Testimonial
Manuel Ramos
TERAO ASIA
Managing Director
We think INS Global is a good solution about starting business in new and complex markets. Understanding the market doesn’t mean you need to set up a company immediately.
5/5
If you’re looking to expand into the Colombian market, INS Global offers both PEO (Professional Employer Organization) and Employer Of Record (EOR) services to assist you with setting up quickly and without the red tape and hassle that international expansion typically involves.
For companies looking to expand their services safely, quickly, and cost-effectively, a PEO (Professional Employer Organization), like a global EOR, is the perfect way to access global mobility expertise. An INS Global PEO in Colombia lets companies recruit and assure HR services for employees in-country in as few as two days.
An EOR (Employer of Record) acts as an employer for purposes of outsourcing complex employer responsibilities. This is particularly useful for companies looking to expand their services globally in a safe and cost-effective way. INS Global’s EOR in Colombia allows companies to follow their global expansion plans in less than 48h.
A PEO‘s legal experts have an in-depth understanding of local laws and regulations. They will keep you from making any time-consuming or hazardous mistakes.
With traditional company incorporation, you may be looking at several months to a year before your company is up and running. A PEO can save you thousands of dollars and allow you to start operations within just a few days.
Instead of wasting hours on managing your staff and HR services, you‘ll be able to focus on achieving your company goals. At the same time, a PEO handles all of your other needs.
Streamline your costs into a single simple monthly fee and join your target market in a fraction of the time it would take otherwise.
Your company can operate efficiently and securely by having all your HR needs met with just one point of contact.
Global expansion does not come without its risk and complications; in a foreign market, even the smallest mistakes can result in having to pay high penalties and fees. Partnering with a PEO or EOR decreases the probability of errors. It makes sure that your transition process is fast, efficient, and legally secure.
The Advantage in Figures
| PEO/EOR | Company Incorporation | ||
|---|---|---|---|
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Price |
80% Less Expensive |
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Market Entry |
2-5 Days |
6 Months |
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Employee Turnover |
Decrease by 14% |
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Recommendation |
98% of the Current PEO Clients |
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Administrative Fees |
Saves an Average of $450 |
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Costly Payroll and Compliance Fines |
Help Avoid |
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Company Growth Rate |
7 – 9% |
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ROI |
27% |
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Closed During Pandemic |
-58% |
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Manuel Ramos
TERAO ASIA
Managing Director
We think INS Global is a good solution about starting business in new and complex markets. Understanding the market doesn’t mean you need to set up a company immediately.
While they are often mentioned together and perform similar functions, a PEO and an EOR are not precisely the same.
INS Global offers both PEO and global EOR services in Colombia so that you can have the best services available.
Written employment contracts are not mandatory, but certain contract provisions such as apprenticeships, probation periods, and fixed-term duration are required to be in writing, making written contracts a preferable practice.
Any salary or compensation amounts should be in the local currency of the Colombian peso. Fixed-term contracts cannot go beyond three years.
For indefinite term contracts, the maximum probation period is two months; for fixed-term contracts, one to three years.
Colombia has a government-mandated minimum monthly wage; as of 2022, it is 1 million Colombian pesos.
The maximum number of work hours per week is 48. Overtime hours cannot be more than two hours daily and twelve hours a week. Any work during night hours, from 10 p.m. to 6 a.m., must be paid 35% more than the regular wage.
Overtime hours are compensated at 25% more for daytime work and 75% for overtime night hours. If overtime hours occur during public holidays or on Sundays, the employees must be compensated at 200% of their regular wages.
Employees in Colombia are also entitled to a 13-month salary, paid in two parts: one on the last day of June and the second within the first twenty days of December.
There are 18 days of national holiday in Colombia.
Annual paid leave in Colombia is 15 days after one year of employment. Employees are required to take a minimum of six vacation days annually. Upon agreement, an employee can accrue their vacation days for up to two years.
Employees who have made social security payments for a minimum of four weeks are eligible for 180 days of sick leave compensated at two-thirds of their salary. The employer must pay for the first two days; social security covers the amount from the third day.
Should an employee’s illness or injury result from work, they are entitled to 100% of their salary in compensation for the duration of their recovery.
The state covers maternity leave; as of 2021, the duration has been extended to 18 weeks. Paternity leave is two weeks, and mothers may share the last six weeks of maternity leave with their partners.
Otherwise, paid paternity leave is eight days.
Bereavement leave following the death of an immediate or extended family member is five days.
As of January 1st, 2022, corporate tax has been raised to 35%.
Personal income rates in Columbia are comparatively high and may go as high as 39% on taxable income.
Both employers and employees in Colombia are expected to contribute toward social welfare, health care, and pension.
For health care, employers are required to pay 8.5% of the monthly salary; for pension, 12%. Employers also need to pay 0.522-6.96% towards work injury insurance.
The current VAT rate is 19%.
No, it is necessary to use a local entity abroad to comply with each country labor law.
Foreign companies can either set up a local entity in each country or use the services a local PEO (Professional Employment Organization) to hire the staff on-site directly.
The employer of record is the legal entity liable for the staff employed in a specific country. In practice, a foreign company can either open a subsidiary to become the employer of record of its abroad employees or use a PEO to act as the employer of record.
In general, 1-month is necessary to have an employee based out abroad using an existing PEO as the employe of record. When incorporating a new subsidiary to be the employer of record, the delay varies from 4-12 months.
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