You found the right person. They just happen to live in a country where you have no office, no subsidiary, and no plans to build one yet. Setting up a local entity can take weeks and cost thousands, so what are your options?
One of them is the Foreign Registered Employer model. Niural now lets you flag an entity as an FRE directly in the platform, so the right compliance requirements surface before your first payroll run, not after.
What a Foreign Registered Employer is
A Foreign Registered Employer is a company incorporated in one country that directly employs workers in another, without setting up a local legal entity there. Rather than forming a subsidiary, the company registers with the destination country's tax and social security authorities for payroll purposes. Your home-country entity stays the legal employer; the employee lives and works abroad.
It sits between two more familiar options. With an Employer of Record (EOR), a third party becomes the legal employer. With a local entity, you build a full corporate presence. The FRE model is the middle path: more control than an EOR, lower fixed cost than an entity, with direct employer responsibility that lands on you.
What's new in Niural
When you set up or edit an entity, you can now designate it as a Foreign Registered Employer running overseas payroll. Once flagged, Niural uses that context to identify the payroll compliance requirements tied to that specific arrangement early in the process.
It's a small input with an outsized effect: the system knows this isn't standard domestic entity payroll, and it treats it that way from the start.
Why capturing it upfront matters
FRE setups carry distinct obligations that standard entity payroll doesn't: local tax registration, social contributions, and country-specific reporting, plus permanent establishment risk to watch as headcount grows. Miss one, and you tend to find out mid-payroll or during an audit.