A common misconception is made by business owners that you need to establish a local entity to setup a business and hire in Germany. INS Global provides Employer of Record and PEO services in Germany, allowing your business to employ staff without the need to establish a legal entity or branch subsidiary. In this way, your employees are employed by INS Global in Germany, exclusively on your behalf. It’s a simple, cost-effective solution to hiring in a new market like Germany.
Hire in Germany without establishing a local entity
A common way to employ workers in Germany is through a German Limited Company (GMBH). However, this can have several drawbacks since company incorporation involves injecting substantial capital and can be a time-consuming process. This is not ideal if you want to test the German market or are looking to hire straight away.
Fortunately, for many businesses looking to establish themselves in a market like Germany, it is possible to employ workers without incorporating a separate legal entity. The alternative is by hiring staff through an intermediary PEO service, such as the one INS Global provides.
Through our local structure in Germany, we are able to hire employees exclusively on your behalf. As your employee’s Employer of Record, we at INS Global are responsible for their compliance and tax requirements, however they will still remain under the control of your company. As part of this solution, our team in Germany processes their payroll on a monthly basis, taking care of bonuses, expanses, as well as tax and social security deductions.
Once your talent is hired, we provide ongoing support during your time in Germany including:
- Contract renewal – We are able to provide support during contract renewal negotiations with your employees. We can provide advice and assist in adjusting the contracts in accordance with regulation.
- Termination negotiations – We can ensure the dismissal of an employee is compliant with local regulations and practices.
Advantages of using a PEO in Germany
- Reduced hiring time – By using a PEO’s existing structure in Germany, you’ll be able to begin operations and hire employees in as little as 48 hours.
- Flexible route to expansion – You can add employees to your operations with ease or simply stop your in-country presence. If you decide you’re ready for a local entity, we can also take care of the transition to a Germany Limited Company.
- Lower market entry cost – Without the need to establish a company, your business can expand at a fraction of the cost.
- Access to top talent – As a global PEO with a dedicated in-house recruitment team, INS Global can support your company with your talent acquisition needs. Further support is provided once the right candidate has been chosen to employ them onsite in Germany.
FAQ: PEO and Employer of Record in Germany
Do I need to setup a Germany company to hire staff onsite? No, you do not need to setup a German company or branch subsidiary to hire staff in Germany. Through INS Global’s PEO solution, we will hire your staff on your behalf, taking care of all the administrative work involved in setting up in a new country.
What’s included in your PEO Germany service? INS Global will hire your staff and process their payroll on a monthly basis (including salary, bonus, taxes and social security contributions). We take care of the employment contract and process visas and work permit (if necessary).
How long does it take to hire and onboard in employees? Employees can be onboarded in a matter of days.
How much does a Germany PEO solution cost? We offer tailor-made HR solutions in Germany. Please contact us for more information and we’ll be happy to advise you on your project.
PEO in Germany by INS Global
Looking for a simple, cost-effective solution to hiring employees in Germany? INS Global is a global PEO present throughout the world and can assist with your expansion project. Our team comprises of highly skilled consultants who are well equipped to advise you on your individual business needs including payroll processing, recruitment, PEO and more. Contact our team today to learn more about our solutions in Germany.