What are the primary issues when considering hiring employees in a foreign country? (Webinar Attendee Question)

Make sure you have the right fit as terminating employees can be an expensive and lengthy process.

The following comes to mind: (1) payroll should be administerred locally to ascertain proper treatment of taxes and benefits, (2) employment agreements with consideration to local customs/regulations, (3) foreign entity strategy so as to separate US/foreign business ownership and taxes, (4) defined roles/responsibility that conforms to foreign entity tax considerations (i.e. cost plus may not allow foreign employees to sign contracts, etc.) and (5) plan for managing your foreign employees.

Consider using a firm such as Nair & Co. to take care of your payroll and HR needs and assist you with related international expansion administrative issues.

I concur with all the comments. Another company to consider for taking care of your administrative and legal needs is High Street Partners. There is the larger issue that Bob mentioned which is the legal structure. Will you have a rep office, branch or subsidiary and that choice will influence your overall costs and operations.

Bob nailed the key points! I would add:

1. Understand the implications of granting stock options to your non-US employees.
2. Try to address termination of employment provisions as best you can under local legislation within the employment agreement.