An Employer of Record (EOR) is a third-party company that legally employs workers on behalf of your business in a foreign country. The EOR handles payroll, taxes, statutory contributions, employment contracts, and compliance — letting you hire internationally without setting up a local entity.
When you want to hire talent in a new country, you normally need to incorporate a local company, open a bank account, register with tax authorities, and navigate complex labour laws. This process can take 3–6 months and cost tens of thousands of dollars. An Employer of Record removes this barrier entirely. The EOR becomes the legal employer of your staff in that country. Your employee works for you day-to-day, but the EOR handles every employment obligation on your behalf.
EOR is the right solution when your company:
A full-service EOR like GotPaid takes care of:
| Factor | EOR | Local Entity |
|---|---|---|
| Time to hire | 48–72 hours | 3–6 months |
| Setup cost | None | $5,000–$20,000+ |
| Compliance risk | Low (EOR responsibility) | High (your responsibility) |
| Best for | 1–50 employees, market testing | 50+ employees, long-term commitment |
An EOR becomes the sole legal employer — you do not need any local entity at all. A PEO operates as a co-employer, meaning you must already have a registered local entity. For most companies expanding into Southeast Asia, an EOR is the better starting point.
Every country in Southeast Asia has its own employment laws, mandatory benefits, and tax rules. GotPaid teams in Malaysia, Singapore, Thailand, Indonesia, and Vietnam know every regulation in detail.
With GotPaid as your EOR, onboarding takes 48–72 hours. Your candidate can start immediately while all legal and payroll infrastructure is set up in the background.
Incorporating a company in a foreign country typically costs $5,000–$20,000 in legal and registration fees. An EOR eliminates all of this.
GotPaid monitors every regulatory update across Southeast Asia and adjusts contracts, payroll, and benefits automatically — protecting you from fines, penalties, and legal disputes.
Contact GotPaid for a free quote tailored to your needs.
No. A staffing agency recruits temporary workers. An EOR is the legal employer of your permanent, full-time employees — handling all compliance, payroll, and HR obligations.
Yes. GotPaid works with companies hiring a single employee in one country all the way up to large teams across multiple markets.
Yes — the employment contract is issued by GotPaid as the legal employer. The day-to-day working relationship and reporting structure are entirely defined by you.
GotPaid manages the full termination process in compliance with local law, including notice periods, severance calculations, and final payroll processing.
Yes. If you set up your own local entity later, GotPaid can transition employees from EOR to direct employment seamlessly.
Explore GotPaid EOR services or book a free consultation with our team today.
