“Expand without an Entity Set Up with a Global PEO & EOR in Portugal”

Risks and Drawbacks of Setting Up a Foreign Entity in Portugal

Companies expanding their operations into new markets face the challenge of managing and scaling an employee base across multiple countries that may speak different languages. To successfully expand abroad, companies have several options for enabling hiring in international markets. The most commonly used ways are by doing the following:

1. Establishing an overseas entity
2. Selecting independent contractors to handle tasks remotely.
3. Work with a Global EOR (Employer of Record) partner.

The global traditional expansion approach is setting up a legal entity in another country. The upfront costs are enormous and take months to set up. Setting up a foreign entity can be complex, with too many variables to capture here. Labor law, compliance regulations, company structures with dozens of employees, and economic landscapes can differ significantly when people operate across borders. However, if your aim is to operate in a single country for more than 5 years and employ dozens of staff, this option might be the best choice for you.

Hiring international employees requires you to be familiar with all local employment laws, tax calculations, and resident authorizations to run a successful business. In turn, this leads to more than just high expenses, but also creates additional work for your accounting, legal, and HR departments. Until recently, the most common approach for global SaaS companies was to set up a foreign entity in every country they wanted to operate. This is still a viable option for companies looking to operate in that country for at least five years, who plan to employ dozens of people there, or who plan to acquire physical assets there. However, recent global trends have led many countries to halt the approval of new foreign entities, effectively shutting out new entrants.

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Risk-free Business Expansion to Portugal with a Global Employer of Record

To expand your business in Portugal, you must overcome many challenges and problems as a multinational company. Employment laws and regulations can be complex and difficult to understand, with even slight missteps resulting in severe penalties. Complying with labor laws such as paying overtime, avoiding discrimination, and handling firing procedures can be complicated.

Suppose you don’t have time for the challenges of managing a global workforce. In that case, outsourcing global employment functions to an expert global PEO and EOR (Employer of Record) company like Acumen International can be a good decision. Our expert team can handle any HR problems, from tax compliance to employee terminations. We can help you expand your business globally without concern for legal problems related to employment in Portugal

Make a Rapid Market Entry with a Global EOR. No Entity Required in Portugal

The popularity of flexible and agile global employment models such as global EOR (Employer of Record) has also led many companies to look for more innovative ways to set up in other countries. Companies that want to establish a legal footprint in a new country are turning to more agile and faster approaches.

A Global Employer of Record allows companies to expand internationally without setting up a legal entity in their target market, including Portugal. This makes it easier and less expensive for companies to do business in multiple countries risk-free. There's no need to spend months or tens of thousands of dollars setting up a local entity in each target country. By leveraging a Global Employer of Record in Portugal, you can avoid the entity establishment cost, risk, and hassle.

Changing customer behavior and economic downturns have also made using the global EOR (Employer of Record) solution more efficient and expanding into local markets as needed. With this lightweight approach, you can launch your product directly into the Portuguese market while avoiding tax and compliance risks and creating sustainable margins with reduced go-to-market costs.

A Global Employer of Record can help test the new markets without risk and unnecessary cost. Leveraging a global EOR arrangement gives companies the confidence to pursue growth opportunities internationally, knowing they can quickly exit any market if needed.

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Top 10 Reasons to Choose Acumen Global Employer of Record & PEO in Portugal

1. Legal Guidance by Acumen Global EOR & PEO Partner in Portugal

As a business owner operating across national boundaries, you must know the employment-related aspects of business in a foreign country. There are multiple layers of regulation governing employee activities, which can be costly and time-consuming to navigate, particularly for small businesses. Ensuring the correct application of these laws will help reduce your company’s risks and costs – and ensure that you comply with the labor regulations. Acumen provides business advisory services to companies planning to expand into the Potuguese market and assists global organizations in setting up, maintaining, and transitioning their operations in Portugal.

2. Access to the Global Talent Pool via a Global Employer of Record in Portugal

The world is your oyster when it comes to talent acquisition. There is no limit to where your talent can take you. With the help of Global Employer of Record services, you can easily hire the best person in the world for the job, regardless of location. This way, you can create a global talent acquisition strategy to help your business thrive.

3. Rapid Remote Work Enablement in Portugal

A Global Employer of Record helps to accommodate remote work by providing employees with competitive benefits and no changes to their day-to-day work life. A global EOR allows employees or contractors to move to a country of their choice, where they can legally work without worrying about losing their job or changing their current lifestyle. A global Employer of Record allows you to quickly enable your organization for remote work.

4. Worker Misclassification Risk Prevention with a Global Employer of Record in Portugal

Employee misclassification? A global Employer of Record can help you avoid expensive fines and lawsuits in Portugal, so you can run ahead of changing regulations globally.

If you expand your business by hiring international independent contractors, be aware that their work might be too similar to what's required of full-time employees according to local government regulations. This could put you at risk of violating employment and tax laws. To avoid penalties, consider hiring a global EOR (Employer of Record) company to manage your contractors in compliance with all applicable regulations.

Our team of HR professionals and legal experts will help you stay compliant, no matter where your employees or contractors are from.

5. Global PEO & EOR Services – 100% Global Employment Compliance in Portugal

Hiring the right talent is a highly important procedure. That’s why you need to be informed about local laws and regulations, maintain compliance with the labor, tax laws, and immigration regulations and ensure your business complies with local labor laws in Portugal.

Addressing all these challenges would get your business off to a good start if solved correctly. That’s what you get with hiring via Acumen International, our Global Employer of Record and Professional Employment Organization (PEO). We help facilitate an extension of your HR department in Portugal and solve all hiring-related issues. Our team helps you take care of employee setup, such as providing compliant employment contracts, payment processing, ensuring compliance, helping in communication with your newly hired employee, payroll management, etc., that helps you focus on what’s most important: the accomplishment of your business goals.

If you use an Employer of Record, regulation changes will not necessarily affect your ability to hire talent globally. No matter what changes come about, you can protect your company by leveraging a Global Employer of Record solution. This way, your employees can live where they are legally allowed to work and stay with your company.

6. Single End-to-end Global Employment Solution

Acumen International provides a convenient, all-in-one solution for expanding your business quickly and efficiently. With our solution, you can have your new employees up and running in just 72 hours. And because our solution is tailored to businesses with small or no HR and legal departments, you don't have to worry about the hassle of managing payroll and benefits yourself.

7. Compliant Employment Contracts in Portugal

Suppose you plan business operations in Portugal or the EU. In that case, you will inevitably need help creating compliant employment contracts for your workforce in Portugal.  If you want to learn about employment-related tax requirements, Acumen can provide comprehensive legal advice to help avoid legal pitfalls. Our service includes comprehensive employment consulting, legal assistance with employment contract creation, according to Portuguese labor law and tax regulations, mandatory employee benefits, vacations, social security contributions, tax deductions, withholdings, and more. By partnering with Acumen, you reduce your dependence on local infrastructure and experts in these areas. Additionally, we offer assistance with other services that can reduce your expansion costs and hiring time by up to 80%.

Acumen International Employer of Record (EOR) in Portugal can ensure that new hires comply with local laws and regulations and handle all contracting issues.  With a Global Employer of Record, you can hire local and foreign workforce with locally compliant contracts and know that your intellectual property is protected.

9. 365/24/7 Support in Portugal

The Employer of Record handles the HR and payroll for the in-country employees across all time zones in the languages of the countries you operate in.

10. Facilitated Business Transition with a Global Employer of Record

If you’re planning to merge with or acquire another company, you may wonder about the legalities of transferring your employees from one company to another. This is referred to as an “employee transfer,” It involves many risks, paperwork can be complicated and costly, and is often rife with errors. Think of a global Employer of Record as the bridge between your companies during the transition period; the legal entity will manage all employee-related information transfers and communication before and after the merger, acquisitions, or a close-down.

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Comprehensive EOR & PEO Packages and Budget-friendly Rates

Acumen International can offer secure, efficient global HR services to manage Global Payroll, HR & Benefits Administrations for businesses that need international talent but don’t have the resources or skills to handle it themselves. Acumen International’s unique and integrated approach to global employment allows us to offer a comprehensive array of PE and EOR functions in Portugal including:

1. Processing Immigration requirements
2. Visa applications & extensions
3. Work permit sponsorships
4. Streamline onboarding, benefits, payroll, PTO
5. Local labor law compliance
6. Audit-proof compliance requirements
7. Employee benefit management
8. Handling employment contracts, terminations, and compensation
9. Processing medical insurance and benefits
10. Payroll, including year-end tax statements
11. Relocation services & housing
12. Benefit management
13. Special needs or requirements  
14. Multi-country employment without limitations
15. Handling contract workers and ex-pat workforce management
16. Compliant employment or termination within 72 hours.

Difference between an EOR and a PEO. Global Employment Risk Mitigation in Portugal

There are many global employment options out there. However, there is a difference between an Employer of Record (EOR) and a Professional Employer Organization (PEO). However, an EOR is a company that assumes the legal risks of employing your workers, including finance, legal & compliance, and safety risks, saving you from any potential problems down the line. This means that all of the responsibilities that come with being an employer are shifted to them — from tax reporting to handling any injuries or issues on the job. You’ll have none of these hassles but will take responsibility for managing your employees’ tasks and performance.