidden costs of noncompliance penalties

Discover how Pudu Tech grew its global footprint with Deel.

See also: Deel’s White Label and Reseller Programs

So, which hiring solution is more beneficial for your organization?

A wholly-owned hiring solution is the clear winner. It gives you full control, faster issue resolution, and a direct line to your HR and payroll provider—no middlemen, no delays.

Your international team enjoys a seamless, equitable experience without inconsistencies from third-party vendors. Stronger compliance, tighter data security, and reduced risk come from in-house expertise, not outsourced uncertainty.

You get greater flexibility in payroll, benefits, and policies, ensuring alignment with your company culture. Plus, with lower costs and expert support for future entity setups, an owned-entity model is the superior, scalable solution for long-term success.

Deel is the most comprehensive, wholly-owned hiring solution on the market. Deel doesn’t just take care of your hiring, payroll, and HR admin. It also provides access to first-hand local expertise in different regions. You can also access professional expansion consulting to get the most out of business opportunities.

Deel can advise you on how best to reach your full potential in a specific country. We’ve taken the expansion route ourselves and have all the necessary knowledge and experience to share.

Deel can also help build stable relationships with local authorities. Are you looking to make a positive impression in a market where you don’t own an entity? With Deel's trustworthy reputation, you're sure to attract the best local talent.

Discover how FEMSA ensures legal compliance and hires in over 9 countries with Deel.

See also: More Than a Service: EOR as a Strategic Partner in Business Growth

Hire hassle-free in 100+ countries through Deel owned entities

Looking to hire full-time employees in Germany, Brazil, or the Philippines? Need contractors in India, the UK, or Japan? Also hiring remote, distributed teams of employees through your own entities but need a single platform to oversee them?

Deel’s global people platform makes it simple. We handle the complexities of international hiring and team management, allowing you to focus on growth.

With our global coverage, built-in compliance, and top-notch data security, expanding into new markets is a breeze. Deel also integrates seamlessly with your favorite HR and accounting tools.

We offer immigration and visa support, multi-country payouts, onboarding, and 24/7 customer support in your language and time zone.

Learn more about Deel’s EOR services or book a call with our team to ask all your questions.