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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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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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