If you are interested in doing business in Puerto Rico, but are only planning a short-term or limited-scale operation, or would simply like to get to know the market better first, you may find that hiring staff via a professional employer organization (PEO) is your best option. Because when you take on employees through a PEO in Puerto Rico, you control their schedules and workloads, while handing the administrative burden over to the PEO firm.
For non-US investors, that is particularly appealing because it means you can get to work in the local market without having to go through company formation in Puerto Rico. A PEO can also be known as an employer of record (EOR).
Situated in the Caribbean, between the Dominican Republic and US Virgin Islands, the US territory of Puerto Rico had a population of 3.19 million in 2019. That year, the island registered a gross domestic product (GDP) of $104.99 billion and a gross national income (GNI) of $21,970 — a prosperity marker higher than any mainland Latin American nation.
Puerto Rico has a highly industrialized economy, with industry contributing more than 50% of GDP in 2018, while the services sector accounted for slightly less. The agriculture sector generated less than 1% of GDP that year.

That means the country has a ready supply of manufacturing workers, while it is also home to a growing startup sector, providing skilled workers for the tech industry.
Puerto Rico has seen growing interest among international investors over recent years, with foreign direct investment (FDI) rising over recent years, especially from the likes of Canada, Germany, Mexico, and Spain. Sectors that particularly attract investment include telecommunications, IT and tech services, and manufacturing.
If you are interested in doing business in the Puerto Rican market, read on to understand the benefits of using a PEO in Puerto Rico, as well as some of the legal requirements your PEO firm will assume responsibility for. Or go ahead and contact us now to discuss your business needs.
Benefits of using a PEO in Puerto Rico
Hiring via a PEO in Puerto Rico comes with a range of benefits, including:
Cost effectiveness: The fees you will have to pay the PEO firm will likely be considerably less than what you would have to invest in forming a company and hiring staff to manage payrolls and oversee local compliance obligations.
Time saving: When you hire through a PEO in Puerto Rico, you won’t need to establish a legal entity, allowing you to get staff in just the time it takes to find suitable candidates for the roles you need. Depending on their profiles, that could be a matter of days after you sign the services agreement with your PEO provider.
Market orientation: Enter an unfamiliar market for the first time can be daunting, given differences in the regulatory regime and culture of doing business. Hiring through a PEO in Puerto Rico will allow you to tap into their local expertise and develop a clearer picture of the market, prior to any possible deeper commitment.

Limited commitment: That leads to the next advantage, namely that when you hire through a PEO firm, your commitment to the market remains limited, allowing you to exit in only the time it takes to offboard any outsourced employees, rather than having to go through company liquidation.
Local network: Beyond the established recruitment network that it will have in place to help find your ideal staff, your PEO in Puerto Rico will also have strong connections to the local business community, which could be beneficial to your business in other ways.
Guaranteed compliance: The service agreement you sign with a PEO in Puerto Rico will include the guarantee of compliance with all local regulations and norms, meaning that you can rest assured your business will remain in good standing with local authorities.
Legal requirements a professional employer organization will assume
As part of the guaranteed compliance that your PEO in Puerto Rico will provide, some of the legal requirements it will take care of include:
- Drawing up and registering signed employee contracts
- Managing all aspects of payroll, including paying salaries in a timely manner
- Adhering to standard daily and weekly working hours as agreed
- Honoring of all national holidays celebrated in Puerto Rico
- Honoring sick and other personal leave entitlements
- Meeting statutory employee and employer contributions for social security
Biz Latin Hub can be your PEO in Puerto Rico
At Biz Latin Hub, we can provide the high-quality hiring & PEO services you need to find the right staff and get to work in Puerto Rico in the shortest time possible. With our comprehensive portfolio of back-office solutions, including legal, accounting, and company formation services, we can be your single point of contact for entering the market and operating in Puerto Rico, or any of the 17 countries around Latin America and the Caribbean where we have local teams in place.
Contact us now for personalized assistance or a free quote.
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