Expand Your Business Globally with Employer of Record – Over the past few years, more opportunities have emerged for companies to globalize with their business. Advanced technology, economic growth, access to new markets and skilled labor are all factors that motivate companies to expand beyond their borders. When considering expanding internationally, many businesses think that the only way to achieve this goal is to establish their own entity in a country.

Setting up an entity can be very expensive and time consuming. Understanding company law and employment, compliance and local regulations and customs can make this process complex and act as a real disruption to business. If a company is building infrastructure and has set a long-term plan for the country, then establishing an entity might be the best solution. However, if a company is looking for a more effective and fast way to develop their business and employ workers, then the Employer of Record (EOR) solution can be considered . The EOR model meets the needs of modern businesses, enabling companies to quickly enter new markets and hire workers legally and efficiently.

What is Employer of Record?

What is Employer of RecordWhat is Employer of Record

Employer of Record (EOR) also known as International PEO is a global employment solution where a third party provider employs your employees in your name. The EOR Provider becomes a legitimate and responsible employer for all work relationships, work benefits and HR. The final client company only manages day-to-day responsibilities.

Why Employer of Record?

Why Employer of Record

Businesses that need to recruit staff abroad face a series of processes and obstacles. Researching and complying with various local laws can present major challenges. Each country (and even each state or region) will likely have different job, payroll and work permit requirements for foreign companies doing business. Partnering with an official Employer of Record saves you from having to create a formal entity in a country. They become domestic staff for you, saving a lot of your time and effort. While companies can arrange their own local mergers, registrations and payrolls, this may not be ideal for those new to the market, or small businesses with limited resources.

How does the Employer of Record work?

How does the Employer of Record work

An official EOR is an EOR that is equipped with legal documents to handle business administration processes on your behalf. You remain responsible for the daily management of your employees. Meanwhile, your EOR manages all steps of local employment such as employment contracts, payroll, taxes & deductions.

Specifically, EOR is a legal entity that:

  • Act as an entity that stands to run local payroll that is appropriate for your staff;
  • Comply with all labor laws relating to local contracts and worker protection;
  • Notifies you of the required notification period, rules of termination of employment and severance pay;
  • Responsible for ensuring that you continue to comply with all local laws.

Benefits of Employer of Record

Benefit Employer of Record

  • No Local Entity needed, setting up a business abroad can be time-consuming and expensive. This often requires local knowledge and support to ensure compliance. Instead, EOR partners already have legal entities that can handle various aspects of work and payroll requirements in a country.
  • EOR is an intermediary between your company and employees.

All in One Payroll Management

All in One Payroll Management

Most countries will require companies with employees assigned to carry out payroll according to local standards with registered entities. The practice of ‘remote payroll’ (transferring or sending from the payroll of the country of origin) is rarely permitted, especially for long-term assignments. The key aspects of carrying out salary payments in a country are calculation and statutory deductions, including pensions, health insurance, and taxes. EOR takes care of all these important details, to ensure payroll is accurate and appropriate for each employee assigned. EOR is the perfect employment solution, providing the entity needed to run payroll with expertise in cutting state taxes and tax rules. This ensures that there are no problems with local authorities and is the most cost-effective way to quickly hire employees from abroad.

Partnering with EOR means they handle what is usually your administrative responsibility. This includes new employee arrangements, data collection, employment contracts, and all correspondence with regulators for ongoing compliance with taxes and insurance. This frees up your time and energy to focus on your core operations and business goals.

Start Now

Employer of Record

If a business wants to expand into more advanced economies in Asia or test potential markets on other continents, EOR can be a better solution for establishing an entity. EOR solutions are a more cost-effective and faster way to develop business and employ workers in foreign countries in an obedient manner. Businesses can rent internationally without risk and can operate within a few days without having to create entities that allow more time to focus on their core business.

Indoservice is an experienced employee and payroll services company, and therefore we offer EOR services under our company, if you are ready to hire an employee, but are not ready for the legal complexity that accompanies them. Our professional staffing and payroll services can help you. For more information, contact us at email: admin@indoservice.co.id and Call/WhatsApp +62877-1449-8500 for special offers.


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