LATEST INTELLIGENCE you of the cost , time and distraction of bureaucracy and more importantly , allows you to focus on growing your business . need a significant amount of capital in a local bank account . It ’ s an expensive and long process , which is a hurdle if your ambitions are urgent .
An EOR hires the employees in the new country under its local business entity and takes on all of the legal risk . As the legal employer the EOR is responsible for :
• Visa , immigration and work permits
• Country-compliant payroll and taxes
• Advice on cultural and language awareness
• Adhering to local labor laws
• Advice on required notice periods and termination rules
Additionally , it ’ s often compulsory to handle payroll locally to ensure that social security contributions and taxes are compliant . Running a timely and correct payroll internationally is challenging , and its complexity only rises when adding more countries into the equation . p
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Entity and Payroll
An EOR negates the need for creating a business entity because your staff will technically be employed by the EOR . You retain control but avoid the risks of tax and labor compliance wherever you wish to work .
Most companies are legally required to have a local business entity to pay employees and these laws vary by country , or even by state or province . This makes it challenging to be legal without breaking the bank .
Some countries require an entity to have a local physical office or real estate lease , and often you ’ ll
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