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How Using an Employer of Record Solution Can Accelerate Your Business Expansion Goals in 2019

In today’s global economy, international expansion is an attractive option for companies looking to grow their revenue streams and take advantage of a global marketplace. In this post, we provide six reasons why using an employer of record solution can accelerate your business expansion goals this year.

When considering expanding internationally many businesses think that the only way to achieve their global goal is by setting up their own entity in a foreign county. It is true that if a company is building infrastructure and has set long-term plans for the country, then establishing an entity may well be the best solution. However, if a company is looking for a more cost-effective and faster way to expand their business and hire workers globally, then an Employer of Record (EOR) solution could be considered.

What is Employer of Record?

Employer of Record (EOR) also known as International PEO is a global employment solution whereby a third-party provider hires your employees on your behalf. The EOR provider becomes the legal employer and takes responsibility for the entire employment relationship, employment benefits and HR, leaving the end client company to manage only their day-to-day responsibilities.

Below we have chosen some reasons why using an employer of record solution may help your international expansion goals.

1. Provides faster set up into new markets

If a business is looking to expand quickly without delays and has immediate hiring needs, then working with an EOR provider could be the answer. Whether it’s testing a potentially lucrative market or hiring new people, with an EOR provider you can have your worker employed legally in a foreign country in just a few days. Using an EOR solution enables business to employ remote workers compliantly in different countries at the same time without having to set up corporate entities which allow faster expansion into new markets.

2. Reduces expansion costs

Expanding globally can bring many challenges. Strict regulations and growing costs can make deciding to take your business international a difficult prospect. The costs of setting up a foreign entity varies dramatically from country to country and they include establishing an entity, registering with all the right tax and labour authorities, opening a foreign bank account and setting up a payroll vendor. By partnering with an EOR specialist, businesses can reduce their expansion costs by thousands of dollars and be present in a new international market quickly and compliantly without all the hassle of setting up an entity.

3. Minimizes ongoing maintenance costs

Once an entity has been established, there are ongoing maintenance costs to consider. These ongoing maintenance costs can vary depending on the number of employees, new hires and terminations. Each country has its own employment rules and regulations which requires hiring local tax and employment experts. By choosing to use an EOR solution, there is no need to engage with lawyers, solicitors or foreign tax authorities because the EOR provider has in country experts who ensure all workers are legally and fully compliant to provide services in the new market.

4. Helps your workers stay compliant

Expanding internationally can be complex, as employment laws are inherently different around the world. Staying compliant should be a major concern for all businesses. Tax and social security laws vary from country to country and, as these laws change regularly, it can be very time consuming and expensive to stay compliant in an unfamiliar country. By choosing to partner with an EOR provider, you will receive the correct advice. An EOR provider has dedicated international in country specialists in who understand each country’s employment laws and will help mitigate risks and help your workers stay compliant.

5. Supports companies post M&A

If a business has completed a merger and acquisition and/or has acquired workers based in a country where they do not have an entity, an EOR solution can help the transition. By using International PEO/EOR solutions, businesses can avoid having to set up a new entity and have the workers quickly and legally employed without the burden of establishing a corporate entity.

6. Enables businesses to focus on their core business activities

Outsourcing non-core business activities is becoming increasingly popular and taking away employment risk in certain jurisdictions can be very attractive. EOR solutions make it easier for business to concentrate on the running of the core day-to-day business. Business can focus on core activities without the hassle of organising global payroll and HR. EOR solutions save valuable time and resources that would be spent on understanding the complexities of setting up in country.

Using Capital’s international employer of record (EOR) solutions for your international expansion plans

Capital GES is an outsourced employment specialist that has been operating globally for 25 years. We have helped thousands of clients achieve their goal of establishing a business presence overseas. Whether your company is looking to expand into Europe, Latin America , Asia or South Africa, Capital GES can help. Our team consists of dedicated international in-country specialists who are on-hand to provide round-the-clock support whenever our clients need them.

If you are thinking of expanding your business and looking to hire internationally, contact us at or via phone: +41 32 732 97 00 or +1 833 972 6346 to see how we can help.

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