International Hiring for Startups: A Complete Guide

Global hiring lets you access talent pools that are less competitive and often more cost-effective than the Bay Area or New York. But international hiring brings complexity: employment law, tax obligations, equity administration, and cultural differences all require careful navigation.

Why Hire Internationally

The talent advantages are significant. You gain access to engineers in markets where competition is lower. You can build around-the-clock productivity with teams across time zones. You gain diverse perspectives that improve product decisions. And for many roles, the cost savings are 30-60% compared to US-based hires.

How to Structure It

For one to twenty international hires, use an Employer of Record like Deel, Remote, or Oyster. They handle employment contracts, payroll, benefits, and compliance for a monthly per-employee fee. This is the simplest and lowest-risk approach.

For ten or more employees in one country, consider setting up a local entity. It is more complex and requires legal and accounting support, but it gives you more control and can be more cost-effective at scale.

Be careful with contractors. Misclassification risk is real and penalties can be severe. Only use contractor arrangements for truly independent work with limited hours and clear deliverables.

The Bottom Line

International hiring is a superpower when done right. Start with an EOR, be thoughtful about time zones and cultural differences, and invest in building an inclusive culture that works across borders.