What is Global Expansion: A Guide to Success

Atlas Team Profile Photo

Atlas Team

Atlas helps innovative companies like yours to expand, onboard, manage and pay international teams in 160+ countries.

Published: 06 Feb 2024

Launching an international operation isn’t typically straightforward. Each country has different business regulations and employment laws. You can run into supply chain issues. A product that works in one country can fail in another—but when a global strategy succeeds, the rewards can be huge.   

Often, businesses partner with an Employer of Record (EOR) to help streamline the process. This limits some of the risk, but there are still things you need to know before you enter a foreign market.  

What Are the Benefits of Global Expansion? 

Global expansion opens up a world of opportunities for growing businesses. Here are some of the biggest benefits: 

  • Diversification of revenue and risk: Global expansion can help businesses diversify their revenue, which reduces their reliance on a single market. This can help mitigate risk from economic downturns and market-related challenges. Diversification leads to financial resilience.  

  • Opportunities for growth in new markets: Global expansion gives companies a chance to tap brand new markets and potentially reach millions of new consumers. It can also help create stronger brand recognition.  

  • Support across multiple time zones: Businesses can better serve international clients by launching local operations in different time zones.  

  • Access to specific talent: Global expansion gives businesses access to professionals with diverse skills and experiences, helping to fuel innovation.  

  • Better profit margins: Global expansion can help businesses achieve economies of scale. They can also reduce operational costs by establishing international operations in areas with a more affordable cost of living.  


How EORs Simplify Global Expansion  

To launch people operations in a new country, you’ll have to create a legal business entity within that country. There are all sorts of structures—from limited partnerships to corporations. The one common denominator is that each structure involves a lot of paperwork, has very specific legal requirements, often requires the use of multiple vendors, and can take time to establish. 

Beyond this, once an entity is established, global expansion is not as simple as renting an office and hiring a few workers. You’ll need to navigate legal red tape, understand cultural nuances, and overcome communication barriers from language to time zones.  

This is where EORs can help.  

Acting as a legal employer the EOR negates the need to establish a local business entity, whilst enabling access to their own entities around the globe, whose experts can ease your transition to global expansion. You’ll still be able to retain control of your employees, but the EOR will handle legal compliance, taxes, employment law, contracts, and payroll.   

Additionally, an EOR can help your business understand the different cultural needs and preferences of a new market, and assist in managing chains of communication, limiting communication challenges linked to language and time zones.  

Our EOR handbook can help you weigh your options. 


Increasing Expansion Efficiency with EORs  

Meticulous planning and research are the best way to expand efficiently. You’ll need to set long- and short-term goals, outline a strategy, and do some serious market research. Don’t underestimate the value of a quick market entry. Timing can sink or swim a business as you rack up costs preparing for launch. This is, perhaps, one of the most valuable reasons to hire an EOR. This type of service can: 

  • Increase speed and flexibility: Businesses can avoid the time-consuming process of establishing a legal entity in every country and setting up an HR infrastructure. You can onboard employees in a matter of days and test a new market quickly. 

  • Ramp up compliance and mitigate risk: EORs are experts in local compliance—and it’s their job to follow local labor laws and business regulations since they’re the legal employer.   

  • Streamline international HR operations: It can be difficult to manage HR functions for international employees. An EOR will handle foreign payroll functions, benefits administration, onboarding, and recruitment.  

  • Better employee experience: EORs help maintain a compliant and accurate payroll, which helps increase employee retention. In addition, the Atlas HXM platform helps employees manage their work lives and benefits in one easy-to-use space. 

  • Increase employee mobility: An EOR can aid in employee mobility, facilitating remote and hybrid work. They’ll handle the visa and immigration requirements of your worksite employees.  


Want to learn more about how an EOR can help kickstart your global expansion? Talk to an Atlas representative today.  



The information contained in this article is intended for informational purposes only and is not intended to be construed as legal advice. The content is provided as updated at the time it was published only without any warranty of any kind, expressed or implied. Atlas is not a law firm and the material provided should not be used in lieu of professional legal consultation. It is recommended that readers seek legal advice from a qualified attorney or legal expert for guidance on any legal issues addressed in this article. Atlas shall not be responsible for any damages or problems that may arise from the use of the information provided in this article.