
- Article, Global
- February 2, 2024
Introduction
The Human Factor in Cybersecurity
Modern Approaches to Cybersecurity Training
Efficacy of Cybersecurity Training
Transition to Workplace Safety
Mitigating Social Engineering Risks
To mitigate social engineering risks, organizations implement practical training models such as:
- Simulated Phishing Exercises: Creating an environment for employees to recognize and resist manipulation tactics.
- Interactive Workshops: Conducting sessions covering the latest security threats, best practices, and real-world examples
Comprehensive Training Strategies
Monthly security awareness campaigns, security notice boards, two-factor authentication (2FA), and clear security policies form essential components of a comprehensive training strategy.
- Monthly Campaigns: Focused on specific safety topics, providing targeted information and resources.
- Security Notice Boards: Visual reinforcement serving as a constant reminder of the importance of workplace safety.
- Two-Factor Authentication (2FA): Adding an extra layer of security, mitigating the risk of unauthorized access.
- Clear Security Policies: Developing and communicating policies on acceptable use, data handling, and reporting procedures.
Conclusion

- NEWSLETTER,SINGAPORE
- February 1, 2024
- Remote Work: Expanding Horizons
- AI in Recruitment
- Unity in Diversity
- Hybrid Work Mastery Initiatives: Achieving Balance
- Shaping Tomorrow's Workforce Skills
- Leadership Development: Shaping Future Leaders
- Eco-Friendly HR Approaches: Guiding Sustainability
- Employee Well-being
- Digital Onboarding Insights
- HR and Blockchain: Ensuring Trustworthy Transactions
- Advanced Data Analytics
- Intelligent Workplace Technology: Enhancing Work Experience
- Future-Focused HR Analytics Insights
- Building an Employer Brand: Attracting and Retaining Premier Talent
- Versatile Work Arrangements: Powering Innovation
- Encouraging Belonging: Workplace Resource Groups
- Gaming for Growth: The Fun Path to Educational Success
- Mental Health Support
- Freelance Ecosystem Expedition: Navigating Integration
- Securing the Cyber Landscape: Advanced Training Strategies
- Virtual Learning Realities: Navigating the Future of Training
- Customized Rewards: Personalized Benefits Packages
- Conclusion: Mapping Your HR Path
2024 HR Trends in Singapore
Remote Work: Expanding Horizons
AI in Recruitment
Unity in Diversity
Hybrid Work Mastery Initiatives: Achieving Balance
Shaping Tomorrow's Workforce Skills
In 2024, Singapore’s dedication to lifelong learning becomes even more pronounced. Employers will actively endorse skill development, including payroll services, by offering chances for upskilling and reskilling and addressing skill gaps through career development opportunities. This guarantees that their workforce stays not only competitive but also ahead of the curve. Begin with advanced learning management systems, streamlining training and development to ensure an efficient and user-friendly process.
Leadership Development: Shaping Future Leaders
Eco-Friendly HR Approaches: Guiding Sustainability
Employee Well-being
Digital Onboarding Insights
HR and Blockchain: Ensuring Trustworthy Transactions
Advanced Data Analytics
Intelligent Workplace Technology: Enhancing Work Experience
Future-Focused HR Analytics Insights
Building an Employer Brand: Attracting and Retaining Premier Talent
Versatile Work Arrangements: Powering Innovation
Encouraging Belonging: Workplace Resource Groups
Gaming for Growth: The Fun Path to Educational Success
Mental Health Support
Freelance Ecosystem Expedition: Navigating Integration
Securing the Cyber Landscape: Advanced Training Strategies
Virtual Learning Realities: Navigating the Future of Training
Customized Rewards: Personalized Benefits Packages
Conclusion: Mapping Your HR Path
The 2024 HR trends in Singapore are more than just passing fads; they serve as keys to unlock a future filled with boundless opportunities. From the evolution of remote work to AI-driven recruitment and initiatives promoting diversity and inclusion, these trends embody a dynamic and inclusive vision for the workplace. To prosper in this constantly evolving landscape of industry trends affecting business performance, adopt these trends and navigate your way to success by enhancing positive employee experiences for a transformative impact on your business, including payroll services.
Thank you for being a part of this exciting journey into the future of HR digital transformation in Singapore. The adventure is only just beginning, and the most promising moments lie ahead for you as business leaders!

- NEWSLETTER, GLOBAL
- January 23, 2024
A recent survey sheds valuable light on the shifting risk appetite for family offices in Asia. The hunger for risks for these family offices used to be bigger compared to other global counterparts, but there has been a change of late. While a general trend was observed of family offices moving away from cash and towards risk assets, Asia stood out as a unique exception to this pattern.
A family office serves as a private client and family advisory firm that high-net-worth individuals often count on. They are different from traditional wealth managers as they offer exclusive services to affluent families or individuals.
The survey, encompassing family office clients with a collective net worth of $565 billion, revealed an interesting trend that merits our attention. Around two-thirds of the surveyed individuals were based outside North America.
According to experts, family offices in Asia chose risky assets to allocate more funds compared to low-risk assets in the initial part of the year. A notable 44% of their assets are allocated to private and public equity, a stark contrast to the 30-33% held in cash and fixed income. Compared to the family offices in Europe, the US, or Latin America, this difference looks much bigger.
Factors Fuelling the High Risk Appetite for Asian Family Offices
Different factors shaped this risk appetite for family offices in Asia. These include early bets on post-Covid recovery in China and historically low rates of interest. While these factors sparked the initial appetite for risk, the trend evolved with the potential slowdown in China and disruptions in global supply chains. This explains the motive of family offices re-evaluating portfolio allocations.
The contrasting performance of equity markets makes the trend more interesting. While Asian markets, led by Hong Kong’s Hang Seng index and mainland China’s CSI 300, experienced declines, the S&P 500 and Europe’s Stoxx 600 demonstrated robust growth.
Singapore emerged as the global hub for family offices, occupying a prominent place in the evolving market. According to reports, Asia houses 9% of the global family offices, with Singapore leading the list. This country has around 59% of Asia’s family offices, as of 2023. This serves as a testament to the city-state’s proactive regulatory stance and attractive tax environment. While Hong Kong has 14% of Asia’s family offices, around 13% are located in India. Thailand, Malaysia, and Pakistan host the remaining family offices.
Many experts consider Singapore to be a preferred destination for global family offices. This makes it a strategic place from where high-net individuals can access different investment opportunities across Asia.
Seeking Professional Financial Advice from Experts
The shifting dynamics of family offices in Asia demonstrate the resilience and adaptability of wealth management strategies. While global trends indicate a move towards risk assets, Asian family offices are re-evaluating their portfolios in response to regional and global economic shifts.
The IMC Group continues to be a trusted partner for family advisory services. With professionals to assist you in handling finances, you can invest in the right avenues to maximize your returns.

- NEWSLETTER,U.A.E
- January 11, 2024
Corporate Tax Registration Process
At the outset, businesses in the UAE need to get their entities registered to establish their legal existence. Thanks to the streamlined process of online registration, it takes little time to get your business registered with the regulatory authorities. Once recognized, businesses in the UAE are recognized as registered taxpayers. The fast process also allows ample time for authorities to review applications and provide feedback.
The Emaratax technology helps corporate tax registration align with the information submitted earlier for VAT. An early application helps in detecting potential loopholes in VAT registration. Fixing these information loopholes is crucial before businesses smoothly complete the corporate tax registration process.
Avoid a AED 10,000 fine by Meeting UAE's Corporate Tax Deadlines. Contact us for Expert Tax Compliance Guidance and Protect your Business.
Knowing License Categories
For businesses operating in the UAE, the different categories of licenses present surprises since they are habituated to working under established category for years. Notably, branches of a UAE company, especially those spanning multiple emirates, are viewed as extensions of the main head office license and do not require separate registration. Obtaining additional licenses merely by appending ‘branch’ to the name may risk categorizing these licenses as separate entities, subjecting them to distinct regulatory requirements.
Businesses operating under multiple sole establishments or civil company licenses across emirates face similar challenges in the emirates. This challenge becomes particularly pressing for companies when they are coupled with separate VAT registrations. This explains why it’s imperative to identify the license category accurately. Businesses aiming to qualify for small business relief (SBR), particularly regarding financial resources, unified management, and shared bank accounts should focus on this crucial process.
Planning to Close the Company in 2024? Clarifications Await
Often, business owners seem to be reluctant to register for corporate tax, particularly when they consider liquidating their company in 2024. It is crucial to dispel the misconception that liquidating a company absolves it from tax obligations. Businesses need to register their commercial entity, submit a corporate tax return for the truncated financial year, and then commence the de-registration process. Any delays in compliance may attract penalties, including those on legal representatives.
Different tax authorities in the UAE need to coordinate on the matter. Therefore, obtaining corporate tax clearance might be a prerequisite for approving company liquidation, prioritizing the importance of timely compliance.
Tax Benefits for Free Zone Companies
Recent developments have granted commodity traders operating from non-designated zones a preferential tax rate of 0% on income generated on qualifying commodity trading. However, companies established in ‘designated zones’ continue to face complexities when it comes to their eligibility for preferential tax rates on direct/third-port shipments and ‘high-sea sales.’
Considering the ongoing debate, it’s important to determine the eligibility of your business based on its location and goods. Relying solely on public consultation documents may not be the logical approach. Free zone companies engaged in various qualifying activities must understand the scopes of inclusions and exclusions regarding their qualifying activities.
Adequate Substance: Ensuring Tax Benefits
For companies eligible for free zone tax benefits, maintaining adequate substance in the respective free zone is imperative. The restructuring required to meet substance requirements could be substantial. With the new era of tax regulations posing considerable challenges, businesses must be meticulous while planning. Inadequate planning or inexperience can lead to missed opportunities or penalties.
The IMC Group continues to be one of the trusted corporate tax consultants in Dubai. Businesses can reach out to these professionals for sound advice and remain on the right track amidst the evolving tax regulatory regime.

- NEWSLETTER,U.A.E
- January 11, 2024
As the UAE braces up for a new era of corporate taxation in 2024, businesses operating in the country should equip themselves with the necessary procedures and knowledge to comply with the upcoming corporate income tax regulations. Successful enterprises and organizations seek corporate tax advisory in Dubai from established partners for adherence to the new policies. Let’s take a look at new corporate tax compliance requirements in the UAE in 2024 in this edition.
- Register for Corporate Tax
- Necessary Documents for Corporate Tax Registration
- Maintaining proper accounting records
- File a Corporate Tax Submission
- Corporate Tax Rates Businesses Must Know
- Corporate Tax for Free Zone Companies
- Relief for Small Businesses
- Calculating Taxable Profit
- Differentiating VAT and Corporate Tax
- What are the administrative penalties?
Register for Corporate Tax
In the UAE, the implementation of corporate tax is set to commence from the first financial year starting on or after 1st June 2023. All companies, including the ones operating in free zones, should register for corporate income tax, regardless of their existing VAT registrations.
The Emara Tax portal on the Federal Tax Authority’s (FTA) website facilitates this process, offering a seamless registration experience. The registration process is simple, and it won’t take more than 30 minutes to complete the process. A comprehensive video guide is available on the website for FTA to assist businesses. Even companies that have already registered for VAT and Excise Tax can complete their corporate tax registration through the portal.
Businesses that aren’t currently registered for Excise Tax or VAT first need to create a new user profile on Emara Tax. Next, they need to choose corporate tax registration and complete the application process. For your application to be successful, it’s imperative to furnish accurate information and update the supporting documents.
Necessary Documents for Corporate Tax Registration
The necessary documents to complete corporate tax registration of Legal Persons include:
- An Emirates ID of the authorized signatory
- Proof of authorization (POA/MOA) for the signatory
- Trade license or business license
- Passport
The FTA requires businesses to provide accurate percentages of shareholding that correspond to the actual holdings of the owners and align the date or incorporation with the commencement date of the company as per the MOA. Entities must also provide the tax period. Businesses willing to form a Corporate Tax Group have to register individually. They have to obtain a Tax Registration Number and apply to establish a Corporate Tax Group at a later date, according to FTA’s guidelines.
Maintaining proper accounting records
The corporate tax law in the UAE makes it mandatory for businesses to maintain specific accounting records. Companies must seek assistance from professional teams for compliant bookkeeping and accounting. Reputed tax consultants in Dubai can provide you with the necessary assistance and advice in this regard.
File a Corporate Tax Submission
Avoid a AED 10,000 fine by Meeting UAE's Corporate Tax Deadlines. Contact us for Expert Tax Compliance Guidance and Protect your Business.
Corporate Tax Rates Businesses Must Know
The corporate tax rates in the UAE are based on annual net profits.
- Tier 1: For companies with annual net profits up to AED 375,000, no tax has to be paid
- Tier 2: For companies with profits of more than AED 375,000, a 9% tax rate has to be paid
- Tier 3: Large MNCs need to pay tax at a different rate as per OECD Pillar Two guidelines
Corporate Tax for Free Zone Companies
Relief for Small Businesses
Calculating Taxable Profit
Differentiating VAT and Corporate Tax
What are the administrative penalties?
Businesses in the UAE failing to adhere to corporate tax regulations may face administrative penalties ranging from AED 500 to AED 20,000 from 1st August 2023.
The FTA has launched an extensive awareness campaign to help the business community understanding the implications of corporate income tax. This educational initiative includes several workshops, sessions, and webinars to provide in-depth insights into the Corporate Tax Law. This will help foster a culture of self-compliance among businesses. Both taxpayers and the broader business community will benefit from this programme.
Notably, virtual workshops conducted in Arabic and English on ‘Corporate Tax Registration’ cover critical aspects, including the creation of a new user profile on the Emara Tax portal, necessary documentation, application procedures, and obtaining a UAE Corporate Tax Registration Number.
As a leading company providing corporate tax advisory in Dubai, the IMC Group continues to assist businesses comply with tax norms. With professional guidance, businesses can make conscious decisions to ensure tax compliance.

- NEWSLETTER,SINGAPORE
- January 11, 2024
On October 24, MAS launched a comprehensive public consultation to streamline the regulatory norms for fund managers. The proposed changes involve phasing out the Registered Fund Management Companies (RFMC) regime. This is a crucial move to reinforce regulatory oversight and enhance the standards of the industry.
Introduced in 2012, the RFMC regime succeeded the Exempt Fund Managers (EFMs) regime. It went a long way in enhancing regulatory oversight. MAS is proposing that existing RFMCs re-register as Licensed Fund Management Companies (LFMCs), to align with current industry standards and cater to accredited or institutional investors (A/I LFMCs).
Transitioning Process and Key Changes
Existing RFMCs interested in becoming A/I LFMCs will be required to submit a detailed form within a prescribed application window. This form will specify their assets under management and confirm their commitment to adhere to regulatory requirements established for A/I LFMCs.
RFMCs can continue their operations as usual during the transition period. MAS will retain the SGD 250 million limit on managed assets and a maximum of 30 accredited or institutional investors for RFMCs. RFMCs opting for this transition will not incur any application fees. This will facilitate a smooth transition and encourage the participants of the market to adapt to the evolving regulatory norms.
According to MAS, the RFMC regime has helped in the transition from the EFM regime. A number of RFMCs have become A/I LFMCs, and new entrants are willing to carry out management in Singapore. They are not interested in applying to be RFMCs, but A/I LFMCs.
Next Steps
Participants of the industry can provide their valuable feedback and insights on these proposed changes to MAS till December 31. This brings an opportunity for stakeholders to contribute to regulatory adjustments to further refine them.
At the IMC Group, we understand the significance of staying informed and engaged in regulatory discussions. We encourage our partners to actively participate in the consultation process. This ensures that they can consider diverse perspectives in shaping the future of fund management in Singapore.

- NEWSLETTER, GLOBAL
- January 10, 2024
Now that we are already into 2024, it’s time to have a look at the significant transformations in Governance, Risk, and Compliance (GRC). With global end-user spending on risk management and cybersecurity projected to reach $215 billion, the dynamics of GRC programs are evolving rapidly. As a forward-thinking business, you would be interested to know about governance risk management and compliance trends and seek professional solutions from experts.
It’s time to explore the key trends that will shape the GRC landscape this year.
- AI Revolutionizing GRC
- Connected GRC Strategy for Enhanced Visibility
- Turning Risks to Rewards through Continuous Control Monitoring
- Proactive Compliance as a Business Imperative
- Cyber Risk Optimization for Resilient Enterprises
- Third-Party Risk Management Takes Center Stage
- Better Resilience Can Define Risk Management
- Gaining strategic advantage by quantifying non-financial risks
- Integrated Platforms for Simplifying GRC
- Empowering The Frontline in Risk Management
AI Revolutionizing GRC
Connected GRC Strategy for Enhanced Visibility
Turning Risks to Rewards through Continuous Control Monitoring
Traditional control testing and monitoring fall short in the face of evolving organizational complexities. A study involving 500 risk leaders revealed that 70% consider access to optimized real-time alerts to mitigate the effect of serious risk events significantly. The evolving complexity of organizations renders traditional control testing and monitoring insufficient.
Operating in 2024, businesses need to prioritize real-time risk visibility and continuous control monitoring. This approach strategically monitors and tests security controls, detecting risks, issues, and potential threats automatically from diverse sources of data.
Proactive Compliance as a Business Imperative
The True Cost of Compliance report highlights an 18.8% surge in financial crime compliance expenses since 2020. Tackling such regulatory changes accompanied by compliance costs requires organizations to adopt a proactive stance. This involves leveraging AI on a centralized platform to automate recommendations and integrate enterprise systems with effective compliance and risk management systems to uniformly view compliance.
Cyber Risk Optimization for Resilient Enterprises
Third-Party Risk Management Takes Center Stage
Better Resilience Can Define Risk Management
Gaining strategic advantage by quantifying non-financial risks
Integrated Platforms for Simplifying GRC
Empowering The Frontline in Risk Management
With the spotlight shifting to the frontline in risk management, it’s crucial to delegate more responsibilities to the frontline along with comprehensive training and tools. Advanced GRC technologies, including conversational interfaces and AI/ML, will streamline frontline engagement.
The IMC Group remains committed to empowering organizations with governance risk management and compliance solutions to explore the ever-evolving GRC landscape. With professional assistance on the side, businesses can secure their operations as they stride ahead.

- NEWSLETTER, GLOBAL
- January 10, 2024
As we reflect on the conclusion of COP28 in Dubai, it’s imperative to take a look at the key takeaways that are likely to shape the future of global climate action. This event was hosted under the CEO of a prominent UAE-based state-owned oil company, Sultan Ahmed Al Jaber. The insights are likely to shape strategies governing ESG for Businesses in the coming years.
Here are the key insights from COP28 that readers would be interested to know.
The Move Towards Sustainable Energy Sources
Debate over the Climate Deal
Challenges with Climate Finance
Commitment to Renewable Energy
Reducing Methane
Failure of Carbon Offset Negotiations
Why Do Companies Need ESG Services?
Post-COP28, national policymakers are likely to translate these climate priorities into legislative actions. Beyond oil and gas, other industries will be closely monitoring and adapting to the evolving regulations, considerations on supply change, and ESG norms. Forward-thinking businesses consult professionals like the IMC Group for ESG Services. With dedicated assistance, businesses can avoid reputational and legal challenges, embracing sustainability practices in every department.

- NEWSLETTER,U.A.E
- January 10, 2024
Planning to invest in off-plan properties in Dubai? As a forward-thinking investor, you would like to secure your investment. Successful investors habitually seek due diligence services in Dubai to ensure they remain on track with legalities. At the same time, it’s imperative to assess your ROI and secure your property at the lowest cost, besides benefiting from a favourable payment plan.
However, capitalizing on such lucrative opportunities calls for a deep understanding of the country’s regulatory framework regarding these dealings.
In this edition, we are going to explore the key guidelines mentioned in Dubai Law No. 13/2008 regarding Real Estate Registers. This will present you with a comprehensive roadmap for acquiring off-plan properties successfully in Dubai.
Key Aspects to Focus on While Purchasing Off-Plan Property
1. Registration and Compliance
2. Acquiring the Land
3. Legal Due Diligence
Legal due diligence buying property in Dubai involves a verification process with the government authorities like the Real Estate Regulatory Agency or the Dubai Land Department. During this step, the property is registered in the presence of an escrow account while the necessary permits are obtained.
4. Transparent Application Processes
5. Protecting the Rights of Buyers
6. Completion and Registration Protocols
7. Stringent Contract Formalities
8. In Cases of Violation
Seeking professional support for legal due diligence

- Article, Global
- January 3, 2024
Venturing into international markets is an appealing opportunity for companies seeking expansion, access to new markets, a broader range of skilled professionals, and various other advantages.
Indeed, expanding globally comes with inherent risks. These include increasing interest rates, inflation, geopolitical tensions, supply chain interruptions, and additional challenges. Multinational corporations are focused on mitigating these risks while actively seeking the advantages linked with international expansion.
Certain multinational companies are investigating options beyond the conventional method of international expansion. This traditional approach typically includes creating a legal entity in the desired country, initiating a local payroll system, and directly recruiting and compensating staff.
This article provides an overview of an alternative approach offering lower risk and flexibility than traditional international expansion methods. Additionally, it highlights essential aspects service providers often watch or restrain when pursuing this path.
Scaling Horizons Enterprises need to meticulously assess their alternatives prior to venturing into global markets, ensuring the selection of the most advantageous resolution in accordance with the regulations of the destination nation, short- and long-range corporate tactics, and additional variables. It is crucial to bear in mind that every nation possesses distinctive regulations governing taxation and labor, along with a variety of legal entity alternatives. This segment aims to furnish overarching insights into prevalent alternatives, encompassing advantages and pitfalls, and is not all-encompassing.
Engaging Independent Contractors
Non-Resident Employer Registration
Partnering with an Employer of Record (EOR)
An employer of record (EOR) or EOR provider is a company with an established local legal presence in a specific country. When a growing organization opts for an EOR, this provider hires local workers, pays them in the local currency, offers benefits, and manages income and social security tax payments to local authorities. Simultaneously, the growing company (the client of the EOR provider) supervises and directs these workers. Importantly, using an EOR solution means the expanding organization doesn’t have to establish its legal entity or payroll system in the target country.
Employer of Record services is not designed as a lasting employment resolution. Depending on regional regulations, the type of operations, the workforce size, and additional considerations, an entity might activate a permanent presence and associated responsibilities.
Local Entity Setup
Exploring Markets Securely & Risk Reduction via EOR
The overview of expansion choices above emphasizes that creating a local legal entity is the most compliant and adaptable approach for entering a new country. However, initiating a legal entity in a new market signifies a substantial commitment, with the process being both costly and time-consuming, especially when considering the potential need to close it down later.
On the contrary, an EOR offers a company a relatively low-risk and swift method to expand internationally and, if needed, withdraw from the market. During periods of intense global economic or geopolitical uncertainty, or when a company isn’t entirely confident about the benefits of entering a new market, an EOR can be especially attractive. It enables an organization to evaluate market feasibility, workforce potential, and customer demand while minimizing expenses, legal intricacies, administrative burdens, and compliance risks.
Moreover, numerous EOR providers operate across multiple countries, allowing companies to test markets in diverse jurisdictions simultaneously. This comparison of outcomes can significantly influence their future operational strategies.
Determining the Transition from EOR to a Legal Entity
It’s crucial to note that an EOR arrangement isn’t intended for long-term use, nor does it provide a company with the ability to thoroughly conduct a broad spectrum of business operations within a country. Significantly, relying on an EOR might constrain an organization’s expansion within the target country. Depending on local tax regulations, enforcement trends, and other factors, if a company gradually hires an excessive number of workers under an EOR, it faces the risk of establishing a taxable presence, also known as a permanent establishment (PE). Therefore, it’s imperative for businesses utilizing an EOR to monitor their local headcount and operational activities closely.
As the risks of establishing a permanent establishment (PE) rise, a company must contemplate creating its local legal entity and transitioning EOR employees to the new entity’s payroll. Alternatively, the company might terminate its association with the EOR and withdraw from the market.
Triggering a permanent establishment involves navigating a complex and, at times, uncertain terrain. Hence, a company facing this situation should engage a third-party expert well-versed in local tax and labor laws to comprehend the advantages and drawbacks of continuing with an EOR. Generally, a company should utilize an EOR for two years or less before setting up its own legal entity or exiting the market.
Sometimes, EOR providers downplay or omit the risks related to permanent establishment (PE). Hence, it’s crucial to either partner with an EOR service provider capable of setting up legal entities, bank accounts, and payrolls in the expansion country or enlist a third-party advisor to accurately evaluate when to transition from the EOR to the company’s independent legal entity.
Establishing a legal entity might extend up to six months in select countries, so organizations should plan well in advance. Despite the potential expenses and time investment, creating a legal entity becomes more cost-efficient than utilizing an EOR once a company achieves a particular scale in a market. Additionally, it grants organizations the freedom to expand without concerns about their tax status.
It’s crucial to grasp that while an EOR offers a speedy, low-risk method to kick off operations in a new place, it might not suit every expansion scenario. Depending on various factors such as the target country, corporate strategies, planned activities, the number of employees involved, and other considerations, initiating a legal entity from the start could be more suitable.
Departing the Market
As previously mentioned, one advantage of using an EOR provider to enter a new market is the relatively swift and economical process of discontinuing the association and exiting the market if your plans alter or your endeavours don’t yield the expected advantages. Conversely, winding down a legal entity can be costly and typically spans around six months.
Should an organization utilizing an EOR depart from the market for any reason, it’s crucial to provide advanced notice to local employees and the EOR provider. Contractual or compliance obligations regarding employee notification and the continuation of benefits might exist. Additionally, terminating an engagement before the end of a calendar year might sometimes entail tax or other responsibilities.
Lastly, it’s worth noting that an EOR can serve as a viable option for organizations winding down a legal entity in a specific jurisdiction yet aiming to sustain a presence in the market. Just as an EOR presents a relatively low-risk market entry, it mitigates risks associated with a complete market exit by enabling the organization to uphold local relationships, cater to local clientele, and retain valued employees.
Bringing on board new employees for your company can often be challenging. IMC offers an EOR & PEO structure to streamline this process, enabling you to recruit fresh talent without establishing a new entity.
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