For most UK startups, the first international hire can make or break expansion plans, making it a crucial milestone. When a strong candidate appears in Croatia or Indonesia, the real question is not whether to hire them, but how to employ them properly.
The Signs It Is Time to Look Beyond the UK for a Hire
Timing is so important. Hiring abroad too early brings additional complications, risks, potential increases in overheads and distractions, while hiring too late can cost you customers.
Common expansion triggers include:
- Customers in a time zone your UK team cannot cover
- A skills gap that local recruitment has failed to fill
- Revenue from an isolated market that justifies having someone on the ground
- Investors or partners expecting a local presence
If two or more apply, a first international hire is strongly worth considering.
What Changes When Your Employee Lives and Works Abroad?
A hire abroad is not simply a UK hire in a different location. Local employment law, tax, social benefits and notice periods all apply, and each country sets its own rules and regulations. We looked at how payroll differs from one country to the next in our guide to the most popular global payroll models.
As KPMG’s summary explains, the OECD updated its guidance in November 2025 on when a home-working employee abroad may create a taxable presence for their employer.
It sets a 50% working-time test, so it’s certainly worth taking a closer look at the wider implications of your first global expansion.
Three Ways to Make a First International Hire Without an In-House Legal Team
Each route balances speed, control and risk differently.
Setting up your own entity abroad gives full control, but it takes time, local advisers and a bank account in your new market, which is a lot to take on for a startup business owner.
Engaging a contractor is quicker and more flexible, but it runs the risk of misclassification. If the person works like an employee, local authorities may treat them as one.
An employer of record employs the person locally on your behalf, handling contracts, payroll and statutory obligations while you set the work.
Startups that want to test a new market can use a provider such as GoGlobal to make a first hire without setting up an entity, and the provider can then help formalise things once the dust has settled.
To make a first hire without setting up an entity, and the provider can then help formalise things once the dust has settled.
None of these removes the need for professional advice on tax and work visas where needed, but they limit what a small team has to manage alone.
A Short Checklist Before You Make the Offer
- Choose the model you will use to hire them
- Budget for the total cost of their employment
- Use a written contract that meets local laws
- Check the person’s right to work in that country
- Plan when you will move to your own entity
Most startups do not need an in-house legal team for a first international hire. Instead, they need a clear structure, a realistic budget and reliable advice at critical junctures.
