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PEO Service and permanent establishments in Argentina

Employing personnel through the PEO modality is highly beneficial in many aspects, but it is important to carefully assess case by case to avoid the risk of not managing the permanent establishment correctly.

 

Whenever a foreign company hires employees in Argentina through the PEO arrangement and its activity consists of exporting products from their headquarters to our country and the employees only perform activities related to commercial support, then there is no risk linked to having a de facto PE, since the in-country provision of services is going to be used abroad.

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Benefits-of co-employment-relationships-in-Argentina

Benefits of co-employment relationships in Argentina


Before start talking about the benefits of co-employment relationships in Argentina you could earn with a co-employment relationship, you should know how exactly is.

Co-employment has emerged recently to talk about the relationship stablished between a company (client) and a specialized company in PEO (“Professional Employer Organization”).

That comes for the requirement generated at companies to stablish subsidiaries in different countries from his origin country, and consist on the outsourcing of recruitment process and other Human Resources and administrative task to a specialized company. Thereby, workers would be on the “template” of both companies: owner control diary task, meanwhile co-employer control the rest, so client company can focus itself on this duties which increase benefits, leaving administrative and legal process in co-employer’s hands, who has the knowledge about how this new country works.

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