If you are interested in doing business in Bolivia, one good option is to get local staff through an employer of record (EOR). An EOR in Bolivia will hire staff on your behalf, meaning you can avoid establishing an entity in the South American country.
That is an attractive option to anyone in need of a local executive to represent them in the country or region, or for those who are seeking a team for a particular project and would rather avoid the more time-consuming process of company formation in Bolivia and subsequent liquidation.
When you hire through an EOR in Bolivia, the staff report directly to you, while the provider oversees their onboarding, payroll, and eventual offboarding. EOR services are often referred to as professional employer organization (PEO) services, and as such are commonly advertised as PEO payroll services.
In the event you don’t have the staff you want to hire already lined up, an EOR in Bolivia will generally be able to assist with the recruitment process, providing you access to an established recruitment network and expert knowledge of the local job market.
Your EOR in Bolivia will also offer the guarantee of compliance with all local employment-related regulations, eliminating a potential legal headache from the process of doing business in the country.
Why choose Bolivia for overseas expansion?
Bolivia may not be the first name that springs to mind when considering investing in Latin America, but the country boasts a wide range of untapped opportunities and has experienced significant growth this century.
Despite the turmoil of the COVID-19 pandemic seen in 2020, Bolivia’s economy bounced back in 2021, posting GDP growth of 6.1%. According to President Luis Arce – a former economy minister – that growth will be matched in 2022.
While Bolivia’s significant gas and oil reserves have been a key draw for investors, the country also sits on significant deposits of lithium, ores, and precious metals.
Bolivia is also well-known for its agriculture, with soy (which is widely used for animal fodder) and cereals among key export commodities. Over recent years, the farming sector has generated at least 10% of GDP — a significant proportion compared to many other countries in the region.
For English-speaking investors, it is worth noting that the country registering the second-highest proficiency in Latin America in the 2021 edition of the English Proficiency Index (EPI) — so it is feasible to find English-speaking employees via an EOR in Bolivia.
While Bolivia has no coastline, it has good trade links to its neighbors, being a founding member of the Andean Community of Nations, a 50-year-old regional integration initiative that also includes Colombia, Ecuador and Peru, and which has been implementing a series of measures to deepen integration in recent years.
Bolivia is also currently awaiting formal acceptance to the Southern Common Market (Mercosur), which will see it forge closer trading ties with current membersArgentina, Brazil, Paraguay, and Uruguay.
Advantages of hiring via an EOR in Bolivia?
Hiring via an EOR in Bolivia offers the following advantages:
Limited commitment: When you hire staff through an EOR in Bolvia, you limit your commitment to the market, allowing you the opportunity to get to know it better ahead of making a deeper investment, as well as to swiftly exit the market whenever needed.
Time-saving: Your market entry will be completed in little more than the time it takes to find the right staff, meaning that you will be able to get to work much sooner than if you were to set up a local entity.
Established network: Your chosen EOR in Bolivia will be well-connected in the local market, potentially offering you valuable contacts during your market entry, or later down the line while you are doing business.
Market familiarity: By hiring via an EOR in Bolivia, you can get to know the market better, ahead of a possible deeper commitment via the likes of company formation.
Reduced costs: While you will have to pay fees to the EOR, they are often significantly lower than the costs involved in company formation and subsequent liquidation.
Legal knowledge: Your EOR in Bolivia will have staff who are experts in all areas of law relevant to hiring in the country, be that commercial, employment, or labor law.
Biz Latin Hub can be your EOR in Bolivia
At Biz Latin Hub, we provide integrated market entry and back office services throughout Latin America and the Caribbean, with offices in 17 key cities around the region, invcluding La Paz, one of Bolivia’s capitals.
Contact us today to find out more about how we can assist you.