PEO Service and permanent establishments in Argentina

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Employing personnel through the PEO modality is highly beneficial in many aspects, but it is important to carefully assess case by case to avoid the risk of not managing the permanent establishment correctly.

 

Whenever a foreign company hires employees in Argentina through the PEO arrangement and its activity consists of exporting products from their headquarters to our country and the employees only perform activities related to commercial support, then there is no risk linked to having a de facto PE, since the in-country provision of services is going to be used abroad.

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Benefits of co-employment relationships in Argentina

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Before start talking about the benefits of co-employment relationships in Argentina you could earn with a co-employment relationship, you should know how exactly is.

Co-employment has emerged recently to talk about the relationship stablished between a company (client) and a specialized company in PEO (“Professional Employer Organization”).

That comes for the requirement generated at companies to stablish subsidiaries in different countries from his origin country, and consist on the outsourcing of recruitment process and other Human Resources and administrative task to a specialized company. Thereby, workers would be on the “template” of both companies: owner control diary task, meanwhile co-employer control the rest, so client company can focus itself on this duties which increase benefits, leaving administrative and legal process in co-employer’s hands, who has the knowledge about how this new country works.

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Private Equity: How to Make Investee Companies Go Global?

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In general, private equity funds are characterized by making available their investor’s resources for a limited period of time (usually less than 10 years) and the investees use them for an even shorter period of time. During this period, these companies need to maximize their profits to cover for the management costs and return substantial profits to their investors.

In order to achieve this, they can choose between two possible strategies:

  • Leveraged finance: consisting of bringing the company into debt in order to buy it for a lower amount and then make the acquired company pay off all or part of the debt in order to sell it with little debt for its total amount.
  • Business exponential growth while using their own capital.

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How to Expand a Business Internationally – 9 Keys to Success

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You don’t know how to expand your business internationally? It is not an easy task. In fact, there are companies that specialize in managing subsidiaries in foreign countries in order to raise the probabilities of the success of complex operations like these.

Studies have proved the efficiency these companies achieve. There’s data that should be considered twice before thinking of embarking on this adventure alone. However, we share our 9 keys to increase the possibilities of success when expanding a business internationally.

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PEO Services: The Key Ingredient in business expansion

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The business model that a Professional Employer Organization (PEO) offers has the advantage that suits the needs of both small and big businesses whether they operate locally or internationally. A start-up can benefit from PEO services when they cannot spend resources on setting up a HR department and a big company can benefit from this kind of services by focusing valuable time on their core-business.

«PEO Services offers has the advantage that suits the needs of both small and big businesses whether they operate locally or internationally«

PEO Services for Small Businesses

A PEO is especially designed for small employers that may not have HR expertise or the time and resources available to focus on many of their HR activities. Depending on the PEO services contracted, a few or all of the HR functions can be outsourced. In essence, what a PEO does, is to take care of all your HR-related needs, including administration, payroll, retirement benefits, employee health insurance, compliance issues, taxation, and even worker training.

Depending on the PEO services contracted,
a few or all of the HR functions can be outsourced.

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Welcome to our blog!

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We start this blog with the aim of reflecting the current economic panorama in Latin America, by sharing updated and objective information about the pros and cons of investing in the continent. Our posts are meant for all of those who are interested in starting or expanding their activity in the continent. We expect to help them to learn in depth the current situation in several countries in Latin America besides giving advice about relevant aspects to start their commercial activity in these areas.

We have been helping international companies, for almost ten years now, to set up local teams in LATAM without the need of creating a subsidiary. We offer a global management of our clients’ workers by establishing a co-employment relationship between the client and us (PEO Service).

We have the knowledge needed, we are also present in the continent, and have a flexible, versatile and committed personality to carry out the process that will better satisfy our client’s needs.

In our blog you will be able to read relevant news about the economic progress in LATAM and information related to our services.

We welcome you to follow us, as well as comment and share our posts.

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