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.
But then, there are countries now especially those in the Latin America side that allows a company to expand from an international country and does not need to establish a new corporate entity. Employer of Record, or EOR, makes this possible, being it an organization that contracts with business expanding internationally and they take care of legal responsibilities of employing your employees and all formal employment tasks in the country you choose to have the business.
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.
So in essence, when you expand internationally, you are actually the original employer and the Employer of Record functions as your intermediary and will work as the registered employer of the employee being hired locally but function is only limited to dealing with establishing the legal and regulatory requirements and have no say to the regular daily work operation.
EOR functions as though it is your HR or administrative function and they can range from International Professional Employer Organization PEO, Foreign Subsidiary as a Service (FSaaS), Administrative Services Organization (ASO), and the Business Process Outsourcing (BPO). These types of Employer of Record caters to your different needs depending on the type of business that you have and how expanding internationally works and functions.
Therefore, using Employer of Record when expanding internationally will give you the benefits as easy access to immigration compliance, ease of running payroll in the host country, and there will be no need for you to go for local incorporation.
This is absolutely a very good option that will be beneficial for you and can be efficient as well as cost-effective and secure way of bringing your own business to international countries and if you want to dig in deeply on how this can be of importance to you, you can check on websites that offer this kind of service to which country that you prefer, especially in the Latin American countries and know what you need to do.