Expanding to the Asia-Pacific region opens the door to many diverse and profitable opportunities. You can find skilled and talented professionals across all industries, from China to Australia to India. Having a foothold in APAC markets allows you to branch out quickly and easily and make the most of the economic prosperity in these countries.
By partnering with an employer of record (EOR) services provider, you can guarantee that every aspect of the company follows local regulations. There are many ways an EOR can improve your expansion experience. This article explains all the advantages in further detail so you can make the most of your global expansion strategy.
What is an Employer of Record?
Ensuring that your company and employees are legally secure is essential when expanding overseas. The success of your day-to-day operations depends on making a smooth transition and staying in compliance with local labor and employment laws.
An employer of record is an organization that offers Human Resources services in multiple countries. It can legally hire employees globally and handle all aspects of recruitment, payroll, HR, and taxation.
An EOR takes on the responsibilities of a legal employer while the employee performs their work for your company as usual. This can mean making strong employment contracts, or allowing you to expand without a business entity.
With an EOR partnership, you don’t need to set up a company branch in a new country to hire new workers. You can find and hire new staff or independent contractors through an EOR. This allows you to continue operations seamlessly and enter new markets much faster than traditional company incorporation.
Local payroll and tax compliance are vital for companies expanding overseas. With global employer of record services, all legal requirements will be taken care of with expertise and accuracy.
An EOR reduces compliance risks and errors , improves employee satisfaction, and saves you time and money with efficient payroll and HR services producing effective results.
Learn more about how an EOR works here.
How Does an Employer of Record Work in Asia?
The varieties of currencies and local requirements in the APAC region can create complications for companies wishing to expand there, especially if employers are unaware of their responsibilities. Local business culture is also paramount to successful expansion and appealing to local clientele.
You may make costly mistakes on things like income taxes without the right information regarding local culture and consumer attitudes.
An EOR has expert local advisors and registered agents who will be at your side at every step of the expansion process. They also keep track of new bills passed or new employment laws so that your company remains updated with local regulations.
With an EOR, you retain complete control over your employees, including their daily operations, hiring, career trajectory, and termination. An EOR handles legal responsibilities like taxation, benefits, payroll, etc.
APAC Countries Supported by INS Global
INS Global offers EOR services in over a dozen countries in the Asia-Pacific region. Here we list each country along with a summary of critical data so that you can see which new market might best suit your company.
One of the largest countries in the world, with an economy in the top 20 global economies, Australia’s real GDP rose by 3.9% in 2021-2022. The country is quickly bouncing back from COVID-19 restrictions, and the multicultural workforce is full of talented and educated professionals who are skilled across sectors.
Cambodia’s manufacturing industry has seen strong growth this year, and the tourism and service sectors are also recovering quickly from COVID-19. Cambodia boasts a GDP of 26.96 billion, projected to go up by 6.2% in 2023.
The pandemic has deeply affected China, although most cities have returned to functioning as usual. However, expansion in China remains complex, with many restrictions for foreign owners including limitations on the power of articles of incorporation without local partners.
Hong Kong’s GDP has fallen 4.3% in the third quarter of 2022 due to the pandemic and other factors. However, the market remains a competitive and strategic location for gaining a foothold in Asia.
In 2022 India overtook the UK to be the fifth-largest economy in the world. This growth trajectory is expected to continue, making it an attractive option for any company that wants to expand to the region.
Indonesia’s GDP grew 5.72% in a year that saw an increase in exports and investments. More so, the country has signed multiple agreements to encourage swift and easy trade between countries.
In the third quarter of 2022, Japan’s GDP shrank by 1.2% due to inflation, meaning cost of living has increased. However, this year Japan has reopened after the pandemic, and recovery is on the horizon for the world’s third-largest economy.
With an economy reliant on tourism and visitor spending, Macau’s GDP has suffered this year. In total, it dropped 33.4% in the third quarter of 2022. As a result, the field is open for companies able to make an opportunity of this dip.
Malaysia’s economy has bounced back from a pandemic-induced slump, with its GDP rising by 14.2% in the third quarter. Also, the country has supportive policies for companies wishing to expand or invest and a well-educated workforce.
The Philippine economy has recovered from a difficult 2021 and increased by 5.6% this year. At the same time, all significant industries have shown positive growth. Import and export figures have also increased. Additionally, the country has a large English-speaking population and a business-friendly economy, making it a good option for companies wishing to expand quickly.
Singapore’s economy has also done well this year, with a significant 4.4% growth in the third quarter of 2022. Known for its favorable conditions towards foreign enterprises, the country remains a top destination.
Like many countries in the APAC region, South Korea reopened this year after pandemic restrictions had limited global business interactions. Their GDP growth in the third quarter of 2022 was not optimal. However, the country’s strategic location and strong presence in the Asia-Pacific make it a good choice for international business and expansion.
Taiwan’s GDP increased by 4.10% in the third quarter of 2022, surpassing analyst expectations. As a result, Taiwan continues to be a significant force in many industries.
Boosted by an uptick in tourism, Thailand’s GDP increased by 4.5% in 2022’s third quarter. So, with pandemic regulations eased, the country has been on the fast track to recovery this year.
Vietnam’s GDP growth is the second fastest in Southeast Asia for the third quarter of 2022. The country has investor-friendly policies and trade agreements, making it appealing to foreign investors and global businesses.