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VERDICT: The Best Employer of Record in Colombia in 2024 is Horizons. Horizons stands apart from its competitors in Colombia with its global network of entities and its in-depth understanding of hiring and onboarding in Colombia.
A Colombia EOR is a service provider or organization that assists companies in employing workers in Colombia.
When a company wants to expand its operations into Colombia, it may establish a legal entity in the country, such as a subsidiary or branch office. However, this process can be complex, time-consuming, and expensive. Alternatively, companies can engage an EOR service in Colombia to act as the legal employer of their workers on their behalf. The EOR handles all employment-related tasks, including payroll administration, benefits management, compliance with labor laws, tax withholding, and other HR responsibilities. Essentially, the EoR acts as a local employer for the workers, even though they ultimately work for the client company.
By utilizing an EOR service, companies can mitigate the legal and administrative burdens of establishing their own legal entity in Colombia. It allows them to have a presence and hire employees in the country quickly and efficiently. This can be particularly beneficial for businesses that want to test the market, engage in short-term projects, or avoid the complexities of local employment regulations.
A Colombia EOR is sometimes called a Colombia Professional Employer Organization (Colombia PEO).
It’s important to note that the specific services an EOR offers may vary among providers. Some EoRs may provide additional services such as recruitment, onboarding, and Colombia work visa support, while others may focus primarily on the administrative aspects of employment.
The demand for EOR providers is increasing as companies recognize the benefits of business in and hiring in Colombia.
Horizons: Horizons is an international Employer of Record with a strong presence in South America and Colombia. With a global entity network (coverage in 180+ locations), as well as recruitment and contractor options, Horizons is the ideal choice for any business looking for a hiring partner in Colombia.
Talent500: Talent500 is a global EOR and talent acquisition platform that supports you through the entire employee life cycle. For access to top Colombia talent, and a platform utilizing the latest AI technology through the recruitment process, Talent500 is an ideal EOR.
Ongresso: Ongresso are latin america market entry experts with special expertise in supporting companies to enter the Colombian market. As well as EOR and PEO services, they also support international companies moving into the Colombian marketplace through comprehensive recruiting, tax, company formation and consultancy services.
Deel: Deel serves as an EOR in over 150 countries, including Colombia. Their platform streamlines the hiring, onboarding, and payroll processes. This is particularly useful in Colombia, where the varying regional labor laws and practices may pose a challenge for companies unfamiliar with the local landscape. Find out more about how Deel can help your business in Colombia in our 2023 Deel HR analysis and service breakdown.
Atlas: Atlas (also known as ‘Atlas HXM’) simplifies the process of hiring in Colombia by handling employment contracts, payroll, and ensuring compliance with local employment laws. Their expertise in the nuances of Colombian employment regulations helps companies avoid potential pitfalls and ensures a compliant, efficient hiring process. Read more about this provider in our 2023 Atlas HXM review.
A Colombia EOR provides various services to assist companies in employing workers in Colombia. Here are some of the key services typically offered by a Colombia EOR:
It’s worth noting that an EOR’s services may vary depending on the provider and the specific agreement between the EoR and the client company.
Engaging a Colombia EOR can offer several benefits for companies looking to expand their operations in Colombia. Here are some of the advantages of using a Colombia EOR:
Using a Colombia EOR allows companies to streamline their expansion into the Colombian market, maintain compliance with local employment laws, and focus on their core business activities while leaving HR and administrative tasks to the experts.
While engaging a Colombia EOR can bring many benefits, it’s also essential to consider the potential disadvantages. Here are some of the drawbacks associated with using a Colombia EOR:
It’s important to carefully evaluate these potential disadvantages and conduct thorough research when selecting a Colombia EOR. Assessing your company’s needs, priorities, and risk tolerance will help determine whether engaging in an EOR is the most suitable option for your business in Colombia.
Engaging a Colombia EOR involves several steps to ensure a smooth and compliant employment process. Here’s a general guide on how to engage a Colombia EOR:
Remember that engaging a Colombia EOR should be done by local laws and regulations. It’s advisable to consult with legal and HR professionals with expertise in Colombia’s employment landscape to ensure compliance and smooth operations.
Engaging a Colombia EOR can be a strategic choice for companies looking to expand their operations in Colombia. While there are potential disadvantages, the overall benefits make it an attractive option for many businesses.
By partnering with a Colombia EOR, companies can navigate the complexities of the local labor market, ensure compliance with employment laws, and efficiently manage HR and administrative tasks. The EoR’s expertise and local knowledge allow quick market entry, administrative efficiency, and risk mitigation. Companies can focus on their core operations while leaving HR-related responsibilities to the EOR.
Our picks for the top Colombia EOR companies in 2024 are Horizons, Talent500, Ongresso, Deel, and Atlas.
While staffing agencies and outsourcing providers may assist with recruitment and hiring processes, a Colombia EOR takes on a more comprehensive role. EoRs act as the legal employer of the workers, assuming responsibility for payroll, benefits, compliance with labor laws, tax withholding, and other HR tasks. They handle ongoing employment administration, ensuring compliance with local regulations, whereas staffing agencies typically focus on sourcing and placing candidates. EoRs provide a more holistic employment solution, offering end-to-end HR and compliance services for companies expanding into Colombia.
Yes, it is possible for a company to transition from using a Colombia EOR to establishing its own legal entity in the country. Engaging an EOR can be an efficient entry strategy, allowing companies to quickly establish a presence in Colombia. However, as the company grows and establishes a stable presence, it may choose to establish its own legal entity for greater control and flexibility. This transition involves legally registering a subsidiary or branch office, complying with local company registration requirements, and taking on the full responsibility of employment and HR management. The process can vary in complexity and should be undertaken with careful planning and legal guidance.
