Why Do You Need an Employer of Record (EOR) Partner?

The ASEAN market is one of the most dynamic and rapidly growing in the world. With a population of over 660 million people and a combined GDP of over $3 trillion, it offers businesses of all sizes a wealth of opportunities.

However, expanding into the ASEAN market can be challenging. Each country has its own unique set of employment laws and regulations, which can be difficult to understand and navigate for foreign businesses. Additionally, setting up a legal entity in a new country can be costly and time-consuming.

This is where Employer of Record (EOR) services come in. An EOR is a company that acts as the legal employer for your employees in other countries. This means that the EOR is responsible for all aspects of employment, including payroll, taxes, benefits, and compliance. However, why do you need this? 

EOR Benefits to Businesses Expanding Into the ASEAN Market

Local Expertise

EORs have a deep understanding of the local employment laws and regulations in the countries where they operate. This can help businesses ensure compliance and reduce risks. For example, EORs can help businesses develop employment contracts that comply with local law, and they can also help ensure that businesses are paying the correct taxes and social security contributions.

Cost Efficiency

Setting up a legal entity in a new country can be expensive and time-consuming. EOR services offer a cost-effective alternative, allowing businesses to focus on their core business operations. EORs typically charge a monthly fee based on the number of employees that they employ on a client's behalf. This fee can vary depending on the country and the services that are provided, but it is typically much lower than the cost of setting up and maintaining a legal entity.

Speed to Market

Time is money, especially when it comes to expanding into a new market. With an EOR, you can hire talent and start operations quickly, eliminating the delays associated with traditional market entry methods. EORs already have the infrastructure and expertise in place to hire and manage employees in the countries where they operate. This means that they can get your employees up and running quickly, so you can start generating revenue sooner.

Risk Mitigation

EORs handle HR and payroll, reducing your exposure to employment-related risks. For example, EORs are responsible for ensuring that employees are paid on time and correctly, and they are also responsible for paying taxes and social security contributions on behalf of their employees. This can free up businesses to focus on their core business operations without having to worry about the complexities of HR and payroll compliance.

EOR services can be a valuable asset for businesses of all sizes that are looking to expand into the ASEAN market. By outsourcing HR and payroll to an EOR, businesses can reduce risks, save time and money, and focus on their core business operations. Are you ready to expand your business into the ASEAN market? Let an Worknetics Global help you make it happen!