Extending your business to the international market can seem like the perfect scenario for many companies in terms of growth. However, there is the problem of establishing the legal entity, encountering foreign legislation, and handling expensive paperwork. The good news, though, is that you don’t need to establish a legal entity while moving to new markets including Singapore. When you use an EOR solution, you are able to acquire talent in a new country fast and without undue concerns about legal complications.
Let’s explore further in this blog
What is an Employer of Record (EOR)?
An Employer of Record (EOR) is an organization that assumes the legal responsibilities of employing and managing workers on behalf of other companies. In layman’s terms, an EOR can handle payroll, HR, Benefits, and compliance to employees in exchange for a monthly fee, while you oversee the actual management of the employee in terms of roles and responsibilities. An EOR in useful countries like Singapore where registering a local entity can be a tedious task and expensive as well.
This lets you employ workers in many of the world’s key locations, coordinate remote workers, and grow rapidly without needing an office or having to navigate complex employment legislation of the country in question.
Benefits of Using an EOR to Expand into Singapore
1. Simplified Market Entry
Moving to a new market, particularly one as aggressive as Singapore can be quite challenging. When you work with an Employer of Record in Singapore, you can begin employing people in Singapore in the shortest time possible. The EOR takes care of all employment law and compliance issues, thereby simplifying the whole market entry process significantly. It helps you escape the early hitches of establishing an entity and allows you to expand your business from scratch.
2. Focus on Core Business Operations
An EOR eliminates the need to invest a lot of time in intricate HR and payroll issues. Several of those responsibilities entail handling employees’ welfare, preparation of tax statements, compliance with local laws regarding employment, and issuing of salaries among others. With an EOR, you can focus on what really matters—your business’s growth, customer acquisition, and market expansion—while leaving the operational headaches to a trusted partner.
3. Cost-Efficiency
Establishing a local entity in a new country often involves significant upfront costs, including legal fees, office space, and a dedicated HR team. By using an EOR, you avoid these initial costs and get access to a service that starts at just US $300 per employee/month. This is a more affordable way to test a market and scale as needed without committing to a full-fledged operation.
4. Mitigate Compliance Risks
Each country has its own set of employment laws, and navigating them can be tricky. In Singapore, for example, labor laws around contracts, benefits, and working hours can differ from your home country. An Employer of Record ensures that all contracts and agreements are in line with local regulations. For instance, you can offer permanent contracts or fixed-term agreements to employees, with terms that include intellectual property and confidentiality clauses—customized to protect both you and your employees.
With an EOR, you’re assured that your business remains fully compliant with all local labor laws, minimizing the risk of penalties or legal issues that could arise from non-compliance.
How an EOR Handles Key Administrative Tasks?
1. Payroll and Taxes
Managing payroll in a foreign country can be overwhelming, especially when dealing with different tax systems. The EOR takes care of payroll processing and tax filings, ensuring that all deductions are made according to Singapore’s regulations. From understanding the progressive wage models to ensuring compliance with the Central Provident Fund (CPF), they handle it all, ensuring your employees are paid accurately and on time.
2. Employee Benefits and Insurance
While basic health insurance is provided by Singapore’s national system, employers can choose to offer supplemental insurance. With an EOR, you don’t need to worry about figuring out how to provide the best benefits for your employees. The EOR will manage everything from health insurance to retirement contributions, ensuring that your employees receive all the benefits they are entitled to.
3. Legal Contracts and Agreements
Contracts in Singapore must be clear and comprehensive, often including clauses on intellectual property and confidentiality. Whether you’re hiring employees on permanent contracts or fixed-term agreements, an EOR ensures that all contracts are legally sound and aligned with Singaporean labor laws. This reduces the chance of any legal disputes down the line.
Scalability and Flexibility with EOR Solutions
Perhaps the biggest advantage of using an Employer of Record Singapore is the flexibility it offers. If your business sees rapid growth in Singapore, scaling your team becomes a seamless process. The EOR can handle the hiring, onboarding, and HR functions for you, allowing you to focus on expanding your operations and reaching your business goals.
In Conclusion: Expand with Ease
Expanding your business internationally doesn’t have to be complicated. By partnering with an EOR, especially in countries like Singapore, you can avoid the headaches of setting up a local entity while still tapping into global talent.
BGC Group is a leading EOR provider in Singapore taking care of payroll, compliance, benefits, and taxes with more than 19 years of experience in the business. By partnering with BGC Group, you can focus on what matters most—growing your business and meeting your strategic objectives. So why wait? Start expanding your business today with an EOR solution and experience a seamless international entry.
