Hiring Employees – PEO versus Entity Setup in Peru

Peru has been one of the rising stars of the Latin America economy in the past decade, with the region expecting further economic growth. Many foreign companies have already started operations in the region and are enjoying being part of the country’s growth and success.

Peru is the fourth largest country in South America with a population of approximately 32 million people, following Brazil, Colombia, and Argentina. From the total population, there are 20 million people who are allowed to work legally in the country. Which represents more than 60% of the population.

Having a large working population with a good pool of candidates is appealing to new companies trying to expand into the Peruvian market. However, there are general employment rules in Peru that have to be considered before hiring employees.

When deciding to hire employees in Peru, there are two options: through a local legal entity, or through a Professional Employment Organization (PEO). Choosing to hire employees via an International PEO solution is frequently the preferred method for companies that are starting in the region and already have identified local or foreign workers for their operations. This allows companies to set aside the burden of local employment rules and focus on their business.

Biz Latin Hub can act as your local employer of record and assist you to successfully operate in this region. We invite you to learn more about our accounting and legal experts, our Hiring and International PEO solutions and hiring support that we can provide in Peru by reviewing our presentation below. This presentation was designed by our local experts and contains all the information you need to know when choosing to hire employees in Peru.

If you have any more questions about how to hire employees in this vibrant country, reach out to our friendly team in the Peru office today.

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