The process of joining the foreign markets is full of complex responsibilities. Handling recruitment, payroll, and compliance without in-country experience can stifle growth or jeopardise legal exposure. That is where PEO service providers assist businesses to enter new countries effectively, without establishing an in-country legal entity. As companies look beyond domestic frontiers for talent, PEOs offer a forward-thinking solution to age-old expansion issues.
The Core Function of a PEO
PEO is an abbreviation of Professional Employer Organisation. It is run on a co-employment model, in which companies can employ and sponsor expatriate staff, but with the PEO handling administrative and legal work. They include payroll, contracts, taxation, and compliance with labour laws at the local level. This two-tier setup is simple to expand into new markets with the minimal waiting period needed for legal entity registration.
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