Establishing an overseas entity is a risky process, but by using the EOR/GEO (Employer of Record) service provided by JOB LINKS, you can start your business with maximum risk reduction. 

Agenda

1. Difference between EOR and establishment of the entit
2. Difference in cost between EOR and establishing the entity
3. JOB LINKIS Service Introduction
4. Process to start EOR service
5. EOR/GEO (Employer of Record) Service Case Study
   

1. Difference between EOR and establishment of the entity

There are three major differences between using EOR/GEO services and establishing a base in Vietnam: time, risk, and cost.

“Time”

When establishing the entity (representative office, branch, or corporation) in Vietnam, it is said that it takes six months to a year to prepare documents, complete procedures and applications, and establish the entity.

In addition, in the unlikely event that the business does not succeed and the base is to be closed from Vietnam, clearance work needs to be done. It is said to take about one and a half to two years to complete the clearance work, during which time there is often incurred additional costs for miscellaneous work and fees paid to consulting firms.

However, by utilizing EOR, you can start your business in as short as one month (if you have decided on the local talent you would like to hire locally).

By starting in a minimum time, you can start your business speedily without losing business opportunities in the rapidly changing Southeast Asian market.

In addition, in the unlikely event that your business in Vietnam does not budge and you decide to close out of the Vietnamese market, you can quickly take the next action without having to clear out your entity of operations. Companies only need to dissolve in accordance with Vietnam's labor laws in order to terminate EOR services.

“Risk”

In order to manage a company's business in Vietnam, it is necessary to operate the business in accordance with various local laws such as labor and tax laws.

Many managers posted from Japan to Vietnam are experienced salespeople who are not always familiar with local laws and cannot devote a lot of time to these matters. By outsourcing to our company, which has more than 15 years of experience specializing in HR outsourcing, we can reduce the compliance risks that occur there.

In addition, there are many cases where a company is forced to pay a large fine due to additional tax collection during clearance procedures following the closing of a business base.

When utilizing EOR, there is no need to worry about the risk of additional tax collection because there is no need for clearance operations when a company closes a business entity.

“Cost”

Establishing a local entity in Vietnam and closing it in the event of an emergency can be very costly. 

In addition, the management of the entity in Vietnam requires a large amount of fixed costs such as office rent, tax accounting, and tax return filing, even in Vietnam.

However, by utilizing EOR, the fixed costs other than human resources expenses can be reduced to only the management fee paid to us, allowing you to "try out" overseas expansion to Vietnam at a lower cost.

However, when utilizing EOR or establishing a representative office, sales cannot be recorded locally in Vietnam. In such cases, the company will support the contract between the head office in your country and Vietnam and make sales to the head office in your country.

On the other hand, in the case of a corporation, local accounting work is required, but you can actually sell goods locally and record sales locally in Vietnam.

2. Difference in cost between EOR and establishing the entity

Including from establishment to closing, there is a difference of approximately 50,000USD between establishing the entity of operations and utilizing EOR/GEO (Employer of Record) services.

(If a company has a gross profit margin of 20%, a cost savings of approximately 50,000USD equals 250,000USD in sales.)

We would like you to decide whether to use EOR or to establish a base of operations depending on the type of business you want to do in Vietnam.

3. JOB LINKIS Service Introduction

“Rich Experience”

JOB LINKS was established in 2008 and specializes in HR outsourcing.

We have been continuously providing our services to major multinational and domestic clients including Jollibee and Vinamilk.

With over 15 years of extensive experience, we are able to respond flexibly to various situations and promise to be the best solution for our clients.

“Polite Service”

EOR/GEO (Employer of Record) services are used by many companies, especially overseas companies, when they expand overseas, but we feel that this is still a niche service for a lot of companies.

Is there any way to use this kind of service? If you have any questions or concerns about EOR, our staff will be happy to respond to your questions or concerns.

Please feel free to contact us. We can help you either online or offline.

“Background in Trust”

Besides the trust of our customers in Vietnam, we are a group company of Crops, a Japanese company listed on the Tokyo Stock Exchange Standard Market and the Nagoya Stock Exchange Premier Market, mainly engaged in the sale of KDDI Mobile Phones and related services.

Innovare group (headquartered in Singapore) has been providing EOR/GEO (Employer of Record) services since 2000, specializing in the Asian market.

We will accelerate the development of EOR services in Vietnam by utilizing the synergy with Innovare group.​

“EOR/GEO (Employer of Record) Price Quote”

The monthly management fee for EOR/GEO (Employer of Record) services in Vietnam is from a basic price of 500USD.

Please feel free to contact us in your language if you would like a quotation including salaries and social insurance premiums for local talent.

4. Process to start EOR service

STEP1：Finding Human Resources

If your company has already decided on the talent (both local and foreigners) you would like to hire, please provide us with the details.

If you have not yet found the talent, we and our local partners will assist you in the recruitment process.

STEP2：Set the conditions of employment

Once the talent is confirmed, please set up the working conditions (salary, duration, etc.) with the client.

We will prepare an employment contract based on the conditions of employment.

STEP3：Master Service Agreement with us

The Master Service Agreement is concluded between the company and us.

STEP4：Employment Contracts between Talent and us

After concluding a master service agreement between us and the client, we conclude an employment contract between our company and the talent to be hired onsite, based on the terms and conditions of employment.

STEP5：Start service

After concluding the employment contract, the EOR service begins.

After the conclusion of the service agreement, the client can give specific instructions and direction to the talent.

In addition, there is no need to share information obtained in the operation with us, JOB LINKS.​

Role

JOB LINKS

Client

5. EOR/GEO (Employer of Record) Service Case Study

“Translation systems company”

We initially recruited and hired several sales staff, including a local manager.

Later, the Sales department gradually expanded and operations were stabilized.

Currently, the EOR service has already been completed and a local entity has been established to further expand the local business sales channels.

“marketing services company”

We initially recruited and hired several local staff, including a local director.

Eventually, a representative from the head office was assigned to the company, and although it is an EOR service, the company is developing its activities locally in an organized and effective way.

In the future, as soon as operations are more stable, the company is considering establishing a local entity.

Contact

Please feel free to contact us 

Okura (Mr.)　 kazuki.okura@joblinks.com.vn 

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