FIRST HIRE GUIDE
| Key Takeaways |
|---|
| — Your first-hire setup usually comes down to three questions: will the person work like part of your team, how long will the role last, and how quickly do you need to start? |
| — An EOR legally employs the person for you, so you can onboard without a local entity and still direct their daily work. |
| — A local entity gives you full control and a long-term presence, but setup time and cost vary by country. |
| — A contractor arrangement suits independent, project-based work. If the person works like an employee, it can create worker classification risk. |
| — Taiwan, Singapore, Malaysia, and Vietnam each have their own statutory contribution schemes, so requirements differ by market. |
| — Many companies start with an EOR and revisit their own entity as the headcount in a country grows. |
Your first hire in a new country raises a question that has little to do with the person you want to hire: who will legally employ them? You have three realistic options. You can use an Employer of Record (EOR), open a local entity, or engage the person as an independent contractor. Each one works well in the right situation, and each one can cause problems in the wrong one.
This guide helps international companies make that choice for a first hire in Taiwan, Singapore, Malaysia, or Vietnam. It starts with a simple decision guide, compares the three options side by side, and then looks at what each market involves.
In This Guide
1. Can a Foreign Company Hire in Taiwan, Singapore, Malaysia, or Vietnam Without a Local Entity?
2. How Do You Choose Between an EOR, a Local Entity and a Contractor?
3. EOR vs Local Entity vs Contractor: Side by Side
4. What Each Market Involves for a Local Employee?
5. How to Make Your First Hire in Taiwan or Southeast Asia?
6. Common Pitfalls to Plan For
7. How Slasify Supports Your First Hire
It depends on how the person will work with you. If the hire is an ongoing team member who works under your direction, an EOR or your own local entity is usually a better fit. If the work is independent and project-based, a contractor arrangement may fit instead.
The entity question matters because direct employment generally requires a local entity that can register as an employer, although requirements vary by country. In Singapore, for example, employers need a CPF Submission Number to contribute for Singapore Citizen and Permanent Resident employees (CPF Board). Confirm the details with a local professional advisor before you hire.
| If this describes your first hire | This option usually fits |
|---|---|
| The person will work set hours, use your tools, and report to your team on an ongoing basis | Employment: an EOR or a local entity |
| You need to start soon with one or two people and want to test the market first | EOR |
| You expect a lasting team in the country and need local contracts, licenses or bank accounts | Local entity |
| The work is a defined project or specialist task, and the person decides how and when to do it | Contractor arrangement |
These are starting points, not rules. Local law looks at how a working relationship operates in practice, not at the title on the contract.
Employer of Record (EOR): a company that legally employs workers on behalf of another business in a given country. The EOR issues the employment contract, runs payroll, pays statutory contributions, and handles local compliance. The client company directs the work.
| EOR | Local entity | Contractors | |
|---|---|---|---|
| Local entity needed | No | Yes | No |
| Legal employer | The EOR | Your entity | Nobody. The contractor is self-employed. |
| Payroll and statutory contributions | The EOR | You, with local advisors | The contractor handles their own taxes and contributions. |
| Control over daily work | You direct the work. | You direct the work. | Limited. The contractor decides how and when to work. |
| Speed to start | Generally faster, since no entity is needed | Setup time and cost vary by country | Fast to start |
| Main watch-out | Permanent establishment risk still needs review | Setup and ongoing compliance workload | Worker classification risk |
| Best fit | First hires and small teams testing a market | Larger, long-term presence | Project-based or specialist work |
A few notes on the table. If you already have an entity in a country, Slasify's Global Payroll can handle payroll there. For independent contractors, Slasify offers Global Contractor and Contractor of Record (COR). Worker classification matters: someone who works like an employee may be treated as one, whatever the contract says. See Slasify's guide to independent contractor legal risks for more.
Slasify has offices in Taiwan, Singapore, Malaysia, and Vietnam. The choice between an EOR, an entity, and a contractor follows the same logic in all four markets. What changes is the set of statutory schemes and the local test for worker classification.
Taiwan does not have a single social security tax. As of 2026, employers fund separate mandatory schemes: Labor Insurance, Employment Insurance, Occupational Accident Insurance, National Health Insurance, and the Labor Pension, each with its own rules and salary caps. Labor Insurance premiums are calculated on the insured salary grade table under the Labor Insurance Act (Ministry of Labor).
For a fuller breakdown of Taiwan payroll, leave and termination rules, see Slasify's Taiwan Employment Guide.
Employers in Singapore work with the Central Provident Fund (CPF), the national social security savings scheme. As of 2026, CPF contributions are payable for employees who are Singapore Citizens or Permanent Residents, at rates that vary by age, wage level and residency status. Employment rules sit largely under the Employment Act, Singapore's main labor law, which covers all types of employees with some exceptions.
For a fuller breakdown of Singapore payroll, leave and termination rules, see Slasify's Singapore Employment Guide.
Malaysian payroll involves the Employees Provident Fund (EPF), the Social Security Organisation (SOCSO, also known as PERKESO) and the Employment Insurance System (EIS). Employers register with the relevant agencies and pay contributions each month. Since October 2025, EPF contributions are also mandatory for eligible non-citizen employees, so confirm the rules for the hire's status.
For a fuller breakdown of Malaysia payroll, leave, and termination rules, see Slasify's Malaysia Employment Guide, and the articles How to Pay Employees in Malaysia: Salary, Bonuses & Benefits and Hiring in Malaysia: EPF, SOCSO & EIS Cost Breakdown.
Employers in Vietnam generally register their employees with Vietnam Social Security (VSS) and remit applicable social, health, and unemployment insurance contributions. Coverage depends on employee status and contract terms. These statutory contributions are governed by separate frameworks: the Social Insurance Law No. 41/2024/QH15, the amended Health Insurance Law, and the Employment Law governing unemployment insurance.
For a fuller breakdown, see Slasify's Vietnam Employment Guide and the article Understanding Mandatory Social Contributions in Vietnam.
1.Confirm your requirements. Define the role, country, target start date, and salary range.
2.Run a feasibility check. Confirm that an EOR arrangement is suitable for the role, country, and target start date. Evaluate the candidate's worker status, including whether they already hold local right-to-work or require work authorization or visa sponsorship. Additionally, confirm that your planned local operations do not trigger regulated business licensing, commercial contracting restrictions, or permanent establishment (PE) risks.
3.Review the quotation and sign the agreements. Review the comprehensive cost breakdown (salary, employer statutory contributions, and management fee), then execute the Master Services Agreement (MSA) and country-specific Work Order.
4.Meet your Account Manager: A designated Account Manager is assigned to your account, hosting a kickoff call to finalize onboarding timelines, payroll cutoffs, and benefit enrollments.
5.Onboard the employee: Slasify drafts a compliant, bilingual local employment contract tailored to statutory standards. Once reviewed and signed by the candidate, mandatory statutory registrations (such as social insurance and tax withholding setup) are completed.
6.Run payroll and manage ongoing compliance: Slasify executes monthly salary disbursements, remits statutory employer and employee contributions to local authorities, and provides itemized monthly payroll reports.
In Slasify's typical process, allow about two weeks from the point when the service agreements have been signed and all required information and documents have been provided. Day 1 begins once both conditions are met, and the kickoff meeting happens around Days 2–4. The employment contract is drafted, reviewed, and signed around Day 5–9, and remaining onboarding steps such as the welcome email, platform invitation, and local registrations finish around Day 10–14. Timing varies by country, vendor involvement, and service type, so use this as a planning reference, not a promise.
Unsure which setup fits your first hire? Request a feasibility check for your target country.
—Treating contractors as employees in all but name. If someone works under your direction, on your schedule, as part of your team, an employment arrangement is usually the better fit.
—Assuming one country's rules apply in every market. Taiwan, Singapore, Malaysia, and Vietnam each have their own contribution schemes and employment rules.
—Overlooking permanent establishment (PE) risk. An individual's activities in a host country can raise corporate tax exposure for the client company, depending on their role, length of stay, and whether they regularly negotiate or conclude contracts on the company's behalf. Permanent Establishment (PE) exposure depends on the employer's home jurisdiction, the worker's activities and authority, local law, and any applicable tax treaty under OECD guidelines. While an Employer of Record (EOR) manages legal employment, payroll, and statutory benefits, it does not automatically eliminate corporate PE risk. For a country-by-country overview, see Slasify's guide to paying remote employees in Asia without triggering PE risk, and review your own situation with a qualified tax advisor.
—Opening an entity before you have tested the market. For a single hire, entity setup and ongoing compliance can outweigh the benefit. An EOR lets you start first and decide later.
—Staying on an EOR longer than makes sense. Signs it may be time to look at your own entity include a growing team in one country, a need for local contracts, licenses, or bank accounts, and a long-term commitment to that market. Once an entity exists, Global Payroll can handle payroll there.
Slasify was founded in Taiwan in 2016 and is now headquartered in Singapore, with offices in Taiwan, Singapore, Malaysia, and Vietnam. Its Employer of Record, Global Payroll, Global Contractor, and Contractor of Record products cover each path outlined in this guide. Slasify reports supporting payroll and hiring in more than 150 countries and serving more than 1,000 companies. Rather than navigating local rules alone, your team works directly with a dedicated in-country Account Manager to evaluate employment classification and structure the right setup for your very first hire, adapting seamlessly as your international footprint expands.
A first hire doesn't have to wait for an entity, and it doesn't have to be a contractor if the role is really a team position. Start with the practical questions: how the person will work, how long the role will last, and how soon you need them. An Employer of Record can then cover the employment side while you focus on the work. Revisit your own entity once the team in a country is large enough to justify it.
Planning a first hire in Taiwan, Singapore, Malaysia, or Vietnam?
Request a feasibility check based on the role, hiring country, employment status, and target start date.
Request a feasibility check
It depends on your hiring model. Foreign businesses without a local entity can compliantly engage talent through an Employer of Record (EOR) or hire independent contractors if no substantive subordination exists. Before hiring directly, confirm the local registration, payroll, and employer requirements for the country and business structure you plan to use.
It depends on your timeline and long-term plans. An EOR suits first hires and small teams because you can start without setting up a local entity. Your own entity may fit better once headcount grows, or you need local contracts, licenses, or bank accounts. Many companies start with an EOR and revisit as the team grows.
Only if the person genuinely works independently. Local law looks at how the relationship works in practice, not at the contract title, so someone who works like an employee may be treated as one. Slasify's Global Contractor and Contractor of Record support genuine contractor arrangements. Confirm the local test before you start.
About two weeks in Slasify's typical process, starting once the service agreements have been signed and all required information and documents have been provided. Timing varies by country, vendor involvement, and service type. Service agreements are signed on Day 1, followed by a kickoff meeting around Days 2–4. The localized employment contract is drafted, reviewed, and signed between Days 5–9, while final onboarding steps, such as platform invitations, welcome emails, and statutory local registrations, typically wrap up around Days 10–14. Treat this timeline as a practical planning guide rather than a fixed guarantee, and verify target-country requirements before locking in a start date.
Yes. You manage day-to-day work, while the EOR serves as the legal employer and handles employment contracts, payroll, and statutory contributions. Daily reporting lines, tooling, and team culture stay with you, but you must coordinate formal employment actions with the EOR.
Not automatically. An EOR handles employment compliance, but permanent establishment (PE) risk is a tax question that depends on the employee's role and activities in that country. Review it with a qualified tax advisor, and see Slasify's PE risk guide for Asia for country-by-country detail.
Yes, many companies do. They start with an EOR and open an entity once headcount in a country justifies it. Plan the switch early, because it involves setup, local registrations, and moving employees, and requirements vary by country. A Slasify Account Manager can walk through timing and options.
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