Engaging with a professional employer organization (PEO) when entering the Bolivian market could be the wisest decision if you have a smaller-scale or temporary operation, or are just looking to get your business moving in the shortest time possible.
As one of the fastest-growing economies in Latin America, Bolivia offers an unsaturated market with enormous potential for foreign companies looking to invest in sectors such as hydrocarbons, mining, natural resources exploitation, transport, and communication.
Having shown consistent growth in both gross domestic product (GDP) and gross national income (GNI) over recent years and with economic growth expected to bounce back in 2021 to levels similar to before the COIV-19 pandemic, the prospects for investment in Bolivia appear promising.
For anyone keen on entering the market without the need to incorporate a company or appoint a full legal representative in Bolivia, hiring local staff through a PEO could be the ideal solution.
Why hire staff through a PEO in Bolivia?
Contracting the services of a PEO in Bolivia enables you to recruit, hire, or fire local staff without needing to formally establish a company in the country because the PEO firm will do it all on your behalf.
The PEO will have an established recruitment process based on the local market and can help you to manage time-consuming administrative activities tasks such as payroll management.
A PEO in Bolivia will also act as the registered employer before local authorities. However, it is important to note that the PEO client will still maintain the day-to-day relationship with employees, providing them with the relevant instructions for their daily work activities.
What are the main advantages of a PEO?
Some of the main advantages of hiring staff through a PEO in Bolivia include:
No need to set up a company or branch in Bolivia: If your company has a smaller-scale operation or will develop its activities for a short period of time, it will likely not be necessary to establish a company in the country. In this sense, a PEO will be in charge of recruiting, hiring, firing, and paying all taxes and benefits to local employees. This will leave you time to focus on other aspects of your business.
A PEO will request working permissions for foreign employees: A PEO in Bolivia will oversee any working visas or residency permits for foreign workers. Note that in Bolivia foreign workers can only represent 15 percent of the total payroll of a company.
A PEO will manage all payments for employees: A PEO in Bolivia will be responsible for payroll presentation, health insurance, pension fund, and tax payments related to employees.
A PEO will represent your company in Bolivia: Any claim related to the employees will be directed to the PEO in Bolivia that fully represents your business. A PEO has the necessary powers to resolve legal issues while offering a guarantee to the client that legal norms and labor law will be fully adhered to.
A PEO can provide legal counsel on labor law: A PEO is equipped to provide professional advice on matters related to employee hiring, constructive dismissal claims, and job compliance. This will avoid legal problems that can put your diminish the profitability of your business operations in the country.
Hire local staff in Bolivia with the help of Biz Latin Hub
At Biz Latin Hub, our team of multilingual recruitment and legal specialists has the expertise required to support employers hiring staff in Bolivia, and guarantee full compliance with labor regulations in the country. With our full suite of PEO services in Bolivia, as well as other countries across Latin America and the Caribbean, we are your single point of contact to solve all of your hiring and payroll needs.
Reach out to us now for more information on how we can help you throughout the recruitment and hiring process in Bolivia.
Learn more about our team and expert authors and watch the following video to know more about how to expand into Latin America through a PEO solution.