Uploaded on Apr 5, 2023
Companies often face hurdles in finalizing their international business expansion strategies because hiring locally becomes a challenge. Global PEO EOR services are meant to take care of this snafu for anyone who wants to hire remote resources. To see how global PEO EOR services are the best way to expand internationally, let us look at the 3 prominent ways a company can establish an international presence.
Global PEO EOR Services for Business Growth (1)
Global PEO EOR Services for Business
Growth
Companies often face hurdles in finalizing their international business
expansion strategies because hiring locally becomes a challenge. Global
PEO EOR services are meant to take care of this snafu for anyone who
wants to hire remote resources. To see how global PEO EOR services are
the best way to expand internationally, let us look at the 3 prominent
ways a company can establish an international presence.
● Incorporate subsidiaries in the target location:
Once you incorporate a subsidiary in India, you are legally allowed to hire
resources directly from the Indian talent pool. The caveats of this process
are explained in our blog on subsidiary formation so we won’t get into
details here. Instead, let’s understand if this is a suitable option.
This method of international business growth is suitable only if you plan to
create a substantial presence in the Indian marketplace. But if you’re only
looking to tap into the Indian resource talent pool, this is not a feasible
option
It creates a separate legal entity in India. You are liable to pay taxes on all
operations and transactions you carry out. You will need a dedicated
accounting division to handle accounting, taxation, and employee
compliance.
If all of this seems a bit too extravagant just for hiring remotely, look for
other options.
● Register as an employer in the target location:
This method is the least expensive of all but is also largely dependent on
prevalent laws in the target location. For example, this option is not
available in India yet but may be available in other countries.
However, if you choose to go this route upon confirming it is available, you
will not have a local representative for the target country looking after
hiring. It will be your head office, situated abroad, that will look after
scouting for resources and choosing the best ones. They will be the
ones formalizing employment contracts and looking after employee
compliance. If they do not understand the local bylaws, they will land up
in trouble.
● Employ global PEO EOR services to make local hiring partners:
Of the 3 methods, global PEO EOR services offer the fastest turnaround
times. A global EOR / PEO service provider in India will act as the legal
employer of your resources in India. The agency assumes employer
responsibilities like employee compliance, employment tax, and
employee benefits.
If you choose to go this route, you will find employees become
operational in almost no time. You also create a local partnership in
India, which has huge benefits in terms of understanding the underlying
market conditions.
EOR / PEO services in India:
When seeking partnerships with the PEO industry, you must look at how
well the Professional Employer Organization understands the Indian
market. Another deciding factor when choosing a PEO agency in India, is
how well the PEO service provider understands your business objectives.
Remunance offers an amalgamation of both the above pivotal points. We
understand the Indian pulse and are familiar with the fluctuations and
trends in the Indian markets. We also have very big listening ears to
understand your business goals in India. Feel free to browse through our
PEO services and see if we are compatible with each other.
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