How to Simplify Global Expansion with International PEO

How to Simplify Global Expansion with International PEO

How to Simplify Global Expansion with International PEO International PEO stands for Professional Employer Organization, which is a global employment solution that helps companies with their global expansion process by hiring employees all across the world and doing it under the country's compliance regulations at a fast speed. This lifts a big burden off the company's shoulders because they do not have to establish a foreign legal entity. International PEO uses its global infrastructure that comes with their set of locally-compliant employment contracts and helps companies by hiring their employees. The PEO then becomes their legal Employer of Record. This way companies can solely focus on growing their business.

International PEO vs Entity Establishment

When it comes to International PEO, all companies have to do is simply sign one contract, and the PEO becomes responsible for hiring and the company's employees can begin operating in-country. When companies want to establish an entity, they need to make sure all their documents are notarized in-country, draw up the employee contracts, set up bank accounts, understand their taxes, register their offices, and take care of all immigration processes among others. They also need to maintain an ongoing compliance which will require a full team of local accountants, lawyers, HR professionals and payroll specialists. PEO is a lot more cost effective for companies when compared to setting up and maintaining a foreign entity. It also takes a lot less time to set up in a foreign country. International PEO can begin operating in as little as 48 hours in the new market country, whereas it takes nearly three to four months to establish an entity in a new country. The responsibility of compliance is also taken care of by PEO. It is a lot more flexible because the process of entering and exiting countries becomes easy and without any liabilities.  International PEO is also very scalable and easy to expand, whereas navigating all processes of establishing an entity in entirety in each country is a time and resource consuming process.

Key Takeaways:

  • International PEO is a faster process for companies when they consider global expansion
  • It is a more cost-effective process
  • PEO takes care of all hiring and compliance related needs on the company's behalf
  • Companies can start operating in a new market within the week when they utilize PEO services

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