Assistance of Employer of Record provider

If you're actively involved in planning your organization's expansion into international markets, you're aware of the many factors to consider. When speed and local expertise are critical concerns for your organization, turning to an EOR may be the most effective way to achieve your global growth objectives.

Here are some common scenarios in which organizations like yours have sought the assistance of an EOR provider to support their global expansion efforts.

Exploring new markets:
An EOR enables you to assess the viability of entering international markets by hiring workers in your chosen target countries. You can initiate operations in the new country with your newly hired staff, allowing you to "test the waters" without committing the time and financial resources required for entity establishment.

Mitigating independent contractor compliance risks:
If your growth strategy relies on international independent contractors, there is a risk that their work closely resembles the tasks typically performed by employees under local regulations. This could potentially expose you to employment and tax compliance issues. Engaging an EOR to hire your contractors on your behalf, ensuring compliance with all local regulations, can help prevent noncompliance penalties.

As a temporary entity solution:
Suppose your organization has identified a promising growth market and determined that establishing a legal business entity is the preferred approach. However, you need to initiate operations swiftly, and the entity setup process is known to be lengthy and complex. By leveraging an EOR, you can have your workforce operational in the new country within weeks while concurrently working on the entity setup process.

Facilitating acquisitions:
If your organization has recently acquired a workforce in a new country but lacks a compliant method for paying these new employees because the acquisition did not include the legal business entity, an EOR can step in and ensure that employees are paid in full compliance on your behalf. This arrangement can be temporary, lasting until your organization establishes its own in-country entity or continues indefinitely.