International PEO

What is an International Professional Employer Organization?

International PEO (Professional Employer Organization) is a flexible employment solution that enables businesses to employ workers in a foreign country, bypassing the need to first establish a legal entity before operating in that market.

An International PEO provides access to in-country talent pools, sourcing and hiring local talent on your behalf. The PEO executes essential HR responsibilities, handles risk mitigation, and covers all compliance considerations while you maintain control of employee liabilities and daily operations.

Ensure Your Employees are Classified Correctly

There are many advantages to relying on an International PEO during a global expansion. If a contractor/freelancer is proven by the local government to meet its criteria as a full-time employee, the employer may face significant fines and penalties.

An International PEO mitigates these global hiring risks by managing the employment relationship, ensuring that your employees are correctly classified, and are operating in compliance with all local labor laws and regulations.

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Provide Cost and Time-Saving Solutions

Traditional foreign entity establishment is expensive and cumbersome. The average cost of setup hovers around $20,000 USD, with annual maintenance costs reaching several times that. An International Professional Employer Organization requires only a service fee and financing for employees’ payroll, more than halving the cost of operating in a new market. A PEO significantly reduces the time needed to complete necessary steps, including employment contract review and approval.

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Utilize an Agile Approach to Global Expansion

Using an International PEO allows organizations to begin operating in new markets with no long-term contracts, providing the opportunity to test whether or not remaining in that market makes the most sense for their growth objectives. Companies can gain a better understanding of local competition, and how their product or service fits within the local culture. Taking into consideration cultural nuances is an integral part of a successful global expansion strategy.

Our cloud-based relocation technology is designed to help you streamline your company’s relocation management.

Enter or Exit Markets Quickly—Or Establish a Long-Term Presence

Just as important as developing a thorough market entry strategy is having a compliant exit strategy. Each market has its own exit requirements that are dependent on the entry method—and tearing down an entity in virtually any country is a long, expensive process. By using an International PEO, organizations can easily leave their market without the crippling costs and headaches that come with tearing down an entity.

Take Your First Step Towards Global Expansion with International PEO

International PEO provides a number of benefits not available through traditional entity setup, and enables businesses to begin operating in their new target market in a number of days—not months.

If you would like to learn more and explore the details of International PEO, download your free copy of the Definitive Guide to International PEO, or reach out to GMS today to learn how International PEO can help grow your global presence.


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