A PEO payroll company in Colombia is a good option if you are looking to enter the Colombian market for a limited-scale or short-term commercial activity.
Because when you hire staff through a professional employer organization (PEO), the PEO firm employs them through its locally based subsidiary, while you retain full control over their schedules and workloads — meaning that you can effectively enter the market without going through entity set-up.
A PEO firm is also known as an employer-of-record (EOR) and is often called a PEO payroll provider. This is because they manage all payroll.
For foreign investors or corporations that only require a few local employees, it is also an option to hire staff through a PEO payroll firm in Colombia.
Contact us todayIf you are interested in learning more about our PEO services in Colombia, please contact us.
Colombia a popular destination for foreign investment
Colombia is a popular destination among foreign investors. $14.3 billion in foreign direct investment (FDI) entering the country2019 (all figures in USD).
This was the result almost 4.5% of gross domestic product (GDP), which in 2019 was registered at $323.4 billion. In 2020, Colombia’s GDP fell to $271.3 million due to the turmoil caused by the global COVID-19 pandemic.
The World Bank recently highlighted this fact however. expects the country to register GDP growth of 7.7%2021 will see a greater decline than in 2020.
While Colombia is famed for its coffee production, it’s number one export product is petroleum oil. It is also one of the world’s primary sources of emeralds, and has rich deposits of other precious gems and metals, including significant gold deposits.
The country also has a large agricultural industry, including fruits and nuts as well as cut flowers and plants that can be used to make coffee.
Colombia is well-known for its business-friendly outlook, commitment to free trade and resident businesses greatly benefit from its participation in regional integration efforts, including the Andean Community of NationsAlongside Bolivia, Ecuador, Peru
It is also a founding member of the Pacific Alliance — a 10-year-old economic association that also includes Chile, Mexico, and Peru, and which recently demonstrated its commitment to expanding beyond the region by concluding negotiations with SingaporeTo become its first associate member.
If you are considering moving to Colombia, there are many benefits to hiring through a PEO payroll agency in Colombia.
How can a PEO Payroll Company in Colombia help you?
Your Colombian PEO payroll company will not only help you to hire staff and manage the payroll, but also assist with recruitment.
Because a PEO payroll company will be able to provide local recruitment services and have knowledge of the local education landscape and the best qualifications available for candidates,
A PEO payroll company can also provide valuable advice in relation to the market and will be able to draw up documents such as employment contracts.
The PEO payroll company will ensure compliance with all regulations and norms. This is a notable benefit to hiring via a PEO payroll provider in Colombia.
Although a PEO company will charge you a fee per employee, it will often be much lower than the costs associated in entity formation and subsequent liquidation. You can also get to work in the time that you need to find the right people for your roles.
What are the benefits to hiring through a PEO Payroll Company in Colombia?
The following benefits come with hiring employees through a PEO Payroll Company in Colombia:
Local knowledge: Your PEO payroll company will have extensive knowledge of the local market which you can benefit from during the hiring process.
Established network: A Colombian PEO firm will have a network that you can tap into to find the staff you need and assist with other aspects.
Rapid entry Working with a PEO payroll company means that you can have staff in only the time it takes to find them. Depending on the profile of who you are looking to hire, it could take weeks or even days.
Only a limited commitmentYou can hire through a PEO company in Colombia to limit your commitment to the market, until you are ready for further development via company formation or the establishment of another type of entity.
Cost efficiencyPEO fees will be minimal in comparison to the costs associated with establishing and managing your own entity. Therefore, it is a cost-effective solution in many instances.
Legal support: Your PEO payroll firm will be responsible for properly implementing all aspects local regulations, including employment and labor laws, and other codes that are relevant to the hiring of people in your business sector.
Biz Latin Hub is your PEO payroll company for Colombia
Biz Latin Hub is your PEO payroll company in Colombia. We have the people and expertise. We offer hiring & PEO servicesAs part of a broad portfolio of back-office services that also includes company formation, accounting & taxation, and legal servicesAmong other things.
We can help you take the next step in your market by providing PEO services.
We also have teams available in 15 markets in Latin America and the Caribbean. Our team specializes in multi-jurisdictional entry.
Contact us todayFind out how we can help your business do business in Colombia.
You can also read about our team and expert authors.
This is a quick snapshot of Colombia’s employment law.