When you expand your business especially internationally, there is that possibility of establishing a new corporate entity, and the process of hiring, staffing and many more.
Somehow, when you do decide to expand in counties in Latin America, you can expand your business in a more convenient way without the need for establishing a new corporate entity. This is due to the availability now of Employer of Record or EOR, that is commonly utilized by those companies wanting to expand internationally to take care of the legal responsibilities of employing your employees and all formal employment tasks in the country.
There are countries that have their own employment, payroll and work permit requirements for non-resident companies and these can be a burden when meeting such requirements, thus, Employer of Record come in handy as it helps you overcome the regulatory and cost hurdles if you decide to employ workers in the country of choice.
You are the original employer, but the Employer of Record is considered to be the registered employer of the employee but it is only limited on dealing with establishing the legal and regulatory requirements of immigration, employment, and payroll, but does not get involved in the daily operation of the work.
EOR functions just like your HR or administrative department and it have different types that you can select like Administrative Services Organization (ASO), and the Business Process Outsourcing (BPO), International Professional Employer Organization PEO, and Foreign Subsidiary as a Service (FSaaS). All of these types of Employer of Record are good, but you have to choose which type there is can be most useful and beneficial to the kind of business that you have and are operating on as well as your business needs and preferences.
So then, you can generally see that with the use of Employer of Record, your company or business will have the best benefit in reference to getting the convenience of access to immigration compliance, no need for you to go for local incorporation, and it will be easier of running payroll in the host country, which all are positive benefits that will work pretty well for your goals.
You know that expanding especially to a foreign country is a daunting task and sometimes risky, and with something that can make the transition more efficient and cost-effective with all the important and necessary task handled accordingly by an Employer of Record, therefore, learn as much as you can about this option and determine what is the best one that is applicable for you and that will help your business to go forward in your vision in expanding further.