Widely regarded as one of the world’s most innovative cities with a highly skilled workforce, Singapore is an attractive destination for businesses that seek global expansion into the Asia-Pacific (APAC) region. Serving as a gateway to the region with its strategic location, it is an ideal base for companies to gather consumer insights and create solutions for the emerging APAC markets.
However, setting up and maintaining a legal entity in Singapore require time, money and effort to ensure compliance with local regulations. It may take months before you can start hiring and building a team in Singapore. As a reputable Employer of Record (EOR) in Singapore, we can take care of all your administrative human resource (HR) matters in compliance with local employment regulations, providing you peace of mind while hiring.
In this article, we will detail the 5 benefits of partnering with an EOR in Singapore and how leveraging the EOR services in Singapore can facilitate a seamless global expansion, accelerate market entry and enhance operational efficiency.
Employer of Record (EOR) Services in Singapore
An employer of record (EOR) in Singapore effectively undertakes the legal responsibility of employing and managing the workforce in Singapore, on behalf of a company operating in a foreign country. It can manage all HR-related tasks, such as payroll processing, compensation and benefits administration, as well as statutory and tax obligations. This will free up the time for the company to focus on its core business functions and growth strategies.
An EOR in Singapore also stays up-to-date with the local employment regulations to ensure strict compliance from onboarding to offboarding. Whether by drafting employment contracts, maintaining adequate coverage of business and medical insurance, or handling termination and dispute settlements, its thorough knowledge of the Employment Act in Singapore will help to mitigate risks involved with the global manpower expansion.
5 Benefits of Partnering with an EOR in Singapore
Singapore’s employment laws can be extensive and complex for the uninitiated. An EOR in Singapore can provide valuable support for companies looking to hire local personnel to expand their operations in the country. Here are the 5 benefits of partnering with an EOR in Singapore for your international business expansion.
Accelerate Market Entry
Setting up a legal entity to hire local professionals can be time-consuming and costly. An EOR helps companies to simplify market entry by acting as the official employer for the company’s personnel in Singapore, where new employees can be onboarded within days. This streamlined approach expedites the market entry process and enables businesses to kickstart their global operations swiftly.
To kickstart your business in Singapore, it is important to adhere to local labour laws, tax regulations and compliance requirements, as non-compliance can lead to severe penalties, reputational damage and operational disruptions. But navigating the intricate rules and regulations in a foreign country can be tedious.
An experienced EOR in Singapore is equipped with an in-depth, up-to-date knowledge of local employment regulations. It can help to ensure all your HR practices comply with Singapore’s labour laws, including employment contracts, payroll administration and termination settlement. By partnering with an EOR in Singapore, companies can minimise legal, financial and operational risks, thereby maintaining a strong reputation in the global market.
Leverage Local Expertise
Beyond legal compliance, some of the challenges to manage when accessing a foreign market include cultural nuances, language barriers and differences in business ethics. Working with an EOR in Singapore allows you to tap into a local team with expertise in local labour markets and employment practices. This valuable knowledge can prove instrumental in making informed decisions, adapting to the local business environment, and building productive relationships with employees and clients in Singapore.
Optimise Operational Efficiency
In Singapore, registering a subsidiary company can be a quick and easy process, but it is the subsequent administrative tasks of managing international payroll, sourcing for benefit and insurance providers, arranging tax payables and statutory contributions, and applying for work visas that demand considerable time and effort.
By delegating these tasks to an EOR in Singapore, companies can streamline their operations and improve overall efficiency. The EOR can rely on their established infrastructure and network to ensure timely payroll processing and tax filing while engaging reliable service providers for insurance and benefits coverage. This frees up time and resources so the company can focus on their core business operations and strategic growth initiatives.
To support the prompt execution of global expansion plans, businesses need to be flexible in scaling their workforce up or down as required. Compared to the limited capacity of an in-house HR team, an EOR in Singapore can facilitate agile workforce management by handling the complicated legal processes that come with hiring, termination and different employment arrangements. This allows companies to respond quickly to changing market needs and opportunities.
Choosing the Right Employer of Record in Singapore for Seamless Global Expansion
For businesses looking to enter the Singapore market efficiently and compliantly, it is advantageous to partner with an EOR in Singapore. Not only can you hire local talents quickly and seamlessly without having to worry about legal risks and compliance, but it can also help to streamline your operations and improve work productivity by leveraging local expertise. It is therefore critical to choose the right EOR in Singapore, as it can significantly impact the success of your global expansion.
With BGC Group’s extensive experience and proven track record as an EOR, we are equipped with robust technological infrastructure and in-depth knowledge of local employment regulations to support your business growth. Our dedicated team is well-versed in the local business landscape, culture and practices, which will prove to be vital for businesses embarking on their global expansion journey in Singapore.
Keen to learn more about hiring in Singapore? Check out our comprehensive guide to talent sourcing in Singapore.