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.