It might surprise you, but the Employer of Record market is exploding. Valued at around USD 4.5 billion in 2023, it’s projected to cross USD 7 billion by 2028. A trajectory driven by both global enterprises and the agility of startups and expanding SMEs.
More than six in ten SMEs across the U.S. and Europe are evaluating EORs as their primary route for entering new markets. The reason is clear: companies need to hire, manage, and, when required, exit talent across multiple jurisdictions without getting entangled in red tape.
By 2025, global hiring will have shifted from being a multinational advantage to becoming a survival strategy for startups. Whether it’s a fintech eyeing LATAM, a SaaS player testing APAC, or a healthtech expanding into the Middle East, founders and growth leaders face the same question: How do you select the right Employer of Record partner?
To help, we have provided a list of Employer of Record companies for startups and explained how to choose the one in the article.
What is Employer of Record? Why Startups are Turning to EORs
As it’s simplest, an EOR is a third-party company that legally employs talent for you in a region where you don’t have a local entity. It is different from PEO service. You can check this article to know more about the difference between EOR and PEO – https://connectresources.sa/employer-of-record-vs-peo-choosing-the-right-solution-for-your-business-expansion/
EOR Importance for Startups Competing Globally
EOR is important for Startups because today they are not just competing on product anymore. They compete on speed to market. Missing a hiring window in England or delaying a product launch in Singapore can mean losing competitive ground. That’s why EOR providers have moved from being a “nice-to-have” option to a foundational growth partner.
An EOR ensures that:
- Legal compliance is maintained.
- Financial settlements are accurate.
- Visas and work Permits are managed.
- Smooth Employer Transfer.
- Reputation and employee experience are protected.
Top EOR Companies for Startups: A Global List of Employer of Record Companies
Startups exploring employer of record solutions step into a crowded market. Dozens of companies present themselves as the best, but the reality is different. The right EOR depends on where you want to expand, how fast you plan to grow, and how much risk you can afford to carry.
We begin this guide with Connect Resources Saudi Arabia, our top choice for the Middle East, and then review other leading EOR companies that support startups worldwide.
5 EOR Partners Powering Startups in 2025
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Connect Resources Saudi – The Best Choice for Middle East Expansion
Best for: Startups and SMEs building teams in Saudi Arabia and the Gulf.
Key features:
- Deep understanding of Saudi labor law and Gulf regulations.
- Support for visas, iqamas, and government clearances.
- Expertise in Saudization, ensuring compliance with workforce quotas.
- Strong, direct connections with ministries and regulators.
Pricing model: Transparent and customized for each hiring case.
Why startups choose it: They want a partner who understands Saudization, iqamas, and government approvals. Global platforms cannot give that. Local expertise saves time, reduces mistakes, and keeps them compliant.
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Deel – Best for Fast Global Scaling
Best for: Tech-driven startups hiring quickly across multiple regions.
Key features:
- Hiring support in over 150 countries.
- Supports payments in local currencies—and even in crypto.
- Digital-first onboarding and contract management.
- Automated compliance and benefits.
Pricing model: Flat monthly fee per employee, making scaling predictable.
Why startups choose it: Founders pick Deel when they want to move fast across borders. Its technology makes hiring and paying international staff almost instant.
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Remote – The Experience-Focused EOR
Best for: Distributed startups hiring across many regions.
Key features:
- Owns its own entities (no third-party reliance).
- Fully transparent pricing with no hidden markups.
- Focused on employee benefits and equity options.
Pricing model: Flat, clear fees.
Why startups choose it: Remote is trusted by startups that want employee experience at the center. From equity management to health benefits, it makes compliance feel less like a barrier and more like a retention tool.
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Oyster – The Budget-Friendly Choice
Best for: Cost-conscious startups scaling slowly but steadily.
Key features:
- Covers more than 180 countries.
- Provides fair pay benchmarks and local benefits.
- Simple interface designed for smaller teams.
Pricing model: Subscription-based, varying by geography.
Why startups choose it: Oyster is often chosen by early growth companies that need reliable compliance but cannot afford premium pricing.
5. RemoFirst – The Lean Startup Option
Best for: Early-stage startups that only need the basics.
Key features:
- Simple onboarding with compliance guardrails.
- Payroll, contracts, and tax compliance without excess features.
- ALower costs than most other providers.
Pricing model: Competitive per-employee fees, perfect for bootstrapped founders.
Why startups choose it: Early teams often care less about fancy features. They just want payroll handled, contracts in place, and compliance checked off. RemoFirst gives them that at a price they can afford, which makes it a safe choice when every dollar counts.
How to Select the Best EOR for Your Startup: Top 5 Factors
The best Employer of Record? It doesn’t exist. One size never fits all. Because what’s best for a startup isn’t best for a scale-up. The right partner depends on your stage, your market, and how quickly you need to move. Choose fit over fame.
Expansion isn’t copy-paste. A SaaS company in Europe and a healthtech startup in the Middle East don’t face the same hiring hurdles. Which is why scrolling through lists of EORs won’t cut it. You’ve got to compare with your own playbook.
Here are the key points every founder should check before making a decision.
1. Country Coverage
Does the EOR really operate in the countries you need today? And will it still support you when you expand tomorrow? Many providers claim “150+ countries,” but numbers are vanity. What really counts is depth, not breadth. Choose an EOR with proven local expertise in the markets that matter most to your business.
2. Pricing Transparency
Global hiring is expensive. What hurts startups is when fees are hidden. Hidden fees can quickly drain budgets and disrupt growth plans. For startups, that unpredictability can kill momentum.
The solution? Always ask for a clear breakdown. That means knowing the cost of onboarding, payroll, benefits, and exits. The right EOR gives you straightforward pricing you can actually budget for. Because in global hiring, predictability is as valuable as growth.
3. Compliance Expertise
Every market plays by its own rulebook. Labor laws, taxes, and employee rights are different everywhere. For example;
- Labor laws in Dubai won’t look like tax rules in Paris.
- Employee rights in Riyadh aren’t the same as in Berlin.
The best EORs have local experts who stay ahead of these shifts, protecting you from fines, lawsuits, or unexpected setbacks. With the right partner, compliance becomes a strength, not a risk.
4. Scalability
Startup growth is never linear. Maybe today you’re testing one role in a new market. Tomorrow, you might need twenty hires at once. The right one flexes with you, offering the flexibility to scale up quickly or slow down when needed. A true partner adapts to your rhythm, not the other way around.
5. Customer Support
Support matters more than most founders think. Founders often underestimate the value of support until something goes wrong. Payroll delays or compliance questions need fast answers. In those moments, you don’t want a ticket system; you want a human. The best EORs give you real people, real answers, in real time. Strong support is critical when your own HR team is small.
Bringing All This Together
The top EOR companies of 2025 offer startups many choices. Some focus on speed. Others focus on cost. A few bring deep local knowledge.
The right choice is not about who is the biggest. It is about who fits your plan for growth.
When you study a list of employer of record companies, remember this. The partner you choose today will shape how confident you feel when you expand tomorrow. For any founder searching for the right employer of record for startups, the lesson is simple. Choose the EOR that protects you, supports you, and grows with you.
