"Would we need to set up a local legal entity to hire locally if we used an international professional employer organization (PEO)?"
This question was asked at a recent webinar, now available on-demand:
"Winning Globally – Determining When to Take Your Company International"
Please add your thoughts about it below. Thanks!
You don't need to setup a local entity for hiring - the International PEO (also called a Global Employer Organization or GEO) handles the local employment. The GEO becomes the Employer of Record and handles all aspects of employment and payroll compliance.
You may still need or want to setup a local entity for other reasons. For example because of corporate
There is no need to set up your local legal entities to hire global workforce locally.
An international professional employer organization (PEO) solution would officially employ your workers and would act as a legal employer of the employee on the client's behalf. You need to check if a provider covers the countires you are targeting.
If your goal is to compliantly onboard dispersed personnel in multiple countries, a global PEO company can help you meaning you don't need to register own companies in all of your target countries.
The key idea of this service is to not overlay the cost of incorporation and entity maintenance to the client as oherwise this would contradict the nature of a PEO concept.
More details: https://www.expressglobalemployment.com/expand-without-incorporation-and-risk/
