Traditionally, establishing a presence in a new country also meant setting up a local branch or subsidiary. Eos outsourced employment solutions present an alternative that can be faster, cheaper, and more easily managed. Which model is right for you?
Many companies proceed with setting up a local entity without ever asking themselves this basic question – Do your business objectives really require a local company, other than as an employment vehicle?
If not, consider those managing multiple entities, with varying reporting periods, tax regimes, and compliance laws that can divert resources and mind space from your primary business goals.
Although Eos is happy to help you establish your own local entity there are a lot of benefits to using an outsourced employment model to hire and manage your international workforce, including:
Cost savings
Establishing an entity can be expensive – in addition to registration fees, registered addresses, local shareholders or directors, etc all add to the costs.
Even after set up, the monthly costs for maintaining a foreign subsidiary can be high and unpredictable, and tax implications can be hard to predict. When your business is scaling up this can be a huge concern – un-forecasted costs can endanger your whole enterprise.
Eos absorbs all of this and provides you with an easily managed fixed monthly fee per person.
Our service also effectively provides you with a whole HR services, payroll, and accounting department. We tackle the full range of these responsibilities efficiently and effectively so you don’t need to hire local finance or back-office staff. We can even invoice your local clients for you if needed.
Eos adds further value by providing cost-efficient advice on employment, salary, benefit, and tax structuring.
This means:
- You avoid the expense of setting up and managing an entity in the country of operations, whilst our flat monthly fee simplifies forecasts and avoids surprises in your bottom line
Efficiency
Setting up a local company in a remote location with different laws, processes, and regulations can be labor-intensive and time-consuming and carries a lot of compliance risks. Focusing on this can divert your resources from your primary goals. The Eos team takes care of these day-to-day operations for you locally – you leverage our expertise while you focus on your priority – expanding your business.
This means:
- You can move forward immediately with onboarding your local team without unnecessary delays or concerns
- No time loss or resource drain due to company establishment or management in a foreign jurisdiction.
- No requirement to find, vet and hire local immigration, labor, or tax specialists
- Reduced admin burden – we handle the headaches
- A scalable solution – whether onboarding one person or offboarding 50, our team can manage it, and the cost can be forecast and manage
Compliance
To confidently manage compliance in a foreign jurisdiction can require significant investment in expert consulting services and locally experienced professional staff. Any shortcuts taken in compliance while you`re growing your business can cost you big in the long term. By using Eos as Employer of Record, you avoid the exposure a local subsidiary inevitably creates. Our experienced bilingual staff handles all the daily issues that require local expertise to ensure full compliance without the cost or headaches. When needed, we can guide you through the maze of contract, labor, and tax laws, termination payments, etc.
This means
- No local entity and managed PE risk mean you reduce your corporate exposure to tax and labor liabilities. MORE ABOUT PE RISK
- Peace of Mind – For your HQ management so they can focus on growing your business, without the distraction of worries about the unknown; For your new employees in Asia, that they are hired into a well established local company and supported by experienced professionals.
Is PEO the right solution for you?
Need a local subsidiary for branding or invoicing, but don’t want the admin headaches of a fully staffed branch? Some clients opt for a hybrid model, under which they set up an entity solely for branding or client invoicing purposes. Eos employs all staff under our own entity. This greatly simplifies the operations and compliance/liability exposure of your subsidiary. Eos can manage the establishment and bookkeeping services for your local entity, providing a headache-free total solution.
