Employer Of Record

Creating an entity versus using a direct EOR (part II)

Creating an entity versus using a direct EOR (Part II)

Last week we told you 3 advantages that our proposal has over another when it comes to hire an employer. Today, we give you 3 more reasons to choose us.

There are many variables to look at when choosing a way of expanding your company. Last week we explore 3 variables, here we explore 3 more:

BANK ACCOUNT

It’s often a legal requirement to have a local bank account to pay employees when creating a new local entity. Banks typically require a director to physically visit a branch to open the account and deposit a large sum of money to meet local capital requirements. With and EOR a local bank account is not needed so there are no capital requirements and no issues with currency conversion and foreign exchange rates.

TAX LIABILITY

Creating a local entity leads to tax liabilities such as:

  • Income tax
  • Business tax
  • Profit tax
  • VAT

With an EOR, you avoid the burden of dealing with employee and corporate tax liabilities.

COMPLIANCE

Each country has a host of laws, which can change abruptly, and as these regulations are mandatory you will need to remain ahead of the changes. Whether it’s data protection or tax and employment laws, your business will need to comply with the latest requirements or face criminal penalties

When you use an EOR, you are not responsible for remaining informed about the ever-changing regulations. The EOR keeps you informed and ensures that you are legally compliant locally.

Do you want to expand your company? Are you planning to hire more employees? Contact us and learn more about how we work so you can reduce costs, save time and labour effort. Contact us 

Diego Mourelos

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