If you are looking to launch a short-term or limited-scale commercial project in the Brazilian market, or simply wish to get to know local business conditions before making a deeper investment, you may find that hiring staff through a professional employer organization (PEO) in Brazil is your best option.
Because when you hire staff through a PEO in Brazil, they are officially employed by the PEO firm, while you maintain full control over their tasks and schedules, meaning you can secure a local workforce without having to go through company formation.
This can be a good precursor to starting a business in Brazil, as it can be implemented much quicker, while it will provide insight into doing business in the country that may inform your subsequent commercial strategy.
A PEO in Brazil can also be known as an employer of record (EOR), and may be referred to as a PEO payroll company, owing to payroll outsourcing being one of the most popular services such companies provide.
Known as “The South American Giant”, Brazil is the largest economy in Latin America by Gross Domestic Product (GDP), and the eighth-largest in the world, registering a GDP of $1.84 trillion in 2019 (all figures in USD). That same year, Brazil registered a gross national income (GNI) – a key marker of general prosperity – of $ 9,130 per capita, which places Brazil as an upper-middle-income country, according to standards established by the World Bank.
Brazil is a member of the Southern Common Market (Mercosur), a thirty year old regional trade bloc that also includes Argentina, Paraguay, and Uruguay, and to which Bolivia is currently awaiting accession.
Brazil is a popular destination for foreign investors. Indeed, its foreign direct investment (FDI) inflows reached $73.5 billion in 2019, positioning Brazil as the world’s fourth largest recipient of FDI. This is due, among other things, to a growing middle class, a services sector that is considered one of the most developed in Latin America and an abundance of natural resources.
Brazil’s top export commodities include ore and slag, soybeans, timber, and coffee. The country’s main trading partners include Argentina, Chile, China, the Netherlands and the United States.
If you are interested in doing business in Latin America’s largest market read on to understand how working with a PEO in Brazil could be your ideal choice. Or go ahead and reach out to us now to discuss your business options.
Responsibilities of a PEO in Brazil
When you contract staff via a PEO in Brazil, you can hand over a range of staffing matters to them, including recruitment and employee onboarding, as well as ongoing management of their salaries, benefits, and leave.
That not only means you can do business in the country without going through company formation, but also that you can tap into the PEO firm’s established recruitment network and extensive knowledge of the local employment market. That includes knowledge of the best educational institutions and courses, which will inform them during the candidate vetting process.
Moreover, as part of the service agreement, your professional employer organization in Brazil should guarantee compliance with all local norms, as well as offer you ongoing advice on regulatory changes as they arise, meaning you can do business safely in the knowledge that you will not encounter any unexpected legal issues or penalties.
Main advantages of working with a PEO in Brazil
Some of the main advantages of hiring staff through a PEO in Brazil include:
Rapid market entry: When you hire via a PEO in Brazil, you are able to enter the market in only the time it takes the PEO firm to find your ideal staff. That could be a matter of weeks or even days, depending on the profile you are looking for.
Expert local knowledge: Your PEO in Brazil will have expert local knowledge that could be invaluable to your business, not only in terms of understanding the local job market, but also in terms of opportunities available and changes in local regulations.
Develop market familiarity: When you work with a professional employer organization in Brazil, you have the chance to experience doing business in the market that could inform your future plans, including whether you wish to go through full entity formation.
Reduced administrative burden: By handing over recruiting and payroll management to the PEO firm, you eliminate a large administrative burden from your in-house team, or the need to hire local staff for those functions, allowing you to keep your operations streamlined.
Ongoing commercial support: By choosing a company that offers professional employer organization services as part of a broader portfolio of back-office support, should you choose to go through company formation or suchlike, you will be able to rely on that same partner to support you.
Biz Latin Hub can be your professional employer organization in Brazil
At Biz Latin Hub, our multilingual hiring & PEO experts are equipped to help you find the staff you need to get to work in the Brazilian market. With our full suite of back-office support options, including legal, accounting, and company formation services, we can be your single point of contact for launching operations and doing business in Brazil, or any of the other 17 jurisdictions around Latin America and the Caribbean where we operate.
Learn more about our team and expert authors.
Contact us now to discuss your expansion options.