Both routes can support UK hiring, but they suit different stages, timelines and levels of long-term commitment.
Speed and initial administration
An EOR may reduce the amount of entity-setup work needed before the first employment arrangement. Establishing a company creates a direct local structure but generally involves more setup, professional advice and ongoing administration.
Control and operating model
A company provides direct control over the employing entity. Under an EOR arrangement, responsibilities are shared under contract, while the client still manages the person’s normal daily work.
Cost considerations
An EOR usually charges a service fee in addition to employment costs. A company may involve incorporation, accounting, tax, payroll, insurance, legal and internal administration costs. The better comparison depends on hiring volume and duration.
Questions to consider
Consider the number of planned hires, expected UK presence, start dates, need for local contracts, permanent establishment and tax questions, internal capability and the length of the market commitment.
This article provides general information only. It is not legal, tax, financial or immigration advice. Requirements depend on the facts of each engagement.