In the rapidly evolving global business landscape, companies seeking to expand into new markets face numerous challenges. One solution that has gained significant traction is the Employer of Record (EOR) service. This service conveniently allows companies to hire employees in foreign countries without needing to establish a local legal entity. Let’s explore why EOR is becoming increasingly relevant, particularly in markets like the Maldives.

Understanding Employer of Record (EOR)

An Employer of Record (EOR) is a third-party organisation that manages the employment responsibilities for a company in a foreign country. This includes handling payroll, taxes, benefits, and compliance with local labour laws. Essentially, the EOR acts as the legal employer while the client company remains in control of day-to-day operations and employee management.

Global Trends in EOR

Globally, EOR services are witnessing robust growth. As companies look to enter new markets without the complexities of setting up local operations, EOR provides a streamlined solution. This trend is driven by the increasing globalisation of business, the need for flexible workforce solutions, and the growing complexity of international labour laws.

Value Proposition of EOR

EOR services offer several advantages:

1. Simplified Management for Small Teams: For companies with smaller teams—typically ranging from 1 to 20 employees—EOR provides an efficient way to manage staff without the overhead of establishing a local office. This is particularly beneficial for startups and small businesses expanding internationally.

2. Ideal for Foreign Companies: Foreign companies can leverage EOR to navigate local regulations and compliance requirements more easily than if they were to establish a local entity. 

3. Ease of Entry into Complex Markets: EOR is especially advantageous in countries with complex labour laws or challenging registration processes, such as the Maldives. For foreign businesses looking to operate in these regions, EOR simplifies entry and compliance.

Optimal Use Cases for EOR

EOR is particularly effective in the following scenarios:

1. Complex Regulatory Environments: In countries with stringent labour laws and regulatory requirements, such as Sri Lanka, EOR can help companies comply with local laws without needing to navigate the complexities on their own.

2. Difficult Registration Processes: In markets like the Maldives, where setting up a local company can be challenging, EOR provides a viable alternative. It allows companies to employ local staff without the need for a local legal entity.

3. Advantage of Local Partnerships: Having a local partner can be beneficial, especially in new or unfamiliar markets. EOR providers offer not just employment solutions but also valuable local insights and support, which can be crucial for navigating the business landscape.

EOR to take your business to the next level

For companies eyeing expansion into the Maldives, EOR offers a strategic advantage by simplifying the employment process and ensuring compliance with local regulations. As global trends continue to favour flexible and efficient workforce solutions, EOR stands out as a practical choice for managing international operations seamlessly.

For more insights on how EOR can benefit your business in the Maldives, feel free to connect, inquire and explore the possibilities of taking your business to the next level.

The archipelagic Republic of the Maldives is the smallest Asian country, forming an archipelago of
almost 1,000 islands, but the small island country is located on the busy international sea routes and is a
major tourist destination, yet remains dependent on imported goods.
However, expanding a business in Maldives can be a tricky and drawn-out process given the complicated
bureaucratic procedures, cultural differences, and unique regulations.

At ExroAsia, we offer a comprehensive range of outsourcing services to accelerate an organization’s
successful expansion into Maldives. We provide professional employer organization (PEO), payroll, and
employ of record (EOR) services that cover all the administrative tasks and legal compliance work, so
that you can focus on your rapid and successful expansion.

There are a bunch of different ways we can partner on recruitment. We can acquire and onboard new
recruits on your behalf, freeing you up to focus on other business priorities. Additionally, you can
leverage our Maldivian entity to act as your employer of record, saving you the hassle of setting up a
local entity.

If you are expanding your business globally, using an EOR in Maldives can save you a considerable
amount of time and resources. You will not need to set up an entity in Maldives, which can take months,
and you will not need to pay your employees in Asia during that time, you can use EOR services of
ExroAsia and outsource to Asia. This can help you avoid significant delays in your global expansion plans.
We prepare and certify all local employment contracts, making the induction process for you and your
employees more streamlined—all you need to do is provide the necessary information and review and
confirm the employment agreement.

We source talent from Asia, the most skilled and competent workforce required to empower your
business. Talent in Asia is diverse, multi-lingual, multi-cultural and skilled with global exposure. ExroAsia
has a team of experts in the region who work with multiple partners to cater to your requirement within
a short span of time.

ExroAsia can help you get started in Maldives in a matter of hours which can be financially beneficial if
you don’t have a legal entity in the country yet. Understanding that employees are your most biggest
asset, we provide services with utmost care and decades of collective experience in supporting our
partners expand across the globe.

We manage the payroll, benefits, and expenses in the Maldives for organizations of all sizes, while
offering HR, recruitment, and accounting-related services. We are the one stop shop for all your
outsourced HR needs. PEO services in Maldives and Employer of Record will be cost effective and you
can focus on strategy while we support you with everything you need for your expansion in Maldives.
Our experts can setup operations for you in a matter of days and save you over 80% of expansion costs
even without having an entity in Maldives. We source talent from the most skilled and competent
workforce required to grow your business. Our professional staff in the region is diverse, multi-lingual,
and multi-cultural, with strong professional backgrounds in leading companies from around the world.

We have a team of regional experts working around the clock to link talented professionals to your
organization.
Our dedicated workforce and partnerships guarantee that you will receive customized, consistent and
reliable, enterprise solutions to drive your business needs. From recruitment, hiring and training, to
staffing, payroll, and benefits, to organizational development and employee engagement, we have you
covered! Many businesses look for the right partner to expand their operations, a solution which can
mitigate the risks and lets the company expand with confidence. ExroAsia has many years of experience
with a team of experts on board who can support your growth journey. Drop a message if you would like
to have a chat.

Companies look at different ways of structuring their business when faced with international expansion. Most companies either send their employees to manage operations in the new country, or set up an independent agency through which to experience growth (e.g. affiliates, agencies, etc.). For specialized and high-end services, some companies look at acquiring a local company or establishing a joint venture to share profits and control.

With economic recession, companies are closing down their overseas branches and offices. They are doing this in order to save money and cut costs. However, instead of closing, these companies are choosing to transfer their foreign branch to a global PEO. Transferring to a PEO will be a lot cheaper, faster and easier than maintaining multiple subsidiary. Global PEOs like ExroAsia offers their low cost services to companies so that they can transfer their foreign company to a PEO.

We recruit, hire, and onboard your team in your chosen market of expansion, and act as your Employer of Record to manage all aspects of their employment, including: – recruiting, hiring, and onboarding – creating and managing their employment contract(s) – managing their payroll, tax, and benefits – answering all types of work-related questions – ensuring regulatory compliance, including through international labor law, immigration and visa requirements.

A global PEO such as ExroAsia can manage your entire business from recruitment to taxation. By outsourcing your HRM, you can cut down on your operational costs and focus more on growing your business. Further, by engaging a PEO, you do not have to worry about complying with complex labor laws or tax regulations.

Our global PEO & EOR solution has helped many entities from different industries who expanded their operations in Asia.

Co-employment is an employment relationship between two organizations. Often, a client business and a Professional Employer Organization (PEO) share employer responsibilities between them. For many business owners, the beginning of the year is a great time to review the overall financial health of the business. One area that they are often left to ponder is their payroll. Many owners think about outsourcing the payroll, but do not know what exactly outsourcing entails.

In co-employment there are defined tasks that the company manages by themselves. Day-to-day business operations and daily HR tasks which also include employee performance activities are managed by the company. Job targets and KPI’s are also monitored by the company itself in most scenarios. Management of the employee however is taken over by the PEO. Recruitment, placement of employees at different locations on requests, managing payroll, benefits and deducting tax, complying with local tax and regulatory laws and even performing employee surveys and exit interviews become a part of the PEO’s role.

There are many benefits of co-employment for a company that is expanding globally. One of the key benefits is that PEO takes responsibility for the legal and administrative side of employees allowing the company to focus on its core business.

The HR can be agile and managed seamlessly with a PEO onboard in terms of quality, international standards and guidelines. PEO with their expertise in the region can guide a company plus provide additional benefits to the employees such as pension, insurance, medical benefits etc

Payroll planning and management can be done efficiently while PEO would handle paychecks and taxes on behalf of the company, allowing them to focus on strategic expansion. Not just compensation, PEO manages benefits including leave, retirement and entitlements.

Co-employment with a PEO also entails that they support the company have a robust HR strategy to support the expansion strategically. PEO allows the company to take decisions while they focus on growing the human capital and supporting with HR policies and statutes.  

There’s lots of paperwork involved in the complex HR responsibilities of a company. Working with a PEO can simplify the HR responsibilities, by taking over the administrative and labor-related tasks of a company and becoming its co-employer.