EOR service enables business development in countries where there are no subsidiaries!

We have been receiving an increasing number of enquiries from client companies that do not have a local subsidiary in Europe, but wish to hire someone to expand their business.

As a Japanese recruitment agency that covers all of Europe, Centre People has been able to assist companies with recruitment in European countries without any problems, but until now we have not had a solution to support the recruitment needs of companies in countries where they do not have subsidiaries.

However, by introducing a service called EOR (Employer of Record), it is now possible to develop your business even in locations without a subsidiary, and the possibility of our further support for everyone has expanded!

We interviewed Mr Nishigawa, who is running an EOR business, and asked about the kind of service EOR provides.

“EOR is a new system that allows you to hire permanent employees in countries where you do not have a subsidiary of operations.
Generally, when trying to hire employees in a new country, it is necessary to set up a local subsidiary, which is not only costly, but also requires a lot of effort and time.
EOR allows employment in a new country to be realised without the above burdens.

“The cost is $599 per month in addition to the salary of your designated employee.
We have local subsidiaries in over 100 countries and employ over 500 payroll and labour law specialists.
These local subsidiaries hire on your behalf according to the terms and conditions you specify and provide you with the resources.
Of course, our experts will also provide you with benefits in accordance with the legal system of the country in which you are employed, calculate payroll in accordance with the tax system and pay taxes on your behalf.
It may be easier to understand if you imagine that the company to which you outsource your payroll calculations is renting out your employment box.”

“EOR is used for a variety of purposes, here are some examples.”

  • Acquire employees who speak the local language and can provide on-site support to customers and distributors in countries where you don’t have a subsidiary
  • Increase the speed of market approach without the need to establish an entity which is time-consuming and has legal risk
  • Reduce fixed costs by acquiring employees in countries with low labour costs, such as IT specialists, who are difficult to acquire due to high labour costs
  • Prevent resignation by bringing their spouse or family abroad

We provide visa arrangements, co-working space and travel insurance as options that can be attached to EOR, which can be used to acquire and deploy local as well as Japanese employees.
We also offer a single platform of services that break down the tax and legal barriers for cross-border recruitment as well as EOR.

Examples include the following services:

  • Global Payroll:
    Centralises payroll outsourcing for companies with employees in more than 60 countries
  • Entity Setup Service:
    Assistance with incorporation procedures, opening of bank accounts and preparation of employment contract templates
  • Global Immigration Service:
    Processing of visas on behalf of clients

Why we as a recruitment agency recommend using EOR ?

In order to recruit in countries where there are no subsidiaries, the only options have been that the candidate must be able to work as a sole trader themselves or that the candidate must be recruited via a recruitment agency that has the capability to dispatch them as an Agency Worker in the chosen country.

However, the number of people who can work as independent contractors is quite limited, and from a job seeker’s perspective, the status of an Agency Worker feels unstable, creating a situation where it is difficult for them to apply. The EOR service makes it possible to reach a large number of candidates, and job seekers can work with peace of mind as the status is almost the same as that of a full-time employee.

From the above, the advantage is that companies can greatly expand the range of job seekers they can hire!

If you have any questions or enquiries about the EOR service, please do not hesitate to contact to Centre People!

TEL: +44 (0)20 7929 5551 
Email: japan@centrepeople.com