Expanding into a new country can be complex. You may have found the perfect talent in Indonesia, but the idea of establishing a legal entity, navigating local payroll, and managing compliance seems daunting. Luckily, there’s a strategic solution that allows you to bypass the lengthy company formation process: the Employer of Record (EOR) model.
What is an EOR?
An EOR is a third-party organization that legally employs a worker on behalf of another company. In this model, the EOR handles all the legal and administrative responsibilities of a local employer, while you, the client, retain full control over the employee’s day-to-day work, projects, and tasks.
How Does it Work?
The process is straightforward: you find the talent you want to hire, and a partner like Accura handles all the legal, HR, and payroll complexities. The employee is legally on Accura’s payroll, while they work exclusively for you. We manage the employment contracts, visa sponsorship, payroll processing, tax reporting, and compliance with local labor laws. This allows you to get a team on the ground without the need for a local entity.
Why Choose EOR?
The EOR model is more than just a convenience; it’s a strategic tool for market entry. Here’s why it’s a smart choice for many foreign companies:
- Speed to Market: Get a team on the ground in weeks, not months. You can onboard talent and start operations while you decide on a long-term strategy.
- Reduced Risk: Avoid the legal and financial risks associated with non-compliance. Your EOR partner is responsible for navigating complex regulations.
- Cost-Efficiency: Eliminate the significant costs and overhead of company setup, which can be expensive and time-consuming.
- Flexibility: It’s a perfect solution for testing a new market, launching a short-term project, or hiring specialized talent without a full-scale commitment.
Conclusion
The EOR model provides a seamless, low-risk, and cost-effective way to access Indonesia’s talented workforce. It gives you the flexibility to hire the right people at the right time, without the administrative burden. By partnering with a reliable EOR provider, you can focus on building your team and growing your business with peace of mind.