When you are a growing business and you have plans of gearing forward and expand, you most likely have in mind the processes or procedures that needs to be done, from hiring staff and the possibility of establishing a new corporate entity.
Somehow, when you do decide to expand in counties in Latin America, you can expand your business in a more convenient way without the need for establishing a new corporate entity. Employer of Record, or EOR, makes this possible, being it an organization that contracts with business expanding internationally and they take care of legal responsibilities of employing your employees and all formal employment tasks in the country you choose to have the business.
It allows you to overcome the regulatory and cost hurdles if you decide to employ workers in a remote location and since certain countries have their own employment, payroll and work permit requirements for non-resident companies it can be an obstacle to meet those requirements, thus the use of Employer of Record comes handy.
You are the original employer, but the Employer of Record is considered to be the registered employer of the employee but it is only limited on dealing with establishing the legal and regulatory requirements of immigration, employment, and payroll, but does not get involved in the daily operation of the work.
EOR functions as though it is your HR or administrative function and they can range from International Professional Employer Organization PEO, Foreign Subsidiary as a Service (FSaaS), Administrative Services Organization (ASO), and the Business Process Outsourcing (BPO). These types of Employer of Record caters to your different needs depending on the type of business that you have and how expanding internationally works and functions.
Therefore, using Employer of Record when expanding internationally will give you the benefits as easy access to immigration compliance, ease of running payroll in the host country, and there will be no need for you to go for local incorporation.
This is absolutely a very good option that will be beneficial for you and can be efficient as well as cost-effective and secure way of bringing your own business to international countries and if you want to dig in deeply on how this can be of importance to you, you can check on websites that offer this kind of service to which country that you prefer, especially in the Latin American countries and know what you need to do.