An organization is only as good as the people it hires, so making sure you find the right personnel when entering the Paraguayan market is critical. For companies with a limited-scale or short-term operation, working with a reliable professional employer organization (PEO) payroll company in Paraguay will give you the confidence you need in your new employees, as well as saving valuable time on HR-related tasks.
A PEO firm in can also be known as an employer of record (EOR) or a payroll outsourcing company in Paraguay.
According to Paraguay’s Minister of Finance Benigno López, in response to the turmoil of the COVID-19 pandemic, the South American country is seeking to attract foreign investment through low tax rates and laws that guarantee tax exemptions to companies that want to settle in the country. In addition, López has stated that the government is working to improve migration processes so that investors can obtain Paraguayan residency in a short time.
While not necessarily the first country in Latin America that people think of as an investment destination, Paraguay has shown consistent growth over recent years and seeks to be extremely investment-friendly. For foreign companies, free trade zones located in Ciudad del Este, such as Zona Franca Internacional and Zona Franca Global del Paraguay, offer extremely attractive tax arrangements.
If you are thinking about doing business in Paraguay, read on to understand how a PEO payroll company can find suitable and qualified personnel to ensure the success of your commercial operations in the country known as “the heart of South America.”
PEO payroll company in Paraguay: what does it mean?
A PEO payroll company in Paraguay is able to recruit, hire, fire, pay social benefits, and manage employee payroll on your behalf, and will act as the official employer in the eyes of the Paraguayan government, meaning that you can hire without having to go through company formation, or establish any other kind of legal entity.
With extensive knowledge of local labor and tax regulations, a PEO payroll company in Paraguay will ensure your business remains in good standing with Paraguayan authorities and will help you with many time-consuming administrative processes, leaving you time to focus on other important aspects of your business.
Note that the payroll company is also responsible for compensating staff in the event of resignation or dismissal, as well as accrued vacations that were not taken, retirements, and any other required payments.
What are the main advantages of hiring staff through a PEO?
A PEO payroll company in Paraguay will also share the responsibility for the safety and health of the employees in the work environment and will carry out the procedures and updates required before Paraguay’s Ministry of Labor. Some of the main advantages of hiring staff through a PEO payroll company in Paraguay include:
Profitability: Hiring local personnel in Paraguay through a PEO payroll company will allow you to save money and avoid additional expenses that might affect or delay your commercial operations in the country.
Risk management: A PEO payroll company in Paraguay will guarantee full compliance with local regulations and protect your organization and its interests in the event of legal problems. Note that all claims related to the employees will be directed to the payroll company.
Time-saving: If your business is just starting out, payroll and employee-related administration can be a huge time suck. If you choose to outsource these tasks, you will have time to handle other crucial aspects of your newly established business.
Employee recruitment: A payroll company is fully equipped to perform efficient recruitment processes to identify and hire the most suitable and qualified personnel to maximize your company’s possibility of success.
Legal advice: A PEO firm will provide legal advice on labor, tax, and civil legislation in case you require it.
Get to know the market: Hiring staff through a PEO payroll company will allow you to build a better impression of the market ahead of any potential larger-scale expansion. Because a PEO payroll company could have staff hired on your behalf in days, as well as making market exit straightforward. Meanwhile, you will have the chance to decide whether your future business plans warrant a deeper involvement in the market through the likes of company formation or branch registration.
Biz Latin Hub can be your PEO payroll company in Paraguay
At Biz Latin Hub, our multilingual recruitment and employment experts have broad experience helping foreign companies get established in Paraguay, as well as elsewhere in Latin America and the Caribbean. With our full portfolio of legal, accounting, and back-office services, we can be your single point of contact to help you to enter the Paraguayan market in the shortest possible time.
Contact us now to discuss your expansion options.
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