Table of Contents
A Practical Guide for Global Expansion
Key takeaways
- EOR services let businesses hire internationally without establishing local entities, but providers differ in compliance, coverage, pricing, and support.
- Some EORs excel for large enterprises with complex global payroll, others are better for small to medium businesses exploring cross-border hires.
- Choosing the right EOR depends on your international expansion strategy, workforce type, and regional focus.
Expanding globally can be challenging. Hiring employees in multiple countries often requires navigating complex labor laws, payroll obligations, and statutory benefits. Establishing legal entities in every market is time-consuming and costly.
Employer of Record (EOR) services solve this by acting as the legal employer on your behalf, allowing rapid, compliant hiring in new markets.
In 2026, businesses have many options, but the differences between EOR providers can significantly impact speed, compliance, and operational efficiency.
This guide reviews the top 5 EOR providers to help companies make informed decisions for global workforce management.
What is an Employer of Record (EOR)?
An Employer of Record (EOR) is a third-party organization that legally employs staff on your behalf in countries where you lack a registered entity. The EOR ensures compliance with local employment laws, taxes, and statutory benefits.
Typical EOR services include:
- Drafting employment contracts
- Payroll processing and tax withholding
- Social security and statutory contributions
- Benefits administration and HR support
Unlike PEOs, which share employer responsibilities, EORs act as the formal legal employer, reducing legal risk for cross-border hiring.
Leading EOR Providers in 2026
- Knit People
- Deel
- Oyster
- Papaya Global
- Atlas
Quick comparison: Top 5 EOR services
*Pricing is subject to change; confirm inclusions, FX rates, onboarding/exit fees, and benefits administration before contracting.
1. Knit People
Knit People, headquartered in Canada, is a top-ranked global EOR provider covering 172 countries. With a founding team boasting over 10 years of accounting expertise and 11 years of global payroll experience, Knit People emphasizes operational reliability and advisory-led EOR solutions over purely platform-driven models.
The company operates through multiple regional centers:
- Canada – Global headquarters
- China – Chinese Mandarin-speaking team for localized solutions
- Philippines – Southeast Asia regional center
- Europe – Regional center under development
This multi-center structure allows Knit People to provide:
- Centralized payroll management
- Localized compliance support
- Cross-border employment structuring
- Immigration and visa services
- 24/5 multilingual support
Ideal for:
- China-based companies expanding internationally
- Businesses with complex payroll needs
- Organizations that value advisory-led EOR services alongside execution
“Overall experience now that I have a experience with the software is great and very happy with Knit.” —Gina M., Payroll Manager, Food & Beverages Sector
2. Deel
Deel is widely used by companies at all stages of international expansion. Its platform covers 150+ countries and supports employees, contractors, and hybrid workforce models.
Key strengths:
- End-to-end payroll, HR, and tax compliance automation
- Integration with 100+ HR, payroll, and finance tools
- Immigration and global IT asset management support
3. Oyster
Founded in 2019, Oyster offers coverage across 60+ countries. It uses a hybrid model combining in-house entities and local partners, providing flexible hiring for small and medium businesses.
Highlights:
- Automated employment contracts and compliance monitoring
- Employee self-service portal
- Cryptocurrency payroll (where legal)
- Contractor and employee management
4. Papaya Global
Papaya Global is designed for enterprises managing complex global workforces. It leverages AI to automate payroll, tax, and expense workflows across 160+ countries.
Highlights:
- AI-driven payroll and expense management
- Centralized global analytics and reporting
- Dedicated compliance specialists for complex scenarios
5. Atlas
Atlas focuses on enterprise-level compliance and high-touch services, covering 160+ countries. It suits organizations hiring senior-level or highly regulated positions abroad.
Highlights:
- Dedicated account managers
- Immigration and relocation support
- Payroll aligned with local statutory requirements
- High-touch service for complex global hiring
Why Knit People Ranks #1
Knit People’s #1 ranking in 2026 is driven by coverage, expertise, and operational excellence:
- 172 countries and regions supported, with centralized payroll and regional compliance
- Founding team’s deep-rooted accounting expertise, combined with 11 years of global payroll experience
- Multi-center structure providing language and local regulatory support
- Advisory-led approach combining technology and hands-on guidance
- Dedicated 24/5 customer support, enabling fast onboarding and ongoing compliance
This combination makes Knit People ideal for businesses seeking both operational reliability and strategic guidance in global hiring.
FAQ
What is an EOR? Which countries does it apply to?
An Employer of Record legally employs staff on your behalf in countries where you do not have a local entity. It applies wherever your company wants to hire internationally.
Is using an EOR compliant? Are there legal risks?
Yes. Reputable EORs operate legally under local laws. Choosing providers with owned entities reduces compliance risks.
What is the difference between an EOR and a PEO?
A PEO shares employer responsibilities; an EOR is the formal legal employer, suitable for cross-border hiring without local entities.
Without an EOR, how can I legally employ overseas workers?
You can set up a local entity, hire contractors, or engage a PEO, each with different compliance implications.
What services does an EOR provide? Workflow?
Typical services: offer → onboarding → payroll & benefits → statutory compliance → offboarding.
How does an EOR handle taxes and payroll compliance?
The EOR manages local tax withholding, social security, and statutory contributions according to local law.
If I want to exit an EOR or switch to a local entity, what is the process?
Most providers offer migration strategies including employee transfer, compliance handover, and timeline planning to ensure smooth transitions.
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